Canadian Tire Corporation Ltd (CTC.TO)

It has not picked up to the same extent as HD-N. We are dealing with a general consumer related store whereas HD-N has benefited from the home renovation space because at home what else are you going to do with your day when shut in but renovate. As stores start to re-open again and assuming there are no setbacks, then he feels CTC-T stock will continue to appreciate. It is a solid company and much more diversified than it was ten years ago.

Iconic Canadian brand but operating in a very competitive space. Most products are AMZN-Q'able. They have the credit card business which brings in 25% of their earnings but it is essentially sub-prime lending. Loan losses are skyrocketing at a time when bankrupsies are skyrocketing. It is not timely from this perspective. They have been buying back stock but he thinks the runway for that is getting pretty short.

Facing a 20% loss. Sell? It's missed earnings in 5 of the last 7 quarters, and it's exposed to the consumer discretionary space, which is vulnerable in a downturn. Also, it's vulnerable to Amazon. Their chart is making lower highs and lows as the TSX is moving the opposite direction. It isn't cheap, trading at 2.4x book value vs. 1.7x historic average. Also, past major downturns fell 60%.

Well-run retailer, but he's concenered with outside disruption, a digital competitor. It could happen. In retail, he considers the future. They have a decent balance sheet though.

One of the few great Canadian retail stocks. There's support below current levels. When a quality stock is down 10-20%, then buy more. Buy if you can't do that, then maybe you shouldn't be owning it in the first place.

This is a great company. When WalMart entered Canada, they considered Canadian Tire the one company that was unassailable. They’ve done a good job of diversifying and of controlling the sports business in Canada. Their business model--control small-town Canada--has been very dependable. However, they are dependent on external factors. For example, it has to snow enough for them to sell snow-seasonal items. The stock has done very well over the past 5 years. He sees no reason not to own it, but he wouldn’t buy more. It costs too much.

The stock has done well, but its growth is limited by limited Canadian consumer spending. He owns Loblaws and Leons instead. He thinks the valuation is too expensive at this level.