Alimentation Couche-Tard (B)

ATD.B-T

Why did it split? He owns this one and it has done well over the long term. He would buy again and it is fairly defensive. The idea of splitting allows smaller investors to get in and that is probably the idea here. He does not think it is a problem they split.

The stock was split for 2 for 1. They have moved up through the $60 resistance, and now there is momentum. At these prices, he would take profits.

(A Top Pick Sep 13/18, Up 26%) Has strong fundamentals, a good runway for growth and a protective moat. It's been an excellent growth story he bought 20 years ago. They'll likely expand to Asia. They are refining their digital marketing. Their earnings today beat the street.

It is a Canadian success story. If you look at the returns, it has been very solid. They borrow, buy, pay off the debt and then away they go. It is positioned for the next decade when electrification comes in. The model still works. It is so well managed – that is the key. (Analysts’ price target is $90.09)

An excellent business and a real consolidator, though they're overdue for a new one. A great long-term performer. Have a long-term view and hold this.

A great company. They need to cotninue acquisitions, and have opportunities here and abroad. If they do (and he expects it), they will continue to do well. This is especially good if you have a five-year horizon.

A secular growth stock he's long owned. The business model is price sharply on fuel to drive traffic, then lure customers into modern shops to buy wide-margin cigarettes, coffee and candy (3-5x better than selling gas). They do well buying businesses and synergizing them, too. But they are pivoting more to organic growth with digital loyalty for instance. (Analysts’ price target is $90.00)

He thinks their investment into cannabis will be phased in over time, but could be interesting. They have expanded well. It trades at 4 times book and close to 19 times earnings, which creates a high bar for future growth. He wonders if the margins and volumes in the convenience stores has the ability to sustain that growth. He would be taking profit here.

(A Top Pick Jul 31/18, Up 34%) Great management, but it is getting too expensive at 22 times earnings. A couple of weak quarters has caused a recent pullback. They are good at what they do. Still a core holding, but he may reduce his position soon.

(A Top Pick Jul 27/18, Up 34%) Most recent quarter a bit soft. But focus on the same store sales number, that's the important one. In a decade, they haven't issues shares once. They'll be able to grow through acquisitions and by selling more products. Could still put new money to work here today.

This little company has growth around the world. The next leg of growth may be in Europe. 70 percent of revenue comes from food. Now they are focusing more on purchasing and making acquisitions. The next leg of growth could be Asia. They get good margins on their car washes. It should continue to grow. They want to double in 5 years. (Analysts’ price target is $85.13)

The gas stations and convenience stores have been under pressure by the environmental groups. Although electric vehicles are coming, it is a very small fleet and will remain small for quite some time. He would continue to hold.

Definitely wait for earnings. Gasoline margin was quite good, and that is a major determinant of earnings. Likes it here. Has had a good run, so not sure if today is the day to buy. Still room in Europe to acquire. Dedicated resources to improve fresh food offerings, and those margins are quite lucrative.

He thinks it is quite safe. There is always risk on new acquisitions, but he believes in their de-leveraging strategy.