March 15, 2022

Tuesday was a bounce back day for the markets as the S&P 500 rose a hefty 2.1%. Toronto, with its heavy exposure to oil was about unchanged.

Notable gainers included: West Fraser Timber up 4.6%, Shopify up 7.6%, Starbucks up 4.8%, AutoCanada up 5.9%, and Toll Brothers up 4.4%.

After the close Alimentation Couche-Tard released its fiscal Q3 results which were very strong. I do notice that their gasoline margins are very high. About double what they were a few years ago. That does give credence to those who suggest that gasoline companies are “gouging”. There could be a risk of government intervention or just a risk that margins return to more normal levels. Couche-Tard has a fantastic history and is well managed. But there are always risks including the move to electric vehicles which will charge mostly at home. I like holding this company. But if the price rises tomorrow I may lighten my position to raise cash and reduce risk. 

Melcor Developments reports after the close tomorrow. I’m hoping they had quite a strong Q4. And I would think that their outlook for 2022 should be very strong as the Alberta economy has improved. The latest home start data was released by CMHC today. While the annualized home start figure was strong it was actually a decline from February of last year for single family homes. Alberta single family starts were up 8%. That’s good compared to the national average where single family home starts were down 14% versus February of last year.  But 926 single family starts for the whole province is not that high. Seasonally it will het higher starting next month. 




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