Alimentation Couche-Tard (ATD.TO)

It has come off. Although not a fast growing company, its price ran up this past fall/winter. Its valuation is typically 17 to 17 1/2 times earnings but it is now in the mid 20's. Be cautious - don't buy now in case the valuation goes back to its average.

Leader in its space, incredibly well run. Add here. Rare example of a Canadian retailer doing well in the US. Tends to be soft when economy slows. Phenomenal long-term investment. Spectacular acquirers. Incredible value-creator.

M&A activity very strong in the past. Excellent management team with sharp capital allocation skills. Compounded rate on investment has been good for investors. If economy falls into recession, not goof for business. Would recommend holding shares, but not adding at this time.

A lot of stocks are in these tight trading ranges, and at some point they're going to break out of that. Probably a good entry point. Canadian name with international flair. Well run. Long-term shareholders have been rewarded.

Global leader. Very well diversified geographically. Most revenue comes from fuel; the rest comes from snacks, lottery tickets, and merchandise. Serial acquirers, most recently from Total. Strong fundamentals, good profitability, attractive multiple. Yield is 0.9%.

Have 17,000 locations globally and they just bought a company that gives them a presence in Germany and Belgium.  7-11 is 5x larger, but there's a lot of room for ATD to grow, because 60% of convenience stores globally are run by Mom and Pops. They were disciplined in 2020-1 and are now buying companies strategically. Half their business comes from non-gas, so they're adding car washes and fast food restaurants. The dividend has grown 23% annually over the last 10 years.

Wonderful company. He took advantage of recent weakness to add. Global. Good at capital allocation. Generates tons of cash, with lots of options for what to do with it. Last quarter was choppy by company's standards. Very attractive valuation.

Unique, because this business is hard, and not many can generate the margins they do. As they've gotten bigger, can consolidate sourcing and this further helps margin profile. This is their unique advantage over competitors.

Great Canadian company that is core position in portfolio. Excellent management team with strong capital allocation skills. Expecting many years of growth. Valuation has come back to fair levels. Would recommend buying shares in company. 

Excellent business with strong support levels. Technical analysis showing very strong signals. Up trend very strong - great time for investors to buy. Consumer staple business is very defensive - good for any position in credit cycle. 

Still likes it. Recent pullback on weak quarter reporting. Weakness represents good entry point. Headwinds are macro driven and endemic to the sector, lower income consumers are struggling. Macro headwinds will abate.

Great operators of convenience stores globally that offer high margins on products. They continually buy peers in a fragmented business. After watching this for 20 years, he finally bought it. It rarely pulls back but recently did, perhaps due to inflation. High returns and owners own a lot of shares.

Two months ago, he held it, but has since sold. Headwinds such as food pricing power are longer term, not just a short-term blip. If something isn't working in a bull market, consider moving on. For a company that's a perennial winner, by the time it misses, it's pulled reserves out of every pocket it has to make numbers, but still misses.

The current pullback is an opportunity. Their US business remains sound where there will be a build out of store and merchandise. The pullback is very short term. A headwind would be a slowing economy in North America or Europe. But if rate cuts happen this year, we'll be fine; the consumer will be fine. But if cuts don't come, the consumer will not be fine.

Owns shares in company in portfolio. Highly ranked from technical perspective. Higher trends good for investors. 

Fuel margins less than expected, temporary. More concerning was same-store sales were weak across all geographies. Might just speak to general weakness in consumer spending, and those convenience store items are priced at a premium. Hard to call a trend after 1 quarter.

Grows through acquisition, which is harder now that they're so big. She prefers other growth opportunities.