Tim Hortons (THI)

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optionable68
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Re: Tim Hortons (THI)

Post by optionable68 »

Anyone know when THI will next trade ex-dividend ?
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Re: Tim Hortons (THI)

Post by Peculiar_Investor »

optionable68 wrote:Anyone know when THI will next trade ex-dividend ?
One could make a fairly educated guess based on Tim Hortons - Dividend History. According to Tim Hortons - Events & Presentations, Q4 earnings are due tomorrow (Feb 21st), at which time they should declare the next dividend and set the record (and hence ex-dividend) date.
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Re: Tim Hortons (THI)

Post by Peculiar_Investor »

Earnings release is out today, dividend has been increased and the record date and hence ex-dividend date is now known (my bold)
Tim Horton's Q4 Earnings announcement wrote:Accordingly, the Board has increased the quarterly dividend by approximately 23.8%, to $0.26 per common share, payable on March 19th, 2013 to shareholders of record as of the close of business on March 4th, 2013. The payment of future dividends and our targeted payout range remain subject to Board approval.
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Re: Tim Hortons (THI)

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Thanks PI
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Re: Tim Hortons (THI)

Post by fundamental »

THI dividend paid yesterday :thumbsup:
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Re: Tim Hortons (THI)

Post by scomac »

Burger King in talks to acquire Tim Hortons
Tim Hortons is in talks with Burger King about a merger that would create one of the world’s largest fast-food chains with 18,000 restaurants worldwide and $22-billion (U.S.) in sales.

<snip>

“3G Capital, the majority owner of Burger King, will continue to own the majority of the shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King.”
What's old is new again! Blech! I'm not sure what this will do to unlock shareholder value for current Tims shareholders, but it is sure to earn the CEO a fat bonus for his strategic initiative! :roll:
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Re: Tim Hortons (THI)

Post by like_to_retire »

It did make me wonder back on August 5th after my THI stock was slightly negative on the year that it jumped about 15% in a few days.

Now I get it.
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Re: Tim Hortons (THI)

Post by scomac »

Just checked the premarket bid on THI and it's $71.50. Apparently it's up 18% on the premarket in NY. I'm not up on the company, but I'd be awfully tempted to sell on the news!
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Re: Tim Hortons (THI)

Post by Taggart »

I'm just hoping this isn't another buyout of a Canadian company I own shares in. Personally, not interested in selling, but prefer to hang on while the company is still increasing it's dividend. Ironically, if I'm in Tim Hortons once or twice a year, that's pushing it.
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Re: Tim Hortons (THI)

Post by brad911 »

For the record....this is A REALLY BAD IDEA

You're right Scomac.....big fat bonus and a nice parachute likely.

Burger King strategically will try the same approach Wendy's did. I would sell on this news. Take your CG's today not knowing if they'll be there tomorrow or if you'll get an extra 5-10% on the purchase price.

* I have never held shares in either company.
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Re: Tim Hortons (THI)

Post by scomac »

THI is up; bid at $79.50 just before the open in Toronto. If I owned this stock I would most definitely sell. It boggles my mind as to why the market thinks this "tax" based deal is such a wonderful idea! :x

[Added] $82.00 +/- on real time as I write (9:43 EDT)
Last edited by scomac on 25 Aug 2014 09:44, edited 1 time in total.
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Re: Tim Hortons (THI)

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Took your advise, just sold 300sh at $81.20. Bought them on issue in 2006 for $27.
Once the dust settles we'll see if we want to own them again and if a lower entry point comes along.
It was always mighty nice to see those those long Tim's lineups.
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Re: Tim Hortons (THI)

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OnlyMyOpinion wrote:Took your advise, just sold 300sh at $81.20. Bought them on issue in 2006 for $27.
That's a sound strategy in my book -- You bought on the IPO and then sell when there's talk of a merger/buyout. It should work well for any company with a repeatable business model. :thumbsup:
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Re: Tim Hortons (THI)

Post by cashinstinct »

I would sell if I did own some directly.

At least it's part of the TSX S&P 60... so some gains for now!
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Re: Tim Hortons (THI)

Post by like_to_retire »

scomac wrote:THI is up; bid at $79.50 just before the open in Toronto. If I owned this stock I would most definitely sell. It boggles my mind as to why the market thinks this "tax" based deal is such a wonderful idea! :x
Yeah, you convinced me and I sold all my shares this afternoon @ $84.34. Maybe it will go higher, but I had only held it for about a year and three quarters with a cost base of $47.03, so an ~80% gain can't be passed up. Actually my Consumer Discretionary was getting a bit high anyway after I picked up CTC.A a short while ago, so I'll just take my gains from THI and deploy it elsewhere.

Thanks for the kick in the pants Scomac - I owe you a donut and a coffee. :)

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Re: Tim Hortons (THI)

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Finally woke up and sold on its afternoon swoon. 100 shares held since IPO at $27 sold for $82.62

Thanks for the poke.
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Re: Tim Hortons (THI)

Post by ghariton »

No opinion on whether to buy or sell. But it seems to me that what is going on here is yet another tax inversion. U.S. companies, starting with big pharma, are buying up smaller companies in other countries and consolidating headquar5ters in the other country. The purpose is to benefit -- to some degree anyway -- of the lower corporate tax rate in those other countries -- the U.S, has one of the highest corporate tax rates among developed countries.

Obama has denounced this for some time. It is his equivalent of the income trust conversions in Canada some eight or nine years ago. There may well be legislation to stop it, at some point. But for now the movement is gathering steam.

Who says corporations do not respond to a high corporate tax rate?

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Re: Tim Hortons (THI)

Post by Flaccidsteele »

OnlyMyOpinion wrote:Took your advise, just sold 300sh at $81.20. Bought them on issue in 2006 for $27.
Once the dust settles we'll see if we want to own them again and if a lower entry point comes along.
It was always mighty nice to see those those long Tim's lineups.
In the past I made this mistake as well.

Almost 20 years ago, after a couple buyouts I found myself with the stock of a relatively unknown multinational and a quadrupling. I would have had my first 10-bagger a lot sooner if I hadn't made the mistake of selling.

Thankfully I haven't made this mistake in awhile.

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Re: Tim Hortons (THI)

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Flaccidsteele wrote:
OnlyMyOpinion wrote:Took your advise, just sold 300sh at $81.20. Bought them on issue in 2006 for $27.
Once the dust settles we'll see if we want to own them again and if a lower entry point comes along.
It was always mighty nice to see those those long Tim's lineups.
In the past I made this mistake as well. After a couple buyouts I found myself with the stock of a relatively unknown multinational and a quadrupling paper gain. I would have had my first 10-bagger a lot sooner if I hadn't made the mistake of selling. Thus far worked out better than selling for money that I wouldn't even use.
Yabbut, we're not talking about a buyout by a relatively unknown multinational. We are talking about a merger being orchestrated by a venture capital outfit. These guys own a whole lot of Burger King shares and it would appear that they aren't happy with their current rate-of-return. If they are successful in pulling this off, they will artificially increase BK's EPS and then by extension a likely increase in share price. Voila! Job done and then onto stage two which will be a secondary offering of the shares in the combined entity at a much higher price enabling 3G to get the rate-of-return they are looking for and allow them to divest their investment. That will leave the current Tims and BK shareholders to fend for themselves as it is obvious to me that the people currently calling the shots aren't overly interested in the long term aspects of the business. The only people that are going to make a load of money on this deal by going along for the ride are 3G Capital. It all comes down to how much faith you have in 3G Capital to manage your investment for you because that is exactly what you are advocating!
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Re: Tim Hortons (THI)

Post by Taggart »

No plans here to hang on if any merger or buyout deal gets accepted between the parties involved. Personally I'm hoping the said talks collapse. There's not all that many great dividend growth choices in the Canadian consumer discretionary market to replace THI with, especially in this hot market.
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Re: Tim Hortons (THI)

Post by snowback96 »

Taggart wrote:No plans here to hang on if any merger or buyout deal gets accepted between the parties involved. Personally I'm hoping the said talks collapse. There's not all that many great dividend growth choices in the Canadian consumer discretionary market to replace THI with, especially in this hot market.
Why do you need to sell and then replace it? Keep in mind that the combined entity will end up as a "Canadian" company paying dividends eligible for the dividend tax credit. It's weight will also increase in the TSX indices. For whatever it's worth, I am not planning to sell. This is the "hold" part of my buy & hold strategy.
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Re: Tim Hortons (THI)

Post by kcowan »

BKW has been pumped from $19 to $32 and this will top it off. As scomac has said, if this merger gets done, then 3G will extract their capital at a premium and the resulting stock will slide back down to a reasonable PE and might again become a good candidate for DTC investment. But I have no problem taking a one day 20% gain from THI.

(I am reminded of the Bell takeover! Sell on the news.
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Re: Tim Hortons (THI)

Post by OnlyMyOpinion »

by Flaccidsteele » 25 Aug 2014 12:26 "In the past I made this mistake as well."

Thanks, now I don't feel like such a dummy. Any suggestion on where I should redeploy the proceeds?
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Re: Tim Hortons (THI)

Post by Shakespeare »

Warren Buffett to help finance Burger King and Tim Hortons merger - The Globe and Mail
Buffett’s agreement with Burger King would likely take the form of preferred shares and be valued at around U.S. $10-billion
Preferreds, not common.

If Buffet doesn't think the common's a good deal....
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Re: Tim Hortons (THI)

Post by Flaccidsteele »

scomac wrote:Yabbut, we're not talking about a buyout by a relatively unknown multinational.
I apologize because I may have mis-communicated. When I used the term "unknown multinational" what I meant was that I had stock in a business that I understood, that, through a couple mergers, ended up becoming stock in a multinational in a business that I didn't understand. That was "unknown"/unfamiliar to me. The multinational was a known business, but I didn't have the familiarity that I had with my original purchase. And because I was lazy, I sold. And that this selling was a mistake for me.
scomac wrote:It all comes down to how much faith you have in 3G Capital to manage your investment for you because that is exactly what you are advocating!
I apologize if that's how my post sounded. It is not my intent to advocate for this position. All I wanted to say is that, speaking for myself, I have crystallized a capital gain in the past and I consider this to be a mistake. I would have done far better holding whatever stock I ended up receiving. And that I would have had my first 10-bagger sooner if I didn't make this mistake. I now do my best to avoid selling.
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