scomac wrote:I won't be surprised if buying opportunities present themselves, down the road, ala Coutu and Couche Tard.
Yep. I just sold at 30.86. I'll take my 62% + dividends since I bought in August 2003. This kind of short term reaction makes no sense for a stock that was already expensive. Integration of an acquisition of this size is not easy. It's highly likely that earnings will suffer in the short run as they work through the acquisition. As you say, possible opportunities.
Added: From the conf call -
Q. Any plans to sell the Couche Tard holding?
Q. So that's definite?
A. There are no plans at this time. We think we can keep our investment even with this acquisition.
Compared to the Jean Coutu's conf call after their Eckerdt purchase, not very much was said. The time frames mentioned are 4-5 years!!! Lots of questions about synergies, esp. procurement & marketing promotion. When asked about things that they would change as they walk through the stores, they said it's too early to say. Coutu's management on the other hand was very specific. Perhaps Eckerdt had more problems than A&P(Canada). Lots of unanswered questions!