Based on its name, you might be forgiven for believing that Canadian Tire Corporation was a seller or manufacturer of tires in Canada. While the company does sell tires, it also sells general merchandise, including stores focused on apparel and sporting goods. In fact, it was the 6th largest retailer in Canada last year(by revenue), and 107th largest globally. It is Canada’s largest sporting goods retailer. Q1 retail sales were C$2.4 billion. The company also has a large financial services division with more than four million Canadian Tire Options MasterCards in circulation.
Investors really like the move, with the stock up over 13% today, following the announcement.
We don’t spend a lot of time looking at foreign companies and shareholders will continue to hold only one security, but we think this is a company and situation that bears further research.
Disclosure: Author has no investment in any stock mentioned. In fact, he had not heard of this company until today.
Related articles
- Canadian Tire reveals plan to launch $3.5-billion REIT this year (business.financialpost.com)
- Canadian Tire to offer shares in new $3.5 billion REIT (thestar.com)
- 5.09.13: Canadian Tire follows Loblaw’s lead with real estate spin-off (business.financialpost.com)
- How to get a 13% hike in your share price: Announce plans to form a REIT (business.financialpost.com)
- Canadian Tire’s hidden value gives it a competitive advantage (theglobeandmail.com)
