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What did you buy? What might you buy??

  • Last Updated:
  • Mar 25th, 2017 12:08 pm
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Sr. Member
Feb 1, 2015
513 posts
100 upvotes
Macdonald, 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
1464 posts
426 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
513 posts
100 upvotes
Macdonald, 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.
Sr. Member
May 18, 2015
860 posts
179 upvotes
Ottawa,Ont
Thoughts on Target? Huuuge physcal presence in the states...just worried that they cant establish themselves online as they are late to the ball game
Deal Addict
User avatar
Aug 7, 2007
2367 posts
162 upvotes
GTA
Bought ZAG @ $15.55.

Just need to add XAW next.
Deal Fanatic
Jun 26, 2011
8959 posts
474 upvotes
Another nice dip in Atd.b this morning. Still a bit high for my liking so I am just watching it.
Sr. Member
Dec 30, 1969
699 posts
92 upvotes
nikels21 wrote:
Mar 15th, 2017 10:10 am
Thoughts on Target? Huuuge physcal presence in the states...just worried that they cant establish themselves online as they are late to the ball game
I don't like bricks and mortar retailers, particularly of the box variety. They are also too late to online and will not do well there vs. Amazon.
Sr. Member
May 18, 2015
860 posts
179 upvotes
Ottawa,Ont
llpresident wrote:
Mar 15th, 2017 12:21 pm
I don't like bricks and mortar retailers, particularly of the box variety. They are also too late to online and will not do well there vs. Amazon.
I am assuming Wal-mart is the exception? They are #2 in US online sales and extremely competitive if not the leader in some areas overseas
Sr. Member
Dec 30, 1969
699 posts
92 upvotes
nikels21 wrote:
Mar 15th, 2017 12:40 pm
I am assuming Wal-mart is the exception? They are #2 in US online sales and extremely competitive if not the leader in some areas overseas
I don't like Walmart either. I haven't researched Walmart in a while but from what I recall their online sales are declining on a percentage basis. Walmart will always rank highly on revenue due to sheer size and brand recognition. Growth is what you need to drive the share price.

Why not just buy Amazon?
Deal Addict
Jun 27, 2007
2802 posts
429 upvotes
nikels21 wrote:
Mar 15th, 2017 12:40 pm
I am assuming Wal-mart is the exception? They are #2 in US online sales and extremely competitive if not the leader in some areas overseas
I have DG, DLTR and TGT. Latter is a value play... I would consider WMT at 60 too. AMZN is to rich, great momo play, though.
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
Deal Addict
Jun 27, 2007
2802 posts
429 upvotes
huuuge move in Bonds.
shorting ZB and UB futures, small initial positions. I think they go higher to squeeze all shorts. As Gundlach said, expecting 2.2 on 10Y notes.

oh, yes. Taking profits in ES @2380..2384..2385. Shorting TF @1380. Have YM on offer at 20935
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
Deal Addict
Mar 14, 2007
2545 posts
105 upvotes
Toronto
just picked up on some jnug along with some weed...will be holding these for the long run
Deal Fanatic
Jun 26, 2011
8959 posts
474 upvotes
willyxjai wrote:
Mar 16th, 2017 10:01 pm
just picked up on some jnug along with some weed...will be holding these for the long run
If you hold JNUG for the long run...you are in for some pain.
Deal Addict
Jun 3, 2009
3333 posts
355 upvotes
Montreal
willyxjai wrote:
Mar 16th, 2017 10:01 pm
just picked up on some jnug along with some weed...will be holding these for the long run
RolandCouch wrote:
Mar 16th, 2017 10:11 pm
If you hold JNUG for the long run...you are in for some pain.
Willy could do some reading on the prospectus for any leveraged product...
Last edited by cn_habs on Mar 16th, 2017 10:49 pm, edited 1 time in total.
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