Couche-Tard moves on Carrefour

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Dan, what do you think about Couche-Tard’s move on the French grocery chain? I did take advantage of the big dip in ADT around lunch and strengthened my position. I believe it will pay off over time, though I worry a bit about the Canadian company taking on so much more debt. Do you have any insight into the French governments willingness to allow a foreign company to take buying an essential stock? By the way, I made a good profit when I sold almost 4000 shares of CNQ last week. I bought the stock at $12.75 last March. Sure I’m glad I hung onto it!

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Asked on January 13, 2021 12:26 pm
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That's some nice profits regarding CNQ!

Regarding the French government, it's going to be very interesting here. There is a chance they could step in.

This acquisition is puzzling to say the least for Couche-Tard. It's not necessarily its space. I responded in a few questions saying that investors may be cautious as the company is diverting away from what it's good at, which is high margin gas and convenient store sales.

Yes, the company will take on more debt if this deal goes through. But, if we look on the bright side, the cost to borrow right now is insanely cheap. The company has to be factoring this in.

I trust Couche-Tard's management. They've been arguably one of the best operated companies in the country for a long time now. Long term, investors won't regret buying at these levels.

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Posted by Dan Kent
Answered on January 13, 2021 5:04 pm
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