ATD Takeover

For those curious, or for those who missed it, here was our comments in the e-mail sent out this morning as well:

Early this morning, it was announced that Couche-Tard was in talks with Carrefour to buy the French supermarket company for $20 billion.

News of this has sent Couche-Tard (TSE:ATD.B)'s share price falling by nearly double digits, a drop we feel is significantly unwarranted.

The most logical explanation we have for the drop is the fact that investors are nervous about Couche-Tard branching off from what it's good at, which is high margin convenient stores and fuel sales, to uncharted territory in supermarkets in a foreign country.

However, this is one of the best managed companies in the country, and if this acquisition does go through (it's still in early talks) the company will establish itself as an even bigger global giant. Carrefour is currently Europe's largest retailer.

We sent out an e-mail yesterday when Couche-Tard hit oversold territory, stating we felt it was a strong opportunity. We still feel the same, in fact more strongly about this company now that it's trading at an 18% discount to late December highs.

However, this also does drive home our averaging strategy. I took a half position myself yesterday. This drop may allow me to fill my position on Couche-Tard at a cheaper price range.

The markets don't like the companies preliminary talks to buy French supermarket giant Carrefour.

This is uncharted territory for Couche-Tard. Supermarkets are NOT gas stations and convenient stores. Smaller margin businesses.

However, this deal has the potential (if it goes through, again we're very early) to make Couche-Tard a global giant.

This is one of the best managed companies in the country. We felt it was a solid opportunity yesterday, we feel it's an even better one this morning.

Hello, i ask pretty much the same question yesterday just do a quick search for the ticker symbol to see what they ad to say basically still a great investement to my understanding