(A Top Pick Dec 9/05. Up 4%.) A real growth opportunity. Have the potential to have 70 Cargo stores across Canada. The profitability of these stores is staggering. Incredibly high sales per square foot. Would still buy. 50% of it is owned by management. Extremely high ROE.
(A Top Pick Feb 10/06. Down 2.4%.) Continuing to open new stores. This is a growth story. Ended up 2005 with 24 stores. Saturation point in Canada is about 70 stores.
He tends to stay away from retail. Too dependent on weather and consumer tastes. Doesn't think it's a great business for an income trust for the long-term.
Interesting turnaround play. Got itself into some trouble a couple of years ago and thinks there is still some room to run in this one. Good management. Coming up on his radar screen now.