Last week, I wrote about Loblaws. They reported positive earnings and they planned to spin off their real property into a REIT. As a result, their share price jumped.
I could copy and paste for Canadian Tire. They reported better than expected earnings for the prior quarter and they plan to spin off their real property into a REIT. As a result, their share price jumped. One difference is that the corporation plans to retain 80-90% ownership of the REIT, which will be half the size of the Loblaws trust.
Since the share price had been consistently rising, and was already well above its pre-2008 level, the jump in value has pushed its momentum up into the top performers of the TSX.
The company faces some headwinds, being in retail in Canada. At the same time, they have a new management team which has been in place for almost a year. It seems that the company doesn’t get a lot of respect, so when there is good news, it’s easy to see why the stock reacted as though it were a pleasant surprise.
Last week, I wrote about Loblaws. Although the share price has drifted back a little, it still presents a positive outlook. The extent to which it could continue to rise depends on how many people take more time to do their research and eventually choose to buy, versus those who have owned for a long time and may be taking profits.
About five weeks ago, I wrote about Gildan Activewear. At that time, it was trading around $40. It’s now around $43, up 6.8%. It’s no longer in my top five, but it maintains strong, positive momentum, just behind Loblaws and Bombardier (which I’ll probably look at next week).