Use access key #2 to skip to page content.

JimVanMeerten (67.58)

Tim Horton has an appetite for growth

Recs

1

March 09, 2011 – Comments (0) | RELATED TICKERS: THI

I was screening for stocks hitting the most frequent new highs onBarchart and found Tim Horton (THI).  They are Canada's largest quick service restaurant chain and features coffee, fresh-baked goods, soups and sandwiches and have big expansion plans not only in the US but also in the Middle East.

Although things look great on the surface I would caution you that the company's earnings will be sensitive to the commodity prices of coffee, sugar and wheat.  With over 3000 locations and another 1000 planned including 120 in the Middle East they still have room to grow.

Technical Factors:

1 - 96% Barchart technical buy signals

2 - Trend Spotter (tm) buy signal

3 - 15 new highs and up 9.12% in the last month

4 - Relative Strength Index is 75.13% and climbing

5 - Trades around 45.05 with a 50 day moving average of 42.08

Fundamental Factors:

1 - Wall Street brokerages like this stock and have 2 buy and 2 hold reports published including a buy recommendation from Goldman Sachs in December

2 - Sales are projected to increase by 5.70% this year and 6.70% next year

3 - Earnings are estimated to increase by 10.70% this year, 17.60% next year and 15.00% annually for the next 5 years

Investor Sentiment:

1 - The average investor as measured by the CAPS members on Motley Fool vote 328 to 28 that the stock will beat the market

2 - The more experienced All Stars vote 94 to 8 in agreementIf you have an appetite for a fast food restaurant with big expansion plans add this one to your watch lists


Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs onBarchart.com  in his daily blog -- Barchart Portfolio Blogs.
Through Marketocracy Capital Management  you can have a Sep

arately Managed Account that mirrors his Barchart Van Meerten New High model portfolio.

0 Comments – Post Your Own

Featured Broker Partners


Advertisement