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Canadian Tire Corporation offers a broad range of products and services through retail brands and banners in Canada. The company has 488 Canadian Tire stores. They also own PartSource, Mark’s Work Warehouse, SportChek, Sports Experts, Forzani, Sport Mart, Atmosphere, National Sports, Athletes World, Hockey Experts, Sports Experts, Intersport, S3, Nevada Bob's Golf and Fitness Source. The company was founded in 1922 and is based in Toronto, Canada.
[PostStockWidget stock_valuation="" pricetype="live" static_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'CTC-A.TO'" symbolprices="84" div_align="right"]
On November 12, 2012 we signaled a low valuation in CTC.A under $69.00 at $68.32. Our initial target at that time was $80.00.
Last week, the company announced positive earnings as well as the surprise that they would spin off their real estate into a REIT to unlock value for their shareholders. While overall we feel this move is quite positive, the precise value of the real estate proposition is difficult to quantify and it is planned to occur later in the second half of 2013. We believe it would be wise to lock in profits and cash in at current levels.
Total Return for this trade reached 24% including dividends.
Note: This is just another example of why it pays to be an objective investor – one should avoid cherry picking the list of Purple Chips because you never know which investment will be your best performer. Consistency is the key to success.
EXIT CANADIAN TIRE AT $CAD 84.00 (CTC.A, $CAD 84.00)
