Investing

What did you buy? What might you buy??

  • Last Updated:
  • Dec 17th, 2017 1:22 am
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Deal Addict
Nov 9, 2013
1922 posts
679 upvotes
Edmonton, AB
Jon Lai wrote:
Mar 14th, 2017 10:30 am
How much did they miss estimates by? I can't really find info...
TD DI has an estimate for Q4 at 0.66 - actual was 0.50 (0.53 adjusted).
Deal Addict
May 18, 2015
1121 posts
261 upvotes
Ottawa,Ont
treva84 wrote:
Mar 14th, 2017 10:33 am
TD DI has an estimate for Q4 at 0.66 - actual was 0.50 (0.53 adjusted).
ive been waiting to get in on atd
Deal Addict
Nov 9, 2013
1922 posts
679 upvotes
Edmonton, AB
treva84 wrote:
Mar 14th, 2017 10:19 am
Very likely going to add to atd.b
My order was filled at 58.60.

Hopefully it's a good GARPer, I guess we'll see.
Deal Addict
Nov 23, 2008
2018 posts
435 upvotes
treva84 wrote:
Mar 14th, 2017 10:33 am
TD DI has an estimate for Q4 at 0.66 - actual was 0.50 (0.53 adjusted).
That's a massive miss though!
Deal Addict
Nov 23, 2008
2018 posts
435 upvotes
treva84 wrote:
Mar 14th, 2017 2:35 pm
Yup. I agree!
Then what compelled you to buy in immediately then, despite such a massive earnings miss ?
Deal Addict
Nov 9, 2013
1922 posts
679 upvotes
Edmonton, AB
SomeOtherDude wrote:
Mar 14th, 2017 2:38 pm
Then what compelled you to buy in immediately then, despite such a massive earnings miss ?
The drop in price (i.e. creating a discrepancy between price and value).

It was a bad quarter, and it did not meet the market expectations. My hope is it's a one off and earnings growth should continue moving forward - I think the company has a moat, decent management, and it's a relatively straight forward business (easy to understand).
Sr. Member
Aug 17, 2008
659 posts
209 upvotes
fyi: http://www.theglobeandmail.com/report-o ... e34295881/

"Convenience store operator Alimentation Couche Tard Inc reported a smaller-than-expected quarterly profit on Tuesday, as a jump in crude oil prices gutted margins at the company’s motor fuel retail business ... Excluding one-time items, the company earned 53 cents per share, falling short of analysts’ average expectation of 66 cents, according to Thomson Reuters I/B/E/S."
Jr. Member
Nov 4, 2012
155 posts
10 upvotes
Burnaby
I have entered ATD.B stores several times while filling gas but I never bought anything in there. I find the items are overpriced in comparison to Walmart and Superstore.
Deal Addict
Nov 9, 2013
1922 posts
679 upvotes
Edmonton, AB
craigslist123 wrote:
Mar 14th, 2017 5:37 pm
I have entered ATD.B stores several times while filling gas but I never bought anything in there. I find the items are overpriced in comparison to Walmart and Superstore.
Yup, it is a connivence store - generally people shop there for convenience / ease but of course you pay for it. From a business model point of view, this does afford them higher margins than places like Walmart or Superstore.

For example, Loblaw's has net margins of 2.12%; Walmart has net margins of 2.81%; Couche Tard has net margins of 3.50%.
Deal Addict
May 18, 2015
1121 posts
261 upvotes
Ottawa,Ont
MrMom wrote:
Mar 14th, 2017 3:16 pm
fyi: http://www.theglobeandmail.com/report-o ... e34295881/

"Convenience store operator Alimentation Couche Tard Inc reported a smaller-than-expected quarterly profit on Tuesday, as a jump in crude oil prices gutted margins at the company’s motor fuel retail business ... Excluding one-time items, the company earned 53 cents per share, falling short of analysts’ average expectation of 66 cents, according to Thomson Reuters I/B/E/S."
Link to conference call transcript:http://seekingalpha.com/article/4055199 ... transcript
Sr. Member
Feb 1, 2015
608 posts
133 upvotes
MB
treva84 wrote:
Mar 14th, 2017 6:06 pm
Yup, it is a connivence store - generally people shop there for convenience / ease but of course you pay for it. From a business model point of view, this does afford them higher margins than places like Walmart or Superstore.

For example, Loblaw's has net margins of 2.12%; Walmart has net margins of 2.81%; Couche Tard has net margins of 3.50%.
The gross and/or operating margin would be a more appropriate indicator.
The net margin takes into account interest payments and corporate taxes, and therefore is not adequate when comparing companies that have different interest and tax rates.

Using your example, Loblaw sees higher gross margins than Couche-Tard (28% vs 18%), but ends up with a lower pre-tax operating margin.
One of the reasons is that Loblaw has higher employee payroll & benefit costs (11% of total sales vs 5% for ATD).
Deal Addict
Nov 9, 2013
1922 posts
679 upvotes
Edmonton, AB
catoun wrote:
Mar 14th, 2017 10:56 pm
The gross and/or operating margin would be a more appropriate indicator.
The net margin takes into account interest payments and corporate taxes, and therefore is not adequate when comparing companies that have different interest and tax rates.

Using your example, Loblaw sees higher gross margins than Couche-Tard (28% vs 18%), but ends up with a lower pre-tax operating margin.
One of the reasons is that Loblaw has higher employee payroll & benefit costs (11% of total sales vs 5% for ATD).
Fair enough, but as per the Q3 earnings conference call Couche-Tard gross margins are 33.8% / 32.9% / 42.5% in Canada / US / Europe respectively.
Sr. Member
Feb 1, 2015
608 posts
133 upvotes
MB
treva84 wrote:
Mar 14th, 2017 11:17 pm
Fair enough, but as per the Q3 earnings conference call Couche-Tard gross margins are 33.8% / 32.9% / 42.5% in Canada / US / Europe respectively.
My bad, I haven't updated my spreadsheet. I was still computing the numbers using 2016.

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