November 9, 2017

On Thursday, the S&P 500 was down 0.4% and Toronto was down 0.1%.

Canadian Western Bank was down 1.9% to $34.37. With oil having recently risen to the $57 level I suspect that they will report good results for their Q4 which ended October 31.

Canadian Tire was up 3.1% to $162.42 after posting another strong quarter.

After the close, AutoCanada reported strong results for Q3. The stock price reaction tomorrow will depend on whether the result was better than anticipated or not. I would think the price would rise on the news.

Also after the close, Liquor Stores N.A. reported results. This company is no longer on our list having last been rated as Sell on November 14, 2015 at $8.55. Once again this quarter, the company reported a loss.

The company has been reducing inventory. They hope to win back market share. I don’t think they can compete at a sufficient profit level. They face low-cost high-volume competitors in Costco and SuperStore. In addition there are a couple of small chains that have been very nimble and also pursue high volume lower price strategies. Liquor Stores N.A. has long appeared to have far too many stores in Alberta. In my area they have several small stores that appear to be very quiet in terms of sales traffic. Despite the possibility of a recovery here, if I owned this, I would Sell and move on.  They have a tentative deal to sell their Kentucky U.S.A. stores. That will provide cash but I have not seen any indication if they will book a profit on the sale.