Investment Q&A

Q: What are the chances that a deal can be made with 7/11 at this point?

I read recently that 7/11 is pursuing a dual-track : exploring a possible sale to ATD or going it alone as a more focused business. As part of plans to remain independent, it is selling underperforming supermarkets and has announced plans to list a portion of its U.S. retail operation to fund a massive stock buyback.

I also understand that if the deal goes through with ATD, there will be a lot of debt for awhile.

Is this a good time to buy ATD? If yes, what would be an appropriate price to acquire it? (5+ year time frame)

I am looking for a stock with some sort of dividend, along with a good chance of high appreciation in share price over time. The chart history of ATD over the last 10 years is impressive. If there are other well-managed Canadian companies with reasonable debt that fit this profile better, please suggest them (with a entry price).

They do not have to be in the same sector as ATD. However, I am already heavy in financials. Thank you for your valuable input.

Q: Long term holder of ATD and starting to rethink my investment based on their company size. I feel the company may now be too large to emulate their previous track record. When compared to the smaller Casey's in the US, ATD has vastly underperformed it's smaller peer recently. Also, they seem to be missing forecasts more frequently the last couple of years which may explain their all in pursuit of 7-11. If the takeover doesn't occur, are there other growth levers the company can pursue to resume growing their top & bottom lines consistently again? Thx

Q: If ATD were to complete a purchase of Seven & I at a decent price, I believe 5i's assumption is that we would see a pop in share price. If ATD were to walk away from a deal, would the share price also increase (due to less dilution, debt, etc)?

In other words, is this a situation where the primary risk for ATD is overpaying for Seven & I?

Q: Hi, I'm considering adding a Canadian bank. I only hold TD. Which bank would you consider to be the best to add at this time for a longtime core holding? I'm thinking of doing a quarter position at this time and build that position over time. Also I started a quarter position in ATD recently and I'm watching it at the moment. Would you consider ATD to be fairly safe at these levels and an attractive stock to increase that position at the current price or wait to see if it's still in the bottoming process. Thank you as always for your expert advice!

Q: Hit "enter" to fast on my last question. Looking for some ideas with the understanding you can't offer direct recommendations. I have 40 K to add to my non-reg account. I have full positions in all the pipelines, OLY, GWO, BNS, CU, NPI, BIR, PEY, TPZ, CNQ, PRL and BMO. I have no need for any income for at least five years, not opposed to going overweight if necessary, have lots of higher yielders so would perhaps benefit from some choices with capital gain and dividend growth potential versus just high yield.

Q: Hi bad day to be sure I see you suggest buying into some stocks but slowly.
What are the best sectors to buy first now that this black swan event is in play. Please give me you top 4 sectors in order of preference. Also you top 2 picks in each of the 4 also in order of preference as well please

What do you think is the worse case scenario as far as market drop % wise I release its just a guess but you guess is almost certainly better than mine at this point

Q: Hi peter I have a 1.7% position in ATD in my TFSA with about a 1000.00 gain in it. I was thinking of selling it and adding to my position in TOI. How much upside would the deal with 7 Eleven give ATD and would this be an ok move in general. Thanks

Q: Hi Group please share your top 4 sectors c/w 3 stocks in each. (please rate the 3 in order of preferred order to add) also if you could suggest a good entry price (i intend to average in over the next 6 months presently no defense /manufacturing exposure also light on health care. I have 20% of my portfolio in cash. thanks

Q: I've held Premium Brands Holdings Corporation (PBH) for eight years with minimal returns. Given its recent challenges, such as weaker Canadian sales and a premium valuation relative to peers, I’m considering switching to Alimentation Couche-Tard (ATD) for better long-term growth potential. ATD seems to offer a more resilient business model, steady earnings growth, and strategic acquisition opportunities, like the potential 7-Eleven deal. What’s your view on the rationale for trading PBH for ATD and the timing? PBH is forecasting stronger growth however rarely materializes... Does ATD’s scale, diversification, and growth trajectory make it a stronger candidate for long-term value creation, or should I hold PBH given its U.S. expansion plans and historical dividend growth? Welcome hearing 5i's insight especially considering PBH's pop today resulting from positive earnings report. Thank you!

Q: Thoughts on the quarter please?

Thx

Q: Top of the morning to ya. I know very little about technical analysis but I am guessing if it was applied to ATD it might signal “sell”. Can I have your thoughts on its valuation right now given the current conditions/risks against the expected earnings going forward? Any insights much appreciated.

Q: I am an 80 year old income investor with some growth. I have $20,000 to employ. The above is a list of my losers out of 50 winners in a portfolio of mostly the Income Portfolio plus 15 yield maximizer ETF's like UMAX. Should I:
1. wait for your monthly advice before acting
2. distribute evenly accross the losers
3. add to the winners
Any other suggestions would be appreciated.
Please take as many credits as needed.
Thank you

Q: I hold Atd in a tfsa with a small gain and considering a switch to Pbl for a 2 to 3 year hold. Given their recent financials,do you see a case for this switch? Thanx.

Q: I am looking to add to my TFSA for a long term hold.
Realising different sectors but considering their current valuations, please rank these companies for a buy.

Q: If ATD is successful in the Seven & i Holdings takeover, it is likely to have to do so at the current bid or higher (eg $50B). What do you expect the stock price reaction will be in the near, mid, and long term should they be successful in their efforts, even at the current 47B? In addition, what do you expect to be the effect on their balance sheet (eg a ton of new debt etc)?

Q: Would you add to ATD today? It appears that their bid for seven and i is progressing?
What would be a good price to add more?

Q: How do you see the ATD stock reacting if they are able to buy the North American retail business of Seven & I? (initial reaction) And how do yo see it reacting if they cannot reach and agreement to purchase these assets? Does the U.S. SEC have to endorse the purchase?

Thanks for all your help? Mike

Q: I hold these large Canadian Companies.. I realize there will be continued volatility in the market but given that these companies have pulled back, some significantly, what order would you buy these names? Are there any you would not buy?

Please deduct appropriately…

Thank you
Tim

Q: ATD has been stagnating lately and I am considering swapping some of it for Dollarama. Your opinion is appreciated. Joe

Q: Can i please get your favorite Consumer Staple and Utility stock to buy right now. 1 for each CAD and US. I already own COST.
Thank you