October 13, 2015

The S&P 500 was down 0.7% and Toronto was down by 0.9%.

Canadian Western Bank was down 4.9%, CN rail was down 3.0%, AutoCanada was down 4.5% and Melcor was down 2.9%.

The Q3 earnings season is underway and Wells Fargo will report tomorrow.

Raymond Pare, the CFO at Alimentation Couche-Tard has resigned. He was a key executive and had been with the company for 13 years as an executive. He was CFO for the last eight years and a VP finance prior to that. He owns at least 45,000 shares or some $2.7 million worth and it may be at least twice that. The insider holding report is difficult to interpret. He may have felt somewhat hard done by as the four founders of Couche-Tard hold vastly more shares and have reaped truly staggering wealth from Couche-Tard.

My assumption is that Pare had a conflict with the new CEO who took over after the main founder Alain Bouchard stepped back from the CEO role. The new CEO also holds many more shares than Pare and so Pare may have felt he was not being treated fairly.

Couche-Tard’s success is mostly due to its operations and not to any magic in financing and so I don’t think this will be a major problem for the company.