mercredi 2 mai 2018

Stanley Ma retires

Today, we learn that Stanley Ma will leave his CEO position at MTY Food Group in november. However, he will retain his role as the chairman of the board. So, he's gonna be like Alain Bouchard for Couche-Tard.

The market didn't seem to like that news because MTY was down 3% today, close to it's lowest level for the last 52 weeks.

For me, MTY is one of the very few stocks that could be a big part of someone's portfolio. I see very little risk there. There's a lot of diversity among all the franchises of MTY. The company is very solid. It's growth has been steady and high. That company has everything I'm looking for. Even if they'd get a scandal like Chipotle Mexican Grill, it would probably be limited to a specific franchise among all they own.

So, in my view, it's an occasion, just like when Warren Buffett will die.

4 commentaires:

  1. To add to your comment, Stanley Ma is still the biggest shareholder by far. MTY is highly profitable (high double digit) and generate the cash to keep growing. God knows where the market will go in then next days, but if it keep going down, it will be more of a buy opportunity. P/E is already very low. And Invescor revenue was not in the books for the last earnings report.

    I will be more concerned when Ma will start selling his shares, like the founders of Couche-Tard did last year

  2. Valuation wise, MTY is at close to 10 years low. Quite compelling. I am guessing Imvescor shareholders have been leaving MTY driving down the share price. It seems to be a good opportunity buy more. As long as Stanley is around whether as Chairman or CEO, I am hopeful that MTY keeps delivering great results.

    1. That’s exactly what I’ve realized: the PE has never been so low. And I’m even talking about forward PE.

  3. In the last earning report, MYY reported an exceptional income from taxes or incoming stuff that boosted their earnings thus significantly reduced the p/e from 20ish to 10ish.

    Still... imvescor income are not yet accounted but the dilution from the acquisition is. Add + 20%

    Just go have a walk on a regular week days in the basement of downtown Montréal and Toronto. There is hundred of peoples of not thousands of workers who don't bring their lunch at work and go eat at the food court own buy who ? Us the shareholders of MTY

    Viva Tiki Ming