Canadian Tire opened for trading at $86 but then quickly rose to a high of $90.49 and closed the day at $89.45, up 7.1%. The earnings were decent but an added bump came form the fact that they will seek a strategic partner for the credit card operation. In general its seems like the company is trying to do various things push the share price up, namely the REIT and this partner for financial services. I plan to update the analysis within a few days and I suspect it is still a reasonable buy at this price. I did however sell about 25% of my shares at around $89. I may regret that later but I may get a change to buy back at $83 or so if the stock drops. Usually over time stocks do pull back and don’t advance in straight lines. I had earlier sold some shares in Canadian Tire at $83 just to be prudent since I had such a large position.
The S&P 500 rose 0.4% while Toronto rose 1.3%.
Most of our stock picks were up today. The Q2 earnings have come in fairly strong for most companies both in Canada and the U.S.