The Second Cup Ltd (SCU.TO) Buy, Sell or Hold

The Second Cup Ltd (SCU.TO)

0.88

-0.00 (0.00%)

as of Sep 30, 2020, 8:00:00 pm Market Open.

9 watching

DON'T BUY

Coffee and tea chain and light snacks. This space is incredibly competitive. 13% yield. Come 2011 the restaurant royalty trust will have even less tax shields than businesses with a lot of capital assets.

BUY

$10.5 target price. Sales performance is extraordinary. Their cash flow goes up 1 for 1 with inflation. Not likely to be a buyout target.

DON'T BUY

Have recovered quite nicely from the government’s income trust announcement. Good management team, but are in a very competitive space. Better trusts available.

PAST TOP PICK

(A Top Pick May 1/06. Down 7.3%.) You should get 5% growth in distributions each year.

COMMENT

Government has not been clear on tax implications. Very retail focused. Good cash flow. Have been cautious on this one. Had some problems in closing under performing stores. Expect that the management will stabilize this.

HOLD

Has taken a hit because of the change of the tax structure on trusts. Currently paying $1.04 in distribution and this should grow by 5/10% a year. In 4 years, it will probably be $1.30. Minus tax it will be around $.90 which will be taxed as a dividend. Doesn't expect it to do well in the short term.

BUY

Well run. Relatively small cap, so if it is your only holding, you would be better off with the larger trust.

TOP PICK

A very stable business. 9% yield plus they are growing. Same store sales growth is about 6.5% which means they should increase for distribution by about 6.8%.

WEAK BUY

Believes it will do okay. They are watching it. Pay out is around 95%.

BUY

A very stable business. The chief factor is the comparative store sale growth. The latest result was 4.6% which is good. Expects them to grow their distribution by 4/5% per year.

PAST TOP PICK

(A Top pick July 18/05. Down 2%.) A very stable company and doesn't expect any big jump in share price in the next year. Expects distributions to eventually increase, but while you're waiting you are gettin a nice distribution.

TOP PICK

2nd Cup Coffee shops. Stock may not do great percentage wise, but the risk is very low. The company doesn't own the stores, but gets a % of the top line, so there's no expense, just revenues. Yield of 9.1%. New management should increase sales.

Showing 16 to 27 of 27 entries

Most Recent Experts

Jim Cramer - Mad Money

CNBC

John Zechner

J. Zechner & Assoc

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium

Keith Richards

ValueTrend Wealth Management

Joe Terranova

Virtus Investment Partners

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Summer Sale

The Second Cup Ltd (SCU.TO)