canadian tire stock
WHAT IS CANADIAN TIRE
Canadian Tire is basically a growing network of different types of interrelated businesses. Each of these businesses leverages the privileged assets and the core capabilities of other. For the past many years, Canadian Tire has been striving to meet the expectations and needs of its customers by offering unique packages of price, service, location and assortment. As far as the number of employees is concerned, there are about 50000 employees that are associated with this group. Alike other listed companies, the Canadian Tire have also many shareholders, many of which are the North American retailers.
One of the businesses, the Canada Tire Retail is the Canada's leading retailer of different types of hardgoods. There are about 468 stores from which the services are provided. The services are provided in three sectors, which are sports and leisure products, accessories and service and home products. Canada Tire Petroleum, the largest independent retailer of gasoline in nation, and Canadian Tire Financial Services that offer different types of financial products like branded credit cards etc are other businesses of the group. The group holds general annual meeting of all its shareholders each year and the last AGM was conducted on 10th May 2007. Let us discuss about the Canadian Tire Stock.
CANADIAN TIRE STOCK
The stock Canadian Tire is listed at the Canadian Stock Exchange and is traded like other stocks at the floor of the exchange. No doubt, it is one of the most important stocks that are traded at the exchange. The price of Canadian Tire stock changes everyday with rise and drop in the share present. On 3rh July 2007, the stock of Canadian Tire was trading at a price of about 85.49, which was 1.77% up from the previous day close. The stock gained points of 1.44 to reach the level of 85.49. An idea about the heavy trade in the stock can be easily gathered from the fact that the total volume of the stock stood at 296100 at the end of day, which is quite high as compared to other stocks. There are many persons, institutional investors etc that trade in the stock of Canadian Tire. It is to be advised here that all the persons etc that trade the stock by way of TSX etc must note that there is a minimum delay of 20 minutes in the price of stock and thus, it is very necessary that the accurate current prices are known from the stockbrokers so that the desired motives are accomplished. Let us now discuss the various characteristics of Canadian Tire Stock and other aspects related to it.
CHARACTERISTICS OF CANADIRE TIRE STOCK AND OTHER ASPECTS
There are many characteristics of Canadian Tire stock that have to be understood before any person goes for trading this share. First is the move that is made by the stock. Alike other stocks, there are higher as well as lower levels that are achieved by this stock and thus, a person should try to buy it when it reaches at lower levels. Similarly, if a person wishes to sell the stock, he has to wait for the stock to reach the upper levels, so that he can gain in the whole episode. For example, on 3rd July, the stock closed at a level of 85.49. Before closing, the Canadian Tire stock reached a higher level of 86.02 and dipped to the lower level of 84.05. Thus, trades in the Canadian Tire stock have to be made carefully. Other characteristic that needs to be understood that in the past one year, the Canadian Tire has touched the lower level of 61.25 on 1st August 2006 and thus, the stock has already gained many Canadian Dollars from its lower level.
This is the reason why the experts say that at present, making huge investments in the Canadian Tire stock does not seem good. This is also substantiated by the fact that the higher level of the stock in the past one-year has been 86.02, which was achieved on 3rd July 2007. Thus, right now, the Canadian Tire stock is being traded at the highest levels and since the group has been continuously making progress, there is some higher level that is expected. But as far a making huge an investment at present is concerned, it does not make sense. However, if the stock slips by 10-15% in near future, it can be termed as an excellent opportunity to make investment in the stock.
There are many top compensated officers in the group, which includes Mr. Wayne C. Sales, who is the Vice Chairman and his total annual compensation is about $1.9M. There have been some key developments due to which the stock of Canadian Tire has shown excellent growth. On 11th May 2007, the Canadian Tire announced its first quarter profit of $64.5 M. This profit was 35.5% up from the last year profit gained in the same quarter, which was $47.6 M. This announcement provided the major push to the stock and it gained good points at the stock exchange. The net earnings of Canadian Tire stood at 79 cents per share, whereas the same a year ago was 58. This is another reasons for the stock of Canadian Tire gaining so much ground. As per retailers, the net earnings stood at $66.9M, which was about $53.7M a year ago. Apart from the above, the retail sales of the Canadian Tire rose by about 5.6% to the level of $1.81 billion, which were about $1.71 billion in the last year. Thus, there were several reasons that can easily be attributed to the stock gaining higher prices at the stock exchange. The group declared a quarterly dividend of $0.85 per share on Class A non-voting shares and this dividend is payable on 4th September 2007. Since this announcement was made on 10th May 2007 at AGM, it also provided the necessary push to the share.The transfer agent of Canadian Tire is Computershare Investor Services, which is located at 100 University Avenue 9th Floor, Toronto Ontario M5J 2Y1, Canada.
Given above are some of the aspects and characteristics of Canadian Tire stock.
SO, GO FOR THE CANADIAN TIRE STOCK
After reading the above article, it can be said that there are many factors that contributed to the rise in the stock of Canadian Tire. The Canadian Tire is one of the most important groups of the nation and is expected to do better in coming years. Thus, if there is any slip in the stock, it is indeed a good investment opportunity.
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