Stockchase Opinions

Ravi Sood XS Cargo Income Fund XSC.UN-X HOLD Nov 17, 2006

Fairly valued. Their business model is not impacted by the tax changes for income trust.
$11.000

Stock price when the opinion was issued

specialty stores
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DON'T BUY
A retailer that buys products from bankruptcies, foreclosures, etc. He avoids retailer income trusts.
TOP PICK
(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.
TOP PICK
Management owns 50% of the company. A growth business having started with 15 stores and now up to 25 stores. Saturation point is about 70 stores.
SELL
Not a fan of the retail sector nor of this particular company. Fully valued at this price.
PAST TOP PICK
(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.
DON'T BUY
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.
PAST TOP PICK
(A Top Pick Feb 10. Down 6.7%.) Management owns half the company. A growth story. Still a favourite. Great long-term story.
BUY
Specialty retailer. Very similar to Liquidation World. Sales per square foot are off the charts. Good growth.
BUY
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.