Canadian Tire Corporation Ltd. (A) (CTC.A.TO)

This is one of the areas he thinks people might rotate out of. They are continuing to execute well however. People are waiting for an acquisition of some sort. He hopes it is in Canada. It has been a great story from the beginning of time.

$121.85 model price. He would wait until about $110 to buy it. It rallied to EBV +3 and it became resistance.

It has interesting characteristics from a retail perspective. It has been pulling back a little bit here. It has come down to support level and that is quite positive. If it shows some more support it is a good place to step into it.

He is a little frustrated. Management has done a very good job in a competitive environment, but valuations are low. At current prices, this is a Buy.

This had a great 2014-2015 and the stock moved up a lot. Money has not rotated back into the sector yet. Amazon (AMZN-Q) is having an impact on retailers everywhere. Thinks a lot of investors are wondering how well these companies are going to do in that environment.

(Market Call Minute.) A very strong operator, but richly valued.

This ranks almost dead centre in the middle of all the Canadian companies he looks at. The price has been dropping, so technically it ranks in the bottom 20% of his rankings. He would like to see an improvement in both rankings. Longer-term, this is a great company. If you are more into the value camp, you could start looking at this for a 2-3 year timeframe.

Their exposure to the economy has been better than the GDP numbers. There are concerns about their recent shift in management. Also have been pretty good on the digital side of things. They own some good brands, so there is diversification. Its really a question of exposure to the Canadian consumer, and he prefers the US consumer.

This company has done really well in a tough retail environment. They are also getting the benefit of the move up in the REIT market with their Canadian Tire REIT. A well-run company. Management has shown a good track record over time, which he expects will continue.

This has been the star of Canadian retailers, and has held up very well. It has done extremely well over the last number of years despite retail undergoing the biggest shift in technology in the way people shop. They have a new CEO, who he believes is going to take a longer-term focus and position them for going forward. It still looks a little expensive to him. If he saw it correct 10%-15% from here, he would be taking a really serious look at it.

He likes the name. Overall it is good. There is some weakness in the consumer, but in general it is one of the areas that has held up really well, in both Canada and the US. The old CEO becoming the new CEO is something that would be a good catalyst. With any retailer, the Internet is a huge force, and Amazon (AMZN-Q) pretty well owns it. A lot of retailers are suffering, but this is not one he would think was most problematic.

(Market Call Minute.) The stock has done very well, so wait for a pullback before buying.

Just sold his holdings. If it got back to $106 again, he would be a buyer. Feels this is really a trading stock, not a buy and hold. His model price is $122.74.

Trading at about 15X earnings, which is not too bad compared to a lot of other retailers, so from a value perspective it seems okay. Has never been able to wrap his head around the different types of companies they have, whether it is the sports type or the Canadian Tire brand itself. With the real estate, that has pushed the shares up a little. He likes it here, but just has not bought shares yet.

Great Canadian company and it broke out. It is a buy.