Tim Hortons THI
- From: "karl" <kona-karl@xxxxxxxxxxx>
- Date: Wed, 31 May 2006 09:23:26 -0400
The stock is finally getting over the irrational exuberance of its IPO,
down to C$29 / US$26.40 level.This is getting close to a reasonable price
level.
The Pros of THI:
- Strong management.
- Strong SSSG
- Market dominance in Canada
- Strong Balance ***
- A well thought out US expansion plan
- As a minor plus they plan to declare a small dividend.
Cons:
-Cracking the US market in a big way. Usually a challenge for Canadian
retailers.
-Dunkin Donuts. They are the most direct competitor in the US and they are
BIG.
-Market saturation in Canada though they do have opportunities outside of
Eastern Canada.
Still waiting to see how things go when Wendy's spins off the rest of the
stock but THI is looking more attractive.
.
