Alimentation Couche-Tard (B) (ATD.B.TO)

If you hold it for a long time, they pay a dividend and have a phenomenal record of rolling up these convenience stores. It is a pretty stable and consistent business. There are probably additional acquisition opportunities for them. The only risk is if they have a misstep.

90% of this company’s revenue is from outside of Canada. 60% US and 30% Europe. A low volatile name. They are going to continue to be a consolidator in this space. They are doing more and more manoeuvres in Europe. Dividend yield of 0.43%.

Terrific management team that rolls up convenience stores around the world. They drive revenues in these stores they bring into their name. They understand higher margin products. They de-levered the company and will acquire again soon.

(Trying to be conservative on his Top Picks this time.) A fantastic growth stock. Technically it still ranks really well. Just made an acquisition in Ireland and will do the same thing as they did before, strip out all the costs, increase the organic growth, get their cash flow, pay down the debt, and then do it all over again. Dividend yield of 0.46%.

Stock vs. Stock. ATD.B vs. DOL-T. They have both done extremely well and are priced for perfection. These two stocks are very expensive and to move the needle they have grow a lot more. He would take the money from these and plow it into companies he is recommending today.

Stock vs. Stock. L-T vs. ATD.B-T. ATD.B-T is an acquisition story and trades at a higher multiple, so she would prefer L-T. ATD.B-T has been benefitting from the lower gas prices as customers then spend more in the convenience store.

Move from A into B shares? You are better off to be in the more liquid one that everybody is investing in, which is this one. This company has executed extremely well on all of its rollup acquisitions. He sees nothing but positive on a technical perspective. Seasonally he sees strength in January and February on the retail side.

This had organic growth, but has also been making acquisitions. Probably has a lot of room to go on the acquisition front. Oil companies own a lot of convenience stores and are probably looking at ways to streamline. Couche-Tard continues to make acquisitions and then derive synergies through that business. They reduce costs and it drives their numbers higher. Last quarter had great numbers. Their last acquisition was in Ireland, which is one more that they are going to be working on.

It is a gorgeous chart. An upward trend since 2014. It is testing its all time high. Relative strength is positive; it is above its 20 day average. You have to buy more of it. He would not be overly concerned about seasonality in this one because you have a sustained uptrend.

One of his larger holdings. It has been one of those stocks that people seem to want to perpetually sell because it is always going up. That is a poor reason to sell. They keep beating on earnings. Very strong 25% ROE. Scores in the top 10% for him on value. Momentum has always been strong. Quality management.

Has done very well. She is not a shareholder because of valuation. It always seems to be a little too expensive for her, as she is more value oriented. Just reported a very strong quarter. They are benefiting from margins on low fuel prices as well as the incremental dollars that are spent in their convenience stores. The acquisition they did last year is working out quite well. The time to step in is when they have a stumble and the stock pulls back 10%-15%.

He likes it. You want to buy it when it dips to $51. It is a growth by acquisition play, but the farthest thing from VRX-T. ATD.B-T is very good at making acquisitions. It is a slow and steady grower and there is some organic growth.

(A Top Pick Feb 13/14. Up 20.3%.) They are making acquisitions in North America, but also in Europe. Their system for consolidating smaller companies is a great model.

Growth by acquisition and have done a pretty good job. Their last acquisition created some negative thoughts, but in terms of their long-term mentality, this was an opportunity. They have great expertise in integrating.

There was a management change and he bought more when it dipped. He has had a very good run on it. He continues to like it and will continue to add to it. There are genuine economies in their roll up strategy.