THI on TSE - The Real Donut!!

JimmyHoJimmyHo
in Off Topic Lounge
anyone get in on the initial public offering for Tim Horton shares? anybody thinking about taking the plunge? better hurry, shares are already up $10 to $37 in early trading.

PokerJAH

Comments

  • BBC ZBBC Z
    If you are buying THI, it's either because you are very old and want a low risk stock that will pay a good dividend or you are an idiot that buys based on hype.

    THI isn't a growth stock, so don't look for a doubling of it's value any time soon. They have limited expansion abilities. They can either go to the states and try to compete with starbucks who already own the prime locations or they can go to europe and get killed by the fact coffee isn't a part of the culture.

    Is Tim's gonna fold in canada any time soon? Nope, but can they really grow the canadian market?
  • witchdoctorwitchdoctor
    Timmy's is expanding in the US...they are opening 500 new locations in the next 12 months....according to the news anyways.
  • WaterLooserWaterLooser
    I agree with BBC (ooh, I feel dirty ;) ). If you have the $$ to day trade this go for it. Ride the quick roller coaster then get off! It is a Canadian Culture thing, it will probably stay around and have solid financials for years, but growth is limited.
  • JimmyHoJimmyHo
    maybe an income trust would have been better.  I agree it seems pretty overpriced based on today's current activity, but there are other stocks that trade at pretty high multiples (i.e RIM) that may never stand up to the expected hype.  So you never know, it could make it to $50 at some point. What I don't understand is that Wendy's shares are down $2 US and it still owns 85% of THI. You would think that since the FMV of THI has increased, this would be reflected in the price of the Wendy's shares. Anybody understand this correlation?
  • pokerdropokerdro
    BBC is on the right track. This stock will/has gone up on hype and the money makers on this are all the initial instituional investors and underwriters. Sure you may be able to get a buck or two but I wouldn't expect google type returns. The company is solid and the growth is somewhat questionable as the Canadian Market is prettty saturated by, well them. The U.S. market will be much like Krispy Kreme's venture into Canada (a failure).
  • JimmyHoJimmyHo
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    "Now the leg, huh!".... kind of off topic, but I love that movie!
  • BBC ZBBC Z
    but there are other stocks that trade at pretty high multiples (i.e RIM) that may never stand up to the expected hype.

    Well the point is that RIM has the POTENTIAL to become a massive player in an industry that will generate billions of dollars of profit... THI doesn't quite have the same upside.. Stock prices aren't based on what you did for me yesterday. They're based on what you did for me today and what the collective market thinks you will do for me in the future.. The key is figuring out where the market is overreacting (Cough cough Cryptologic cough cough)*

    *Yes, I own it.
  • AirportClubAirportClub
    On the news today, they said the Tim's Corporation is 25% of the Canadian Fast food market. I know they own Wendy's but you really think between the two they get 25% of the fast food market in Canada. Seems like that % is too high, but hell I just run a poker club, what do I know except they make a good cup of coffee.

    Shane
  • Hork42Hork42
    AirportClub wrote:
    I know they own Wendy's

    Pretty sure it's the other way around...
  • ScoobyDScoobyD
    Seems like that % is too high,

    I'm actually shocked it's not higher. Strictly in terms of locations, off the top of my head I can name at least 12 different TimHo's locations in Waterloo alone... I don't know if I could even come up with 12 other fast food locations TOTAL.
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