Fire & Flower Holdings Corp P.FLW

RE:2021 Cannabis Outlook ! Very good days ahead !

[red2000]

OH ! BTW !

Here is a quick recap of the release of Alimentation Couche-Tard (ATC) afte the end of discussion with Carrefour in France :

ATD announced that its discussions with Carrefour are no longer continuing. The two companies have decided to look at partnership opportunities, including sharing of best practices on fuel, pooling purchasing volumes, partnering on private label, innovation and optimizing product distribution in the overlapping networks.
ATD hosted a call to discuss this announcement and its strategic goals.

ATD revealed that it began looking at adjacent retail business opportunities (focus on food and fuel if it is complementary) about three years ago. These include grocery, dollar stores, travel retail, QSR, etc. It has narrowed the target segments down to grocery and one other (not disclosed). ATD remains committed to growing the fuel/c-store business as evident by its attempt to acquire Ampol in Australia and Speedway in the US, as well as investments in electric charging, food, new store growth, B2B fuel in the US, etc.

While we share investor concerns around achieving attractive returns from a new channel and the implications for ATD’s core business, we remain confident that ATD will maintain its financial discipline. Looking at other retail segments with synergies with its core business should lead to many interesting M&A opportunities and help diversify away from fuel.

Lowering target to C$45 (from C$51). ATD is trading at 15.4x FY22E EPS (below 17.4x five-year average). We expect valuation to remain in this range in the foreseeable future, reflecting the potential that ATD will expand into adjacent business segments (higher risks). As investors gradually shift their focus to renewed earnings growth in CY22 (FY23), we expect share price appreciation. Our C$45 12-month price target implies 15.4x FY23E EPS.

SOUND CLEAR TO ME !!!

And you ?