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

(A Top Pick Oct 16/13. Up 30.59%.) This had a 3 for 1 stock split. Started to drop down in rankings, and he was looking for a higher growth opportunities, so he sold his holdings.

Thinks they have been looking for more acquisitions, but are disciplined. They are not going to do deals that won’t do well. A fantastic company. Runs an extremely tight ship. Likes their European exposure, and feels there are probably a lot more acquisition opportunities in Europe. If they do deals there, he is sure the market is going to like it.

Great stock chart over the last 5 years or so. Has been a great momentum stock. When you get a momentum stock like this, you have to ask yourself where this trend ends. The shortest trend lines are not being tested right now, so the trend is up. This is more of a momentum/growth story, but he is more of a value investor, and he doesn’t see a lot of value right now.

A good growth company for the long term. He doesn’t own it because it is not a value company. They have growing international exposure.

Stock ran up on speculation of a supposed US acquisition, but when they were vetoed on that, it took the wind out of the sail. Company had rattled up some debt to make some acquisitions in Europe, so its balance sheet is getting big. Doesn’t think there is a problem with this company. Management team has been exceptionally solid. If there was some weakness, he wouldn’t be concerned about adding to your holdings.

(A Top Pick Oct 16/13. Up 26.9%.) This had a 3 for 1 stock split. The rate of ascent on earnings has changed and was starting to slow so he sold his holdings. Great company and continue to do great things.

A tremendous Canadian success story. International acquisitions. The stock is gone straight up. Petty expensive right now, priced to perfection. The kind of stock that if they have a stumble, investors could get hurt in a fairly serious way. Has always worried about margins on gasoline and tobacco products which make up a good portion of their sales. If he had money in the stock, he would take money off the table.

This is more of a growth story. Made some acquisitions in Europe. Has done well but is relatively expensive.

Thinks it’s expensive and the internal growth is not there, but their strategy is to grow by acquisition. It could easily be 20% higher because of an acquisition they make in the future, so don’t get out of it. On his radar screen.

(Market Call Minute) Too rich. Management has done an excellent job, though.

Always had thought it was a lousy business, low margin convenience stores, but this one has done an absolutely outstanding job. The only successful Canadian retailer that has been successful in the US. Earnings keep driving higher. He could never buy it at the valuation it is trading at, but kudos to management.

(Top Pick Oct 16/13, Up 33.32%) The founder stepped down. It is a growth by acquisition story and there are always questions as to whether they can pull off the next one. Management has a great track record. There is still room to go.

Very good business. They have been a consolidator in the convenience store/fuel station business. His concern is that the share price is quite expensive at about 19X earnings.

20 times PE, 17 times is historical average. Be a bit careful.

A example of one he would not generally hold. It’s growth by acquisition. He wonders where future growth will come from. It is not what he is looking for.