Stock Watch - Stock Picks — Alimentation Couche-Tard and Alibaba
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Jean Pierre Verster from Fairtree Capital chose Alimentation Couche-Tard as his stock pick of the day and Deryck Janse Van Rensburg from Anchor Securities chose Alibaba.
Verster said: "My stock pick is based in Canada, Quebec and the company is called Alimentation Couche-Tard, and a couche-tard is apparently a night owl. Now this company owns many 24/7 convenient stores in Canada and are also integrating US based stores at the fueling stations across the US, as well as Scandinavia and the Baltic countries. When one goes to a fueling station you don't really worry about the price of the goods purchased so the company has very nice profit margins. I don't see the Internet and Amazon dis-intermediating convenient stores because it is about convenience and it is an impulse purchase. So they have a very wide mote, good management team, long standing business with the founder still as Chairman and it's listed in Canada which sounds like a good idea."
Janse van Rensburg said: "I'm going with Alibaba, they recently released 4th quarter numbers as it is a March year end. Doing a deep dive analysis into those numbers they delivered organic growth of around 39%. A lot of that was contributable to the cloud services component of the business. Their share price has been flung around with external factors like trade wars and tweets from Trump but that in its own setting often gives long term buying opportunities. Even at current prices I think that this company is well placed to deliver good growth looking forward."
Verster said: "My stock pick is based in Canada, Quebec and the company is called Alimentation Couche-Tard, and a couche-tard is apparently a night owl. Now this company owns many 24/7 convenient stores in Canada and are also integrating US based stores at the fueling stations across the US, as well as Scandinavia and the Baltic countries. When one goes to a fueling station you don't really worry about the price of the goods purchased so the company has very nice profit margins. I don't see the Internet and Amazon dis-intermediating convenient stores because it is about convenience and it is an impulse purchase. So they have a very wide mote, good management team, long standing business with the founder still as Chairman and it's listed in Canada which sounds like a good idea."
Janse van Rensburg said: "I'm going with Alibaba, they recently released 4th quarter numbers as it is a March year end. Doing a deep dive analysis into those numbers they delivered organic growth of around 39%. A lot of that was contributable to the cloud services component of the business. Their share price has been flung around with external factors like trade wars and tweets from Trump but that in its own setting often gives long term buying opportunities. Even at current prices I think that this company is well placed to deliver good growth looking forward."