According
to The Wall Street Journal – April 21, 2016 the Analyst Ratings on the TSX
listed Alimentation Couche-Tard Inc (ATD.A) was currently
11 buys, 2 holds and no sells. Three months
ago it was 12 buys, 2 holds and no sells. We all know that a “hold” means they
just don’t know.
A
few posts ago I observed that on BNN’s popular Market Call
shows there was a growing tendency for the callers to ask the host for the “street
consensus” in addition to the guest opinion on a particular company. The
problem is the street consensus is usually a “buy”, a “hold” and rarely a
“sell”.
One
Market Call guest correctly described Couche-Tard to be “One of the darlings of
the TSX via growth by acquisition.”
The
fundamentals I see are based on common sense – first the stock was over loved
and over-owned and secondly when you grow by acquisition – each one has to be
bigger in order to propel the growth story..(sort of like the Valeant story)
Technically
the “B” shares are trading below both the 50 and 200 day simple moving averages,
the stock is underperforming the TSX Comp and the S&P500 and the point
& figure has peaked and the down O’s sit on key support at $55
Our
weekly bar chart of Couche-Tard spanning about 100 weeks displays the relative
perform vs. the TSX Comp and Couche-Tard’s 40-week moving average. Clearly the street
consensus and the technical picture do not agree.
Posts
2 comments:
I agree . One of your peers, Hap Sneddon had to sit and listen while 6 straight callers asked for consensus . I finally tweeted to them that they need to take this to a different show as we tune in to hear the guest's opinions.
Hi Dave
Maybe BNN should have a Street Consensus show
We need consensus on that
Bill C
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