There are a few. First off, im buying RY CN and BNS CN, because if they're fckd, we're all fckd. ATZ CN is down 45%, less than 1x levered, always packed when I've been in store, not luxury, but not fast fashion. This one is a simple as 'will your wife/daughter still shop at Aritza in 2 months'. Answer is prob YES. Set & forget. OSB CN for reasons listed before. PKI CN another. It's down 50%. They're a fuel retailer (fancy for gas stations), impacted by oil spot, but when wholesale oil prices fall, retail doesn’t fall as much and as fast so in the near term, gas station operators can take advantage of an increase in margins. I know demand is fckd for time being, but LT this is a FCF beast. Similar to ATD/b, most of their fuel is purchased at spot prices (meaning they can take advantage of what’s currently a significantly lower oil price environment). While some gas station operators may have contracts, some are branded, offset by the fact their refinery crack spreads are wider now (which they will benefit from). It's a plug your nose and buy.
What's your favourite "quality stock that has been drubbed too far" name? And btw, I agree - Canada is on sale compared to the US.
There are a few. First off, im buying RY CN and BNS CN, because if they're fckd, we're all fckd. ATZ CN is down 45%, less than 1x levered, always packed when I've been in store, not luxury, but not fast fashion. This one is a simple as 'will your wife/daughter still shop at Aritza in 2 months'. Answer is prob YES. Set & forget. OSB CN for reasons listed before. PKI CN another. It's down 50%. They're a fuel retailer (fancy for gas stations), impacted by oil spot, but when wholesale oil prices fall, retail doesn’t fall as much and as fast so in the near term, gas station operators can take advantage of an increase in margins. I know demand is fckd for time being, but LT this is a FCF beast. Similar to ATD/b, most of their fuel is purchased at spot prices (meaning they can take advantage of what’s currently a significantly lower oil price environment). While some gas station operators may have contracts, some are branded, offset by the fact their refinery crack spreads are wider now (which they will benefit from). It's a plug your nose and buy.
Thanks Winston! Really appreciate you sharing your views!