September 15, 2020

On Tuesday, the S&P 500 rose another 0.5% and Toronto was up 0.4%.

Restaurant Brands was up 3.1%.

AutoCanada was down 3.5%. As mentioned, I took advantage of its higher price yesterday to sell about 40% of my shares in this company. I was over-exposed to the company as it recently represented about 8% of my portfolio. That was reason enough to reduce it. Looking closely at it today, I don’t regret selling. It’s price rise seems over-done. It has done very well operationally with surprisingly good sales numbers in the face of the pandemic. But it has also continued to write off various assets. And I certainty don’t like the way that many of the write-offs are somewhat dismissed as being “non-cash”. They do have a hard focus on building up cash and reducing debt. But when that is done largely by selling off assets in sale-and-lease-back transactions it is not that impressive.  I will post an update for AutoCanada probably tomorrow. I am inclined to reduce my position further.

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