Thread: Crappy Tire's Financial State

Originally Posted by Unregistered

Either way, Crappy Tire paid $1.765 billion to buy a company they say is only worth $0.765 billion.

I'm sure Crappy Tire will figure out a way to make up the billion.

Don't expect any extra generosity at the returns counter for a while!

http://ca.news.yahoo.com/canadian-ti...verything.html

Welcome to reality faker advocates, welcome to reality.

Funny how YOU read the article vs. what it actually says.
You conveniently missed some of these parts of the article

"Newer stores, located in towns and cities across the country, are brighter and more airy"
"Yet somehow, Canadian Tire remains standing, earning profits of $453 million on $10.3 billion in retail sales last year, which was up three per cent from a year earlier "

"People have been calling for Canadian Tire to fold under the pressure of new competitors for 20 years, and it hasn’t happened yet,” says Jim Danahy, the chief executive of CustomerLAB, a retail consulting firm. “They seem to have a unique relationship with their customers.”

"Retail experts say it’s a mixture of familiarity and convenience coupled with a methodical approach. “It’s bad in theory and great in practice,”

"By far, the biggest move this year was Canadian Tire’s $771-million purchase of sports retailer Forzani Group Ltd., which solidified the company’s position in the sporting goods market while giving it a pipeline to a younger demographic of Canadians who are more likely to shop at malls"

"They accept them as good for paint, good for small appliances, the most basic of lamps and cheap furniture.” He likens Canadian Tire’s business model to a drugstore’s, with its racks of impulse purchase items, but for dads. They go in to buy a doorknob and walk out with a new winter driving mat and a pair of shears. He also argues that Canadian Tire has managed to find a sweet spot in the do-it-yourself market that exists just below Home Depot (where you might go if you’re refinishing the bathroom) and the local hardware store. “They are a DIY retailer, but for very small day projects,” Danahy says. “Instead of building the deck, Canadian Tire is going to sell you the high-pressure washer to clean the deck.”

"Canadian Tire will need to stay on its toes as its territory is further invaded by big U.S. retailers. But despite its sometimes ungainly appearance, there’s no reason to think the inverted orange triangle and green maple leaf will disappear from the Canadian landscape anytime soon. It may never be a chic proposition. But neither is weatherproofing windows or fixing a clogged toilet"

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Now re-read the article. The writers position is clear. Despite some challenges, competition and some failed strategies, Canadian Tire is here to stay.
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Nice try though

Wow - It sure sounds like this place sucks!

Glad I don't shop there any more!

Originally Posted by CTH8R

Funny how Angry CT Guy would choose THIS story as evidence that their store DOESN'T suck!

"not a very welcoming place"

"Prospective shoppers are greeted by a queue of frazzled-looking customers ... at the service counter"

"aisle after cluttered aisle"

"inventory—none of it particularly cheap and none of it terribly aspirational either"

"Customer service, meanwhile, varies wildly from store to store"

"years of grappling with flat sales and a questionable effort to try to attract more women to its stores"

For their e-store, "executives pulled the plug on a previous attempt in 2009—an experiment that Wetmore recently described as ill-conceived"

For automotive sales, "its reputation among consumers in the category slipping well behind competitors"

"a rather limited inventory and a staff that aren’t generally known for their customer service" (no surprise there, LOL!)

"Canadian Tire is bound to be hurt when “cheap chic” retailer Target arrives next year"

"Where Canadian Tire is at risk is that they are often very close to a Zellers" (which may become a Target store).

"Their customers did not accept them as a major home decor player"

"If it sounds like a chain that’s trying to appeal to everybody simultaneously—usually a bad business strategy—that’s because it is"


Oh, yeah! I'm so TOTALLY convinced now that they DON'T suck! LMAO!

Tsk tsk ...

Mild winter no fun for Canadian Tire - The Globe and Mail

If they hadn't bought a store that actually had a good business model (but with a bus-load of debt!), they'd really be in trouble!

Did you ever read the article or just stop at the title?

"The 2011 acquisition of Forzani will mean earnings are UP year over year.
He adds that receivables growth is expected to remain modest, but earnings should climb based on lower write-offs and improved yield.

Upside: Mr. Petrie is maintaining his “sector outperformer” rating and a price target of $72 (Canadian). "

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Sector outperform with a raised target (oh that's terrible)
Earnings climb (oh no.... sinking ship)
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So in a winter with virtually no snow, and no winter temperatures coast to coast, we will have raised earnings and a target stock price $8.00 higher then current price. -

What exactly was your point in posting that article?

Along with the down-grades to the Crappy People's claims about their battery warranties, we now have a prediction of a down-grade to the Crappy Profits.

Keith Howlett, an analyst at Desjardins Securities, has reduced his profit estimate to $5.32 a share from $5.50 in 2011 and to $6.15 from $6.25 in 2012.

Warmer winds cooling retail sales - The Globe and Mail

Gee, maybe buying a second company that is also ties to the same sales environment (the sale of seasonal items) wasn't the greatest idea ever, LOL!

Great financial analysis, well done

did you read the business news this week?

Originally Posted by Owner 1

did you read the business news this week?

Personally, no, I didn't see anything.

Another thing I didn't see was your definition of what "the best warranty in the business" means, for car batteries.

I also somehow missed all the data you said you had that "proves" Crappy Tire has "the best warranty" among every single battery retailer in all of Canada.

Care to re-post it now?

Oh, wait, you never did post it in the first place, now did you?

Still waiting!