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?

Thinking about selling Tim Hortons Inc (THI)

As you can see, Tim Hortons is currently my largest position in my portfolio. Just as the market in general is volatile recently so has THI. It goes up a couple of percentage points and then just comes down. This position is so big that I am actually trading on margin. Originally I thought that Mastercard was going to help their sales (with no signature they can probably serve customers quicker than when they have to make change). However, a reporting period has come and gone and they reported good numbers but the stock did not budge. Perhaps it was already priced into the stock. So the decision I have to make is should I hang on and believe in the long term outlooks of THI or to get this dead money out and into something that can earn me something.

What are your thoughts?