April 10, 2019

On Wednesday, the S&P 500 and Toronto each rose about 0.35%.

Linamar was up 1.7%. Dollarama was up 2.0%. CRH Medical was up 3.0%.

AutoCanada rebounded 4.1%. An interesting report today revealed that sales at Canadian new car dealers actually rose slightly to a new record in 2018. New vehicle sales were down but used vehicle sales were up and the service centers also had gains. Possibly due to its concentration in Alberta and its particular mix of brands, AutoCanada suffered a 3% same-store sales decline. But its more serious problems relate to its newly acquired U.S. operations. Checking insider trading, the only recent trade is that the departing CFO (who is leaving on very good terms and who was part of the new management team) sold all of his 30,000 shares on March 20 at $11.45. Not exactly a vote of confidence on his part.

After the close, Canadian Western Bank announced that they have obtained permission to buy back 2% of their shares. Canadian Western Bank had never bought back any shares until it bought back 2% in December and January in response to its low share price. At their annual meeting last week, I asked if they might back more shares. I did not get a clear answer then, but now I have one. In some cases companies announce buy backs but never follow through. In this case I think we can expect to see them buy up the 2% quite quickly. I view this as a sign of confidence on the part of management.

Also after the close, Costco announced yet another month of strong same-store sales growth.

Scroll to Top