Investment Q&A

Q: Hi, now that ATD has formally dropped the proposed take over of 7-Eleven, where do you see the stock price reverting to? Low-mid 70's ...until they announce their next deal.?
I have owned (and trimmed) over the last 10+ years so have done well but I don't think I will get the same returns as I have previously. Can you please suggest a replacement?

Thank you!
Steve

Q: Good morning

What is ATD's average Historical P/E ratio, say for the past 5 or 10 years?

What is the High and Low Historical P/E ratio, the range, during that time period?

Dividing ATD's current stock price of $69 by their reported net income per share of $2.72 yields a Historical P/E ratio of 25.4.

Am I doing what seems like a simple calculation correctly?

I ask because I am seeing a Future P/E ratio for ATD in the financial press of 17.3, which implies a large increase in net income compared with their last fiscal year, a decline in stock price, or some combination of the two,

How should one interpret this dramatic change in Future vs Historical P/E for ATD?

And finally, what is 5i's view on how expensive ATD's price is currently, compared with past history? Does 5i support accumulating ATD shares at this point?

Thank you.

Edward

Q: Good morning. I have a half position in ATD in my RRIF that is the only under performer. I would like to sell it and open a position in gold. I'm not sure whether to buy a producer, a streamer or an ETF. I could add funds and buy 1 full position, or buy 2 of the above categories. Your thoughts and suggestions for tickers would be welcome. Thanks in advance. David

Q: Sir: What 2 US and Canadian stocks or ETFs do you see most unfairly punished now, and most likely to reward , down the road. Also could you suggest one non US value ETF or stock that cheers you a lot? Thanks-JP

Q: Good morning, As a retired investor who can handle moderate risk I'm looking to add to my consumer staples holdings in an RRSP, for both growth and a dividend. My only current holding in this sector is Proctor & Gamble (PG). What would be your top 3 picks in Canada and top 3 picks in the US, ranked please, for a new consumer staples holding?

Q: How would the acquisition of GETGO CAFE+ MARKET affect ATD earning ? Thanks a million.

Q: Feel free to answer following the conference call.
Would you initiate a position here, I am light in this sector.

Of course this stock has been quite stagnant for sometime. Is it getting harder for acquisitions? Is it also hunting for a big one that would move the needle, ie 7/11.

Thank you for this amazing service.

Q: Thoughts please on the quarter? Thx

Q: BN is sitting at 7.5%, AXON - BKNG are 5% and the rest are 3% positions totaling approx. 83% of my stock assets. I have some 1-2% positions in my cash account (GSY, ATZ, PRL, CLBT, HPS.a, BNS,SU, TMDX, TVK and CNQ. I'm heavy tech, financials and industrials going into H2 2025. Would you add to, remove or change anything is this was your account (assuming you're 52 and plan to retire in 8 years). Not looking for a person allocation but rather if it was you, what might you be looking to adjust, if anything. Note I have no utilities currently. Thanks and have a great weekend.

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.