August 1, 2012 Comments

The market was disappointed that the Fed did not come through with some economic stimulation today. Whatever, the FED has done quite enough meddling. I think it is tomorrow that the hope turns to the European Central Bank to do some meddling.

Overall the market did not react much to the disappointment.

We’ll see what tomorrow brings…

I am eagerly awaiting a number of earnings reports due out around the end of next week. Canadian Tire in particular. They already pre-announced they would take a hit on closing some of the Forzani stores they bought. But other than that I am hoping they have done well. If not then I hope someone lights a fire under then with a takeover offer, that would be nice but I guess is not in the cards.

I don’t know why Rona ever opened big box stores. Did they really think they could compete with Home Depot? I think Lowe’s should just buy their big box locations, after all they were closing about 8 of those so might as well sell. I don’t see why Lowe’s would want their many smaller stores. (Although sometimes those small stores are the only game in a small town and can be lucrative).

Speaking of Retail, when I looked at RioCan the figures show that they have some leases with Target (former Zeller locations). And sure enough those leases have a good number of years left and are below market. That is why Target paid $1.8 billion for those leases. But I still think that was a Huge amount of money. And how incompetent was Zellers that they could not make decent money even with the low cost leases? Far as I am concerned Zellers were junk stores and should have turned themselves into giant dollar stores. Oh well, too late now.