RE:U.S. short-seller targets Canadian TireBSdetector2016 wrote: U.S. short-selling firm Spruce Point Capital Management has set its sights on Canadian Tire Corp. Ltd., announcing it has made a bet that the retailer’s shares are poised to fall.
What Spruce Point Capital completely missed in their assessment of Canadian Tire is the Franchisee side of the business! As I understand it, around 75% of the actual owners are over 65 years of age. On top of that, in order to bid on a higher grossing store, a bidder (present franchisee owner) can only move up a limited amount in acquiring a higher grossing store, based on his/her's present store's gross income.
Therefore, CTC will not be getting any new blood or even younger blood into the ownership of their highest grossing stores in the near future.
This is a great stock to short
Kherson