mercredi 28 novembre 2018

Who the fuck thought Couche-Tard wouldn't be back?

I don't see how anybody could pass by Alimentation Couche-Tard. The stock is cheaper than it's been for years. And even if there's been a slump for the last 2-3 years, the results of the last 12 months show that the company still delivers. Actually, they don't just deliver, they're still one of the best companies in Canada even if they're one of the biggest companies in this country.

I see very few other examples of companies able to buy other companies, change their model and rise their same store sales. That's the secret of Couche-Tard. They know exactly how to make money. They take a convenience store that achieves just moderate success, they change the recipe and that's now a classic Circle K store that makes a lot of money. 

Dollar Tree has been unable to do that with their Family Dollar acquisition. They paid too much for a chain of stores that didn't perform that well and had a different population as a target. And Dollar Tree still struggles with their acquisition made many years ago while Couche-Tard has achieved a 11% EPS growth during the last quarter, not so long after their huge 4,4 billion US$ acquisition of CST Brands in the summer of 2016. That's fucking phenomenal. 

Achieving such success in such a competitive environment, with such low profit margins (3% for Couche-Tard VS 43% for Mastercard) is something very few people on earth would be able to do. You'll find very very little stocks with such low margins and such a market performance over the long run. 

The executives have recently said that they planned the company to double over the next 5 years. I'm sure they will succeed. For me, there's only a few of my stocks that I'm sure will double before 2024. Among them, there's MTY and Couche-Tard. 

God probably doesn't exists but Alain Bouchard does. That's a good substitute. 

2 commentaires:

  1. Success in Canadian Equities is usually found in:
    - Quebec run companies
    - Owner/operator
    - Acquisitive
    - Does most of its business outside of Canada

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