Topic: How To Invest

The Successful Investor Hotline – Friday, November 3, 2023

Article Excerpt

CANADIAN TIRE CORP., $144.81, Toronto symbol CTC.A, is a buy. Investors benefit from the company’s 503 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most of the locations. The company’s other operations also enrich its outlook. They include 161 stores operating under the PartSource (auto parts) and Party City (party supplies) banners. Canadian Tire has several other major retail chains: Mark’s sells casual and work clothing through 379 stores; and the Sport Chek Group sells sporting goods and athletic wear through 370 outlets, including Sport Chek and Sports Experts. The company also provides a variety of banking services, including savings accounts, guaranteed investment certificates (GICs), insurance and credit cards. In October 2014, the company sold 20% of its Canadian Tire Financial Services business to Bank of Nova Scotia (see below) for $476.8 million. Canadian Tire has now re-acquired that 20% stake for $895 million. As a result, it will record a one-time charge of $5.88 a share against…