Tuesday, August 21, 2007

Tim Hortons Inc update

Well, just as I thought about selling THI - Goldman Sachs came out and cut their rating for Tim Hortons shares. This is not good news for me as it is the largest position. In the article they say that shares have gained about 25 percent in the past 12 months. However, this is the NYSE shares, the ones listed on the TSE are actually down from where they were in January, whereas the NYSE 12 month chart looks like a mountain.

Ideally, I should know the difference between the two listings and be able to differentiate the value of each share. However, to be honest, I am not sure. However, they are both trading at P/E's of 26. However, similar companies such as McDonalds, Burger King, Star Bucks are all trading at P/E ratios of 29, 33, 34 respectfully. Tim's same sale stores continue to grow quarter after quarter so I think their P/E is being traded a little low and despite Goldman Sachs cutting the stock, the price didn't move much.

What do you guys think of THI?

No comments: