Canadian Stocks We Like

[00:00:01] This is The Canadian Investor, where you take control of your own portfolio and gain the confidence you need to succeed in the markets. Hosted by Braden Dennis and Simon Belanger

[00:00:14] The Canadian Investor Podcast. Welcome to the show. It is Tuesday, November 26. My name is Braden Dennis. Joined by Dan Kent, our third amigo here.

[00:00:28] I don't know if the two of us have ever comboed up on the earnings episode, but here we are.

[00:00:35] No. We just did the 2024 bold predictions. So we've never been on an episode together. Outside of that, three of us, yeah.

[00:00:45] Oh, unreal. Well, you know, feels natural and the listeners have heard us both, so now they're getting a new combo here.

[00:00:52] Dude, we have Canadian earnings Lollapalooza. I don't know if we intended on this, but I'm looking at the notes and we have a bunch of TSX stocks here that we're going to talk about their Q3.

[00:01:05] Whether that was two weeks ago, a week ago, companies we like, companies we follow, companies you probably know and love.

[00:01:13] So that's going to be today's episode. And I haven't done one of these in a long time. Like I like retired from these, but it was kind of fun to kind of just keep up to date with what's going on.

[00:01:26] Yeah. There's a lot of, there's a lot of like, I guess I would say economically sensitive Canadian companies reporting right now.

[00:01:34] I mean, Cushtard will go over Loblaw is a big one. Canadian Tire, if we get to it, even something like Shopify.

[00:01:41] I mean, a lot of, you know, companies that kind of give an indication of the Canadian economy, the Canadian consumer. So it should be a pretty good episode.

[00:01:50] Without further delay, let's get to Loblaws. But this is, you're talking about Shopify. There's, there's kind of been no one more critical of Canada than Toby, the CEO and founder of, of Shopify as of late. I don't know if you've seen him go on rants. He's, he's really trying to make a change with what's going on in Canada. And, and I, I salute him for it, but he, he's vocal, man. It's, it's interesting.

[00:02:19] He's always been pretty vocal. I don't know. I haven't been keeping tabs on what he's been saying lately, but he's typically been pretty vocal.

[00:02:27] Yeah. Well, we can, we can, we can talk, talk, talk about when we get to Shopify. Let's, let's talk about Cushtard.

[00:02:32] Yeah. So Cushtard just reported, it would have been after the close yesterday. So this is a company that's, it's struggled for quite some time now.

[00:02:41] I mean, it's, it's pretty cyclical just, you know, generally based on, on the economy, especially the consumer itself. So they reported headline misses again on both top and bottom lines.

[00:02:53] And on a year over year basis, earnings are down by, by 9.8%. Revenue is up by 6%. But the difficulty here is, is SG&A, which is effectively like selling expenses, overall expenses.

[00:03:06] They're up by 12 and a half percent, which is obviously more than offsetting the boost in revenues. So merchandise gross margins dipped in practically every geographical region of the business and same store sales declined by 1.6% in the U S 1.5% in Europe, uh, Europe and everywhere else.

[00:03:26] Effectively, they bunch them into three different areas and 2.3% in Canada. When we look to overall same store fuel volumes, they remain relatively flat in Canada and Europe while they fell by around 2.2% in the United States.

[00:03:40] Fuel margins continue to dip as well. Those are down by 7% year over year in the U S and 2.1% in Canada. And I mean, overall it was a, it was a pretty weak, but probably much expected quarter from Cushtard.

[00:03:53] Uh, people are traveling less, they're pinching pennies, they're spending less. I mean, the, the impact to convenience stores comes from multiple angles for one less fuel means less merchandise purchases as the vast majority of consumers will buy this merchandise after fueling.

[00:04:09] But, uh, secondly, I mean, convenience stores are, are meant for convenience. I mean, when times hit tighter, somebody might, you know, run to the grocery store for cream or eggs, whatever it may be over, you know, paying a higher price for that convenience.

[00:04:23] Uh, the company raised the dividend by 11.4% on the quarter. So this is actually the smallest level of dividend growth. We've witnessed from Cushtard since the start of the COVID-19 pandemic, like peak lockdowns back in, you know, mid to late 2020.

[00:04:39] I mean, overall it's a pretty strong long-term hold, I would say, but it's just a cyclical stock that is obviously, uh, going to be cyclical. And I didn't, I didn't put any notes in this.

[00:04:50] That's a pretty healthy dividend hike. And for it to be the smallest as of late is pretty insane.

[00:04:56] I mean, they're typically Cushtard is known for quite some time. Like they make pretty chunky 20% plus raises annually. And I mean, their dividend coverage, I think it still makes up only 10 or 15% of free cash flows.

[00:05:10] I mean, I guess the one other thing I would mention, I actually didn't get any time to jot any notes down about it, but it looks like the 7 and ideal is, is dead in the water. I believe they're going to be taking the company private.

[00:05:22] And Cushtard kind of said that they won't be doing any sort of hostile takeover attempts or anything like that. So that looks like it's, it's done.

[00:05:30] Yeah. I was just going to say, what's the latest on this? I know they had their revised bid. They were taking this kind of persistent, but friendly approach to, you know, Hey, we're not going to make this hostile, but like, you know, let's, let's make this work.

[00:05:46] And, you know, I think they're taking the approach of how business is done in Japan. You know, they don't take lightly to aggressive hostile takeovers, especially if a company so important in Japan to 7-Eleven.

[00:06:03] But I think if you're a shareholder of Cushtar, you want to get to yes or to no quickly.

[00:06:15] Yeah.

[00:06:15] And whatever it is, you just don't want this drag. I think that was my take on the deal was, yes, it looked like they were biting off a lot, but not more than they can chew.

[00:06:28] The risk to me was, yeah, you're here. The year is 2026 and you're still going through regulatory hoops with no real clear path to if this is for sure going to happen, which ties up a lot of capital.

[00:06:44] It changes their entire strategy around dilution. They were going to have to raise a lot of debt, issue a lot of shares, tie up a lot of mind share for the management team.

[00:06:54] So you want to get to yes or no quickly, whether that's happening or not happening. Get to an answer.

[00:07:01] Yeah. And I mean, it looks like it was no. And I know, I mean, it's pretty much no at this point in time.

[00:07:06] And I know the company had said that they didn't want to dilute too much. So that would have meant that I would imagine a huge chunk of that would have come from debt.

[00:07:13] And I mean, they were effectively at the point, I believe Seven and I went, I think they're like the offer is like 53 billion US now, which would be pretty much larger than Custard overall as a company.

[00:07:25] So, I mean, if they were to go over and above this, it would be, it would be gigantic.

[00:07:29] And I mean, like you said, like, you know, the hostile takeover, especially from a foreign company, this would be like I had mentioned it before.

[00:07:37] It would have been the largest acquisition in Canadian history. I can't really think of anything else that's been acquired for, for that large of an amount of money.

[00:07:45] And I mean, it was just, there's a lot of moving parts, but it looks like it's finally going to just come to a resolution now.

[00:07:52] Moving on to another Quebec based acquirer and very successful stock for shareholders.

[00:08:03] You are now a shareholder, by the way, which is, which is nice. Welcome to the club.

[00:08:08] Good old WSP.

[00:08:10] I was a shareholder pre-pandemic, sold and then bought back in recently.

[00:08:15] Yeah.

[00:08:16] So that's a tough sell.

[00:08:18] I know.

[00:08:18] Yeah.

[00:08:19] It looked at that chart.

[00:08:21] Yeah.

[00:08:22] Hey, you know what? Hindsight's always 20-20.

[00:08:25] I bought some more of WSP, which only trades on the TSX actually.

[00:08:31] So there is no other listing in the US.

[00:08:33] I bought some more of it this morning with some proceeds of another Canadian stock that I've held for years and years.

[00:08:40] And I hate selling winners, but I think I've squeezed a good amount of the juice out of this one.

[00:08:45] And I'll provide some more info on that one in December after the joint TCI updates are live.

[00:08:51] But to kind of summarize, by the way, I've been using Finch at a lot for summarizing quarters.

[00:08:56] It's like, I wish I had this capability when I was doing the pod with Simone because it's pretty freaking good.

[00:09:02] So they had net revenues of 3 billion, which was up 10% from this time last year.

[00:09:08] Total revenues of 4 billion, which is up 11% year over year.

[00:09:12] Organic growth at 7.2%, which is quite nice.

[00:09:17] Staying sticky at that high single digits average.

[00:09:20] Honestly, really nice given all the M&A activity they're doing for a services, engineering, consulting services business that largely serves infrastructure projects.

[00:09:31] Seeing this kind of organic growth post-big post-pandemic spend when it comes to infrastructure, seeing that consistently stay persistent is really good.

[00:09:43] I think that that's why the stock has reacted the way that it has over the last couple of years.

[00:09:47] Adjusted EBITDA up 12% and the margin continues to tick up.

[00:09:51] I'm going to talk about the margin in a second here.

[00:09:52] It's pretty spectacular.

[00:09:54] The backlogs now at a record almost 15 billion, which is pretty impressive.

[00:10:00] And they raised guidance as well to include the big power engineers acquisition, which they expect to add to their EBITDA.

[00:10:10] So they're expecting over 2 billion in EBITDA for next year.

[00:10:14] Now, recent acquisitions in the quarter, they did Proxion, Communica, Public Affairs, AKF Group, and 1A Ingeneros, which is Spanish for engineering.

[00:10:33] And technically in Q4, since power engineers closed in October, that was a really big talk.

[00:10:42] I listened to the entire conference call last week.

[00:10:45] And that was a really big talking point, right?

[00:10:47] It was a big 4,000 employees in North America acquisition.

[00:10:52] Power engineers is, as the name suggests, power and energy firm.

[00:10:57] And so that was a really big deal.

[00:10:59] They've been eyeing that deal for a long, long time.

[00:11:02] And it finally came together.

[00:11:04] So they seemed pretty excited about it.

[00:11:07] I enjoyed in the Q&A of the call, Dan, where he's like, can you break down the entire integration strategy and all these hard-hitting questions about the power engineers acquisition?

[00:11:24] See, I was like, dude, it closed like four days ago.

[00:11:27] Give us a second, man.

[00:11:32] It's so funny, these analyst calls.

[00:11:35] I looked over the quarter, but I have not watched or listened to the call.

[00:11:39] I know it was a pretty solid quarter.

[00:11:42] I mean, I know their Asia-Pacific segment is kind of struggling right now.

[00:11:46] But North America is chugging along very well.

[00:11:51] It's so global now, as the name suggests.

[00:11:55] I just wanted to pull up.

[00:11:56] Dude, you can see on the screen here this chart of WSP operating margin since 2015.

[00:12:04] And of course, this is service business, so operating margins are single digits.

[00:12:08] But it has ticked up so steadily quarter after quarter from high 4% to 9%, just like clockwork.

[00:12:20] And this is the kind of thing you want to see.

[00:12:22] It's like, yes, doing acquisitions is great.

[00:12:25] Yeah, up into the right.

[00:12:26] Yes, doing acquisitions is great.

[00:12:28] But you listen to like a Brad Jacobs from XPO Logistics.

[00:12:33] He's coming out with this book called How to Make a Billion Dollars, which is absolutely an absurd title.

[00:12:39] And I love it.

[00:12:40] But about like how to really integrate these things so that there's operating margins of the mothership just go up over time.

[00:12:48] And it's clear that they have that ability.

[00:12:51] It's clear that they have demonstrated that.

[00:12:53] And to have this kind of chart be visual for operating margin consistently move up, like their playbook is working.

[00:13:01] And they're doing a ton of acquisitions.

[00:13:04] I think they've done over 100 now.

[00:13:07] And it's so fragmented.

[00:13:09] It's one of those really nice to see fragmented global opportunities.

[00:13:15] And the service consulting business is good if you know how to run them.

[00:13:18] So I've been along this stock for a long time.

[00:13:21] You are as well.

[00:13:22] It's just a fantastic Canadian name.

[00:13:24] That market cap continues to surprise me every time I look at it.

[00:13:28] Because in my mind, it's still just this small, nimble, awesome Canadian growth story.

[00:13:33] But it's $32 billion in market cap on the TSX now.

[00:13:37] Yeah, it's kind of slowly becoming, you know, well, what would that be?

[00:13:41] $32 billion?

[00:13:42] That would have to be top 10, top 15 in Canada, unless I'm way off base there.

[00:13:47] But it would have to be pretty close.

[00:13:49] Not top 10.

[00:13:50] Top 25, probably.

[00:13:53] Yeah.

[00:13:53] I don't know.

[00:13:54] I have to look it up.

[00:13:54] But I mean, yeah.

[00:13:55] No, it's, yeah.

[00:13:58] $32 billion puts them, yeah, at around $25.

[00:14:01] Yeah.

[00:14:01] I mean, if you think about, I mean, even if you fast forward like five years ago, they

[00:14:05] were worth what, maybe eight or nine.

[00:14:08] So they've had a very good run over the last five years.

[00:14:14] And I mean, obviously, like you said, margins up and to the right, obviously, which, you

[00:14:19] know, boost profitability, especially for a company that grows so much through acquisition.

[00:14:23] I mean, it's kind of, it's definitely optimal.

[00:14:28] And I mean, it's a way to, you know, grow profitability through not, you know, just simple

[00:14:34] organic growth.

[00:14:35] I mean, they've shown they can execute for years now.

[00:14:38] I mean, you typically, like you see in the chart, you get like a few, maybe a year or

[00:14:42] so where operating margins will kind of flatline or kind of go through some struggles.

[00:14:45] But then it's just, like you said, up to the right.

[00:14:50] It's a pretty fantastic stock chart.

[00:14:52] I mean, the Canadian success stories around these acquisition machines have really been

[00:15:02] a lot of the TSX growth.

[00:15:06] Yeah.

[00:15:06] Constellation, WSP, the spinoffs from Constellation, Brookfield, TerraVest, everything happening with

[00:15:15] First Service and Colliers.

[00:15:18] There's more.

[00:15:19] There's just a bunch.

[00:15:21] Waste connections.

[00:15:22] Waste connections.

[00:15:23] Yeah.

[00:15:23] I mean, even if you look at like, it's been struggling as of late.

[00:15:27] But if you look to like a Boyd Group Services.

[00:15:30] Boyd.

[00:15:31] Yeah.

[00:15:31] Like just high acquisition company, just compounding crazy amounts.

[00:15:38] I mean, like I said, they've struggled quite a bit recently just because of inflation and

[00:15:42] labor issues and all that type of stuff.

[00:15:44] But yeah, there's a lot of solid, solid success stories.

[00:15:47] Yeah.

[00:15:48] Kushtar.

[00:15:49] Kushtar.

[00:15:50] Yeah.

[00:15:50] Kushtar.

[00:15:50] GFL.

[00:15:51] TFI International.

[00:15:54] WSP.

[00:15:56] CCL.

[00:15:57] Open Text.

[00:15:59] TMX would be another one.

[00:16:01] TMX.

[00:16:02] TMX.

[00:16:03] Scooped up a few companies over the last while.

[00:16:05] Yeah.

[00:16:06] Yeah.

[00:16:06] Pretty good.

[00:16:07] Yeah.

[00:16:08] It's been a great place to hunt.

[00:16:10] Yeah.

[00:16:10] It's been a great place to hunt.

[00:16:12] Definitely.

[00:16:13] All right.

[00:16:14] Moving on to Big Bad Loblaw.

[00:16:18] Yeah.

[00:16:18] So Loblaw actually, it reported a pretty solid quarter from a headline basis.

[00:16:24] But I would say it's one of the weaker quarters in quite some time.

[00:16:27] And I mean, keep in mind when I say weaker, I mean like relative to the last two, three years.

[00:16:31] So I mean, Loblaw has absolutely killed it in terms of overall growth over that timeframe

[00:16:37] just because of, you know, there's been a massive spending shift among Canadian consumers.

[00:16:42] When it comes to groceries and just overall, you know, discretionary and even like, you know,

[00:16:47] staple spending.

[00:16:48] That's why we've seen Dollarama do so well as well.

[00:16:51] I mean, I believe over the last five years, Loblaw is up 180, 190%.

[00:16:56] They're even up 50% this year.

[00:16:59] I mean, they're still continuing to drive, you know, a lot, a lot of activity.

[00:17:04] And same store sales this quarter grew by only 0.5% on a year over year basis on the food side of things

[00:17:11] and 2.9% on the pharmacy side.

[00:17:13] So when we look to same store sales growth last year of 4.5% and 4.6%, I mean, obviously,

[00:17:19] this is a pretty steep decline.

[00:17:21] The one thing to note is that last year's results included Thanksgiving, whereas this year did not.

[00:17:27] So they had about a 1.3% impact to same store sales in that regard.

[00:17:32] And I mean, I had mentioned this back when I went over Dollarama with Simone and how, you know,

[00:17:36] same store sales growth had been decelerating.

[00:17:39] And this was mostly due to, I believe anyway, the massive, massive shift of people into cheaper

[00:17:47] alternatives in 2023.

[00:17:49] So it would be very hard.

[00:17:51] I believe Dollarama had reported something crazy, like 15% same store sales growth.

[00:17:57] And then the next year they reported four and everybody's like, oh, well, you know,

[00:18:02] it's declining.

[00:18:03] It's not as good as it was.

[00:18:05] You know how hard it is for a company like that to, you know, get to that 15% level and then,

[00:18:09] you know, still grow it on top of that.

[00:18:12] It's pretty good.

[00:18:13] So the fact that, you know.

[00:18:15] When it comes to growth and something pulled forward, no good deed goes unpunished.

[00:18:21] You know, it's like you have some amazing pulled forward growth and then you still report

[00:18:28] pretty solid results off that base, but it's, hey, four equals less than 15.

[00:18:36] Yeah, exactly.

[00:18:37] And I've been Dollarama.

[00:18:38] There was a lot of talk around Dollarama with that too.

[00:18:40] And I'm like, well, it's when you grow same store sales at 15%, I mean, the next year,

[00:18:46] if you can grow that over and above 15%, I mean, that would be, that would be crazy.

[00:18:50] And I mean, for a company like Loblaw, you're never going to get like gigantic same store

[00:18:55] sales growth rates from this company outside of like COVID was a bit of a different story

[00:18:59] because like during the lockdowns in 2020, you had double digit same store sales because,

[00:19:04] you know, everybody got laid off.

[00:19:05] Shoppers was printing.

[00:19:08] Yeah, exactly.

[00:19:09] Like that type of stuff is abnormal.

[00:19:12] Like typically you're going to get one to 2% same store sales growth with a company like

[00:19:16] Loblaw.

[00:19:17] And I mean, it's getting back to that level.

[00:19:19] And a lot of people were kind of pointing to those numbers, but I just, I don't think

[00:19:23] it's an issue over, you know, over the longterm.

[00:19:26] I mean, they continue to grow profits at a double digit pace.

[00:19:30] Earnings are up 10.6% year over year.

[00:19:32] And the company spent over 429 million in terms of capital expenditures to open new stores and

[00:19:39] make its current stores more efficient.

[00:19:41] So as a result, we're seeing gross margins grow.

[00:19:43] We're seeing, you know, margins overall grow.

[00:19:45] Their operating margins have more than doubled over the last while.

[00:19:49] Gross margins are 30.9%, which is a 30 basis point bump.

[00:19:53] And the company bought back 2.65 million shares in the quarter, totaling 450 million.

[00:20:00] So this was over 80% of the company's free cashflow generation on the quarter.

[00:20:05] So for a joint TCI subscribers, I attached a chart highlighting the company's buyback activity

[00:20:12] over the last decade.

[00:20:13] It's bought back a crazy amount of shares over the last 10 years.

[00:20:17] And one of the key focuses should be the fact that from 2016 to effectively 2021, this company

[00:20:26] bought back 18% of its shares outstanding.

[00:20:28] So it spent around, I believe it was $4 billion buying back a $74 million or 74 million shares

[00:20:37] in the 49 to $65 range.

[00:20:39] So, I mean, Loblaws is now at $180 a share.

[00:20:42] So, I mean, you can see just the, you know, the benefits of scooping back those shares through

[00:20:48] that, you know, flat price period.

[00:20:50] And I mean, even in 2022 to 2023, the company was buying back a ton of shares as well.

[00:20:56] And its stock price typically hovered in the, you know, $105 to $115 range.

[00:21:01] And now they're, you know, again, upwards of $180 a share.

[00:21:05] And I mean, they're definitely not slowing down here.

[00:21:07] So the question now is, you know, are buybacks at all time highs or at least close to it still

[00:21:12] financially the best way for the company to spend cashflow?

[00:21:17] It's spent most of that capital on buybacks when it was around 11 to 13% times through

[00:21:21] free cashflow.

[00:21:22] Now it's trading at 16x.

[00:21:25] So it's difficult to say.

[00:21:26] I would probably argue that it still could be solid.

[00:21:29] It's not like they're opting out of, you know, free cashflow spend on improvements internally.

[00:21:34] They just are generating so much at this point in time that they can do both.

[00:21:38] And they boosted their earnings outlook on the back of just strong momentum.

[00:21:42] And it now expects double digit earnings versus high single digit earnings.

[00:21:47] And like, I think what you see here is just Canadians just can't afford to spend any money

[00:21:53] on groceries anymore.

[00:21:54] I mean, we've seen a company like Loblaw is up, I believe it's, you know, 180% over the

[00:21:58] last five years where a company like Empire, which is Sobeys, I believe Safeway as well.

[00:22:04] Like those expensive stores is like they've effectively returned.

[00:22:07] I think it's 30% over the last five years.

[00:22:10] Yeah.

[00:22:11] Loblaw has just killed it from a discount perspective.

[00:22:14] Yeah.

[00:22:16] And just their different brands to kind of, they serve different segments of the market

[00:22:23] and just provide so much smoothness through the different cycles.

[00:22:27] Yeah.

[00:22:28] Whether it be, I guess, no frills being their kind of premier discount.

[00:22:33] That's their cheap.

[00:22:34] Brand would it be?

[00:22:34] Would be no frills.

[00:22:35] But I think they're even, they're running some kind of, I don't know why I can't think

[00:22:39] of the word for it.

[00:22:41] They're testing even further discount stores that are like going to be even cheaper than

[00:22:46] no frills in Ontario.

[00:22:48] And we'll see how that turns out.

[00:22:50] But yeah, they, from a discount presence, they're, they're the strongest ones you can

[00:22:54] think of.

[00:22:55] So, I mean, and everybody, I believe everybody on average is only like the average Canadian

[00:23:00] is only around nine kilometers away on average, like everybody from a Loblaw store.

[00:23:04] So, I mean, reach, it's just, it's close to unstoppable.

[00:23:09] Yeah.

[00:23:09] I mean, I'm just looking at their brands.

[00:23:14] Fortino's serves like a higher end, even Loblaws itself is quite expensive.

[00:23:18] Yeah.

[00:23:18] But then Zayer's kind of in the middle, but then they have the real Canadian superstore,

[00:23:24] the no name brand, of course, no frills being on that lower end in terms of price.

[00:23:30] But I'm just looking at all the, the portfolio.

[00:23:34] And of course, this doesn't include like Shoppers Jogmart and their life brand, the in-house brand

[00:23:39] there.

[00:23:40] The quality and consistency of the stores is what's so good about Loblaws.

[00:23:46] Like if you go into a no frills, their house brand of president's choice is, it's good.

[00:23:55] Like it's so key, you look at the Costco playbook, it's so key to have a good in-house brand that

[00:24:03] customers are like, I've never had these frozen chicken wings, but everything else that I've had

[00:24:10] from that in-house brand is good.

[00:24:12] Easy buy, like easy buying decision, right?

[00:24:15] That's so important.

[00:24:16] Yeah.

[00:24:17] And I mean, it's like, especially when it's cheaper.

[00:24:20] I mean, like you said, Kirkland just, just kills it.

[00:24:24] It's like one of the most notable, like I would, I would say like no name brands out

[00:24:29] there.

[00:24:29] And I mean, like Loblaw even takes it, takes it further.

[00:24:33] I mean, they got like, there's, there's a lot of, you know, angst against this company

[00:24:38] as well.

[00:24:39] I mean, they, you know, the boycotts, all that type of thing, which effectively did nothing

[00:24:43] just because I think like Canadian consumers are so tight right now.

[00:24:47] Like they just, they're not willing to spend more on groceries just to kind of, you know,

[00:24:53] stick it to these, these major corporations.

[00:24:55] And as a result, like they've just, you know, like operationally average consumers know how

[00:25:01] many of the average consumer really know that all of those brands are in their portfolio.

[00:25:07] Right.

[00:25:08] Yeah.

[00:25:08] It's like when, remember when there was that Bud Light protest about all the woke stuff

[00:25:14] that, you know, it's like, don't drink Bud Light, drink a Modelo instead.

[00:25:19] It's like, uh, Anheuser-Busch owns.

[00:25:23] Same, same thing.

[00:25:24] So, you know, I, I'm not saying that every consumer is unintelligent and uneducated, but

[00:25:30] there is a good chance that not everyone can list every single portfolio brand underneath

[00:25:37] a conglomerate like Loblaws.

[00:25:39] Yeah.

[00:25:39] So.

[00:25:41] Yeah.

[00:25:41] And I mean, there's also like an element of, I mean, you, you might get one person goes

[00:25:47] into, goes into like a Sobeys for a grocery tip and they're like, no way.

[00:25:51] Cause I mean, I used to shop at Sobeys exclusively.

[00:25:54] I never went to no frills.

[00:25:56] We had like two and I don't know if I've been to Sobeys in a year.

[00:25:59] I go to no frills, no frills Costco.

[00:26:02] Cause it's just so much cheaper.

[00:26:03] I love no frills.

[00:26:04] Yeah.

[00:26:05] Yeah.

[00:26:05] And I mean, it's like, it's so much cheaper and I mean, yeah, you got to like bag your

[00:26:10] own groceries and stuff.

[00:26:11] And like, it truly is like no frills, but like, I don't care about any of that stuff.

[00:26:15] Just give me the lowest cost on, you know, effectively the same items.

[00:26:20] And I mean, you can see that in the results, like empire struggled so hard, whereas Loblaw

[00:26:25] is just killing it.

[00:26:27] Yeah.

[00:26:27] It's like a lot.

[00:26:29] There's some with every industry, there's a corner of the market that doesn't care about

[00:26:35] price at all.

[00:26:36] Yeah.

[00:26:36] There's always a corner in every industry, no matter what it is.

[00:26:39] But for most consumers, it looks more like airlines than not, which is they say they complain

[00:26:48] about having the shitty small economy seat.

[00:26:50] But when it comes to being online and picking their seat or picking which airline or picking

[00:26:57] which time to fly, all brand loyalty flies out the window.

[00:27:02] So it's the most convenient at the lowest price.

[00:27:06] Absolutely.

[00:27:06] And that's it.

[00:27:07] And that's it, right?

[00:27:09] And so most businesses look like airlines than people are willing to admit.

[00:27:14] There's only a few luxury categories that are true luxury.

[00:27:18] Yeah.

[00:27:18] And they're the outliers, not the rule.

[00:27:22] All right.

[00:27:22] Another one.

[00:27:23] TerraVest.

[00:27:24] Moving on.

[00:27:25] More Canadian TSX names.

[00:27:29] Okay.

[00:27:29] Kind of insane.

[00:27:30] I don't know if you follow this name much.

[00:27:32] Me and Simone have talked about it.

[00:27:33] I introduced it to him.

[00:27:35] I brought up on the pod.

[00:27:37] I don't know.

[00:27:38] It's kind of like the...

[00:27:39] We need a bot that just like instantly recalls all of our notes from the transcripts of the

[00:27:43] show.

[00:27:44] But I would say this is a one that got away for me, for sure.

[00:27:47] We used to...

[00:27:48] It was heavily talked about in 2022, 2023.

[00:27:52] I never bought it.

[00:27:53] I believe it was something like maybe 20 or $30 when I first started looking at it, but

[00:27:57] never bought it.

[00:27:59] Yep.

[00:28:00] Yeah.

[00:28:00] 2030.

[00:28:01] Oh, wow.

[00:28:02] Okay.

[00:28:02] So that's...

[00:28:03] Yeah.

[00:28:03] That's significantly earlier than when I got it and it's still been...

[00:28:07] I mean, that would have only been a year ago though.

[00:28:09] Like maybe 18 months ago or...

[00:28:12] Yeah.

[00:28:12] Probably about 18 months ago.

[00:28:14] I was looking at WSP's ticker on my screen still.

[00:28:18] Okay.

[00:28:19] No, TerraVest.

[00:28:20] That would have only been a year ago.

[00:28:21] Yeah.

[00:28:21] Only a year ago.

[00:28:22] Okay.

[00:28:22] So that's my average price then around then.

[00:28:26] Well, I'm here to tell you it's not too late.

[00:28:30] The stock, yes, it's gone on this crazy run and it's not as cheap as it was.

[00:28:35] I mean, I think it's trading at around 20 times backwards operating profits now, trailing

[00:28:42] operating profits, but it was 10 a year ago.

[00:28:45] So the multiple has doubled, but the business has grown significantly too.

[00:28:51] And there's one thing that I really want to point out.

[00:28:53] So yes, it's not as cheap as it was, but it's two and a bit billion in market cap, CAD.

[00:29:01] So it's still relatively small.

[00:29:03] And I think there's a lot to like about TerraVest, by the way, ticker TVK.to.

[00:29:12] I think there's a lot to like as long as Dustin Hall wants to keep building this machine.

[00:29:19] And him being in his early 40s and the way he talks about the company on the investor

[00:29:27] day, there is a lot to do in these end markets that they're addressing right now.

[00:29:32] And I mean, the guy's like an engineer PhD in physics with a CFA.

[00:29:39] You know, it's like the perfect, and just the way he carries himself, you're like, this

[00:29:44] is the perfect combination of like a blue collar guy, but with that white collar chops to pull

[00:29:51] off incredibly accretive mergers and acquisitions.

[00:29:55] Like that's the exact kind of rare human being you want running a company like this.

[00:30:01] Yeah, because like doesn't the company make like storage vessels?

[00:30:05] Yeah.

[00:30:05] Things like that?

[00:30:06] Yeah, exactly.

[00:30:07] To recap, storage tanks, they're manufacturers of HVAC, propane tanks, storage tanks, transport

[00:30:15] vessels.

[00:30:16] You know, when you see these like compressed gas vehicles go on the highway, boilers.

[00:30:22] The key material in these niche end markets is not that they're tanks or something.

[00:30:27] It's that the main input for the manufacturing process is steel, which they get major economies

[00:30:34] of scale on.

[00:30:35] And so they've been a serial acquirer of these businesses.

[00:30:39] I think they have 400 some odd targets that they've identified.

[00:30:44] That number, I don't know for sure, but that's the number that I've heard with certain circles

[00:30:50] that I've talked about within North America of just like, for instance, they did that big

[00:30:55] 110 million acquisition of Highland tanks, which is, yeah, classic type of manufacturer

[00:31:01] of that equipment that you'd expect.

[00:31:04] But I'd like to just take a broader view instead of talking about the earnings as just

[00:31:10] why is this working so well?

[00:31:12] And I think that you'll find this quite interesting, which is the business has transformed and you

[00:31:19] got to look at the revenue segments to see this.

[00:31:22] And then I'll go on like Finchat and just like click the two revenue segments and stack

[00:31:26] them out and see percentage of the business, how it makes up over time to really see this

[00:31:33] visually.

[00:31:33] So products revenue means I make a storage tank and I sell it to Dan.

[00:31:41] That's revenue.

[00:31:43] Services revenue is I sell that tank to Dan, but Dan, you got to get the tank serviced once

[00:31:49] a quarter, once a whatever it is, whatever the frequency is.

[00:31:53] And because they are selling regulated, like there's a lot of safety around these things.

[00:32:02] I mean, you're bringing liquefied natural gas or something like that, right?

[00:32:08] You need to have a lot of regulation around this stuff, aka services.

[00:32:14] You got a clipboard check and cash those checks when it comes to these things, right?

[00:32:20] So services revenue has gone from $4.2 million in September 21 to $250 million.

[00:32:32] So basically gone from a pure play products business to 75% products, 25% services.

[00:32:41] And there's a lot more EBITDA and services.

[00:32:44] Yeah.

[00:32:44] So now you've created much higher margin.

[00:32:48] So now you've created this brilliant business like an ASML where I sell you this product, but

[00:32:55] you need to get it serviced.

[00:32:57] We need to build out these service contracts for you and we make it easy for you because

[00:33:03] you need to get them serviced.

[00:33:05] Like it's the law.

[00:33:07] And so they're regulated.

[00:33:09] There has some regulatory capture there as well.

[00:33:11] So the business has transformed.

[00:33:13] That revenue is a lot more recurring and a lot more profitable.

[00:33:18] So I think that might help some people understand why this has done so well, because it's gone

[00:33:23] from zero to basically 250 million in revenue in just two years.

[00:33:29] Yeah.

[00:33:29] I mean, you can look by the chart.

[00:33:31] I mean, next to nothing in even 2021, next to no service revenue.

[00:33:36] So I mean, like what did they effectively change like to actually grow this out?

[00:33:41] Like did they just start like offer maintenance or like that's where I'm kind of confused on

[00:33:48] that side of things.

[00:33:49] Like how did they change it that way?

[00:33:51] Yeah.

[00:33:52] Well, a combination of the existing assets and the assets that they were acquiring.

[00:33:56] Yeah.

[00:33:57] There's a lot of learnings for what they're acquiring, right?

[00:34:00] Like, oh, we're buying this tank company that has, let's just use simple math.

[00:34:05] You know, they do 75 million in revenue for selling what they manufacture, but 25 million

[00:34:11] in recurring annual service contracts.

[00:34:14] Yeah.

[00:34:14] Like, oh, that's a materially different and better business than just the manufacturing

[00:34:18] side.

[00:34:19] Yeah.

[00:34:19] So how do we take that, do more of those, but then also take those learnings and build

[00:34:25] them out into the existing assets?

[00:34:26] Yeah.

[00:34:27] I mean, it's, they've done remarkably well.

[00:34:30] I mean, you can just judge by, you know, a one-year stock chart.

[00:34:34] It's been one of the best performing stocks on the index, I think for, for the last couple

[00:34:39] of years.

[00:34:40] And again, one that I just, I kind of knew about, but just like, didn't, didn't understand

[00:34:45] on the surface level.

[00:34:46] Like you're talking, yeah, like it's a, it's a tank business.

[00:34:49] Like the sale of tank, like it just didn't really interest me off to, off the top of my

[00:34:53] head.

[00:34:53] I just kind of like glanced over it.

[00:34:55] So unsexy.

[00:34:56] Yeah.

[00:34:57] And then it just like, you know, one year later, it's 300% higher.

[00:35:02] Crazy.

[00:35:04] I'll dig up the file for you of the investor day that they did and just, just get comfortable

[00:35:11] with, with Dustin's strategy.

[00:35:13] I'll send that to you, but yeah, it's, it's one of those things where, yeah, the multiples

[00:35:17] doubled, but you're betting on this management team.

[00:35:21] It's like every time, you know, you find everyone's looking for the next constellation,

[00:35:26] right?

[00:35:26] Right.

[00:35:27] Everyone's looking for the next CSU.

[00:35:29] And CSU has always in when it was small and in its infancy and when it IPO'd and a few

[00:35:35] years after it IPO'd.

[00:35:36] It's like, is, are these people cut from a similar cloth as Mark Leonard?

[00:35:41] If yes, who cares if the multiple doubled?

[00:35:45] Yeah, exactly.

[00:35:46] And the business has changed.

[00:35:47] At that size.

[00:35:48] Yeah.

[00:35:49] And the business has changed.

[00:35:50] Obviously, you know, you're going from a hundred percent product revenue to 75% and 25% recurring

[00:35:56] higher margin service revenue.

[00:35:57] Obviously the multiple is going to change.

[00:35:59] The business is arguably more valuable.

[00:36:02] So yeah, it's, it's definitely, you know, I'm going to, I'm going to look into it a bit

[00:36:05] more over the next wall.

[00:36:06] And I mean, it's still, like you said, it's only a $2 billion.

[00:36:09] It's barely out of small cap territory.

[00:36:11] Yeah.

[00:36:12] Yeah.

[00:36:12] And, and still completely off the radar of any U S funds.

[00:36:16] Yeah.

[00:36:17] Completely.

[00:36:18] Right.

[00:36:19] So.

[00:36:19] Yep.

[00:36:20] Worth, worth a look.

[00:36:21] Yep.

[00:36:21] It's gone crazy, but the facts have changed and, and, and these types of visuals that I

[00:36:26] just pulled up here and, you know, the stuff I kind of share on my Twitter all the time

[00:36:31] at Bredo capital, you can check it out.

[00:36:32] But it helps you recognize the story and the insights.

[00:36:36] Yeah.

[00:36:37] All right.

[00:36:37] Let's talk about our darling, our Canadian darling.

[00:36:42] Yeah.

[00:36:43] So Shopify, they reported strong earnings.

[00:36:46] I mean, it would be blatantly, obviously just looking at a chart, like the stock just launched

[00:36:52] on earnings.

[00:36:52] I mean, the, the earnings would have been a couple of weeks ago now, but I mean, it was,

[00:36:56] it was still a pretty, pretty notable quarter for Shopify revenue of 3 billion earnings came

[00:37:02] in at around 38 cents per share Canadian.

[00:37:05] Those were both relatively in line with expectations.

[00:37:08] Revenue was up 26% year over year and free cashflow margins, which is effectively, it's

[00:37:14] kind of like a non, it's not, this isn't an actual like, you know, gap metric, but they

[00:37:19] kind of take the free cashflow as they generate relative to their revenue.

[00:37:22] So that came in, that actually grew from 16% to 19%, which effectively means they're, they're

[00:37:28] generating more free cashflow relative to the revenue they're generating as well.

[00:37:33] So this effectively, this means for every a hundred dollars in revenue that Shopify

[00:37:37] generates $19 of that ends up being free cashflow.

[00:37:41] Whereas a year ago, it only would have been around 16.

[00:37:43] So gross merchandise volume, which is, which is effectively all of the transactions that

[00:37:48] are put through Shopify's platform, whether or not Shopify processes a payment came in at

[00:37:54] 69.7 billion.

[00:37:55] So this is up 24% on a year over year basis.

[00:37:59] And as one of the, one of the faster growth rates in terms of, of GMV since the pandemic.

[00:38:05] And then when we look to gross payments volume, which would be the gross merchandise volume

[00:38:11] that Shopify puts through Shopify payments sat at 42.9%.

[00:38:15] So this is a pretty key KPI because these are the transactions that Shopify puts through its

[00:38:22] own payment platform, which pretty much allows them to collect the processing fee as well.

[00:38:27] And ultimately you want to see more GMV being put through Shopify payments.

[00:38:32] One thing to know when we go back to 2021, the percent of gross merchandise volume that was

[00:38:37] processed through Shopify payments was 50%.

[00:38:39] And now it sits at around 62%.

[00:38:42] A monthly recurring revenue came in at 175 million.

[00:38:46] That's a 27.7% year over year increase.

[00:38:49] And the company's merchant solution still makes up the bulk of revenue around 73% and came in

[00:38:54] at around 1.55 billion.

[00:38:56] So the merchant solution side of the business will be the one that supplies things like,

[00:39:00] you know, Shopify payments.

[00:39:01] They have a, you know, physical point of sale platform and just, you know, helping businesses

[00:39:05] set up accounts, things like that.

[00:39:06] It's subscription service makes up the other portion of the revenue, which was around 610 million.

[00:39:11] So this is the higher margin portion of the business, smaller, but higher margin.

[00:39:16] It's growing at a similar rate.

[00:39:18] So this end of the business effectively allows merchants to set up recurring subscriptions and

[00:39:23] provides, you know, a front end for the businesses to manage subscriptions for their customers.

[00:39:27] So like one quick example would be like, if you want, if you were a coffee shop or something and you,

[00:39:32] and you wanted to set up a subscription so that somebody could, you know, order recurring orders

[00:39:37] from you instead of like going on and buying it all the time, they allow you to set that up.

[00:39:42] So the company issued its fourth quarter guidance, which it expects to grow at a mid to high 20% range,

[00:39:47] gross profits to grow pretty much in line with last year's numbers and free cashflow margins

[00:39:52] to be similar to this quarter, which is a pretty notable increase on a year over year basis.

[00:39:58] And again, the stock went from like $125 to, you know, 160 plus just on the quarter.

[00:40:03] And yeah, it was just, uh, the boost in margins, just overall, you know, return to growth.

[00:40:08] It's just, it's kind of killing it now after, after a pretty rough 2023, I would say just

[00:40:13] because, you know, again, we talked about it with, with Loblaw, you know, a lot of that pandemic

[00:40:17] growth was kind of pulled in for Shopify and it was, uh, it was pretty hard for them to keep up.

[00:40:23] It's wild to think that after all this run up and the stock deserves to, I mean, they keep executing,

[00:40:31] right? So that stock deserves to be up. After all this run up, it shows you how absurd things got in 2022

[00:40:38] because we're still on a 33% drawdown from the peak.

[00:40:42] Yeah. After it's crazy, it's gone vertical up into the right with the latest results and we're

[00:40:50] still on a 33 and a half percent drawdown. Yeah. It's, uh, I mean, 2021 was absolutely crazy,

[00:40:57] but I mean, uh, like, I think that was Shopify. I actually, I think the CEO, like he even came

[00:41:03] out and apologized for it effectively. It's like they guided to way too much growth effectively.

[00:41:09] Like they, they essentially said that I believe they even said that like 2027 growth was going

[00:41:15] to be pulled back. You know, they're going to see that type of level of growth, like pulled way in

[00:41:20] because of the pandemic. And then they kind of revised that downwards. And I mean, I mean,

[00:41:25] if they're issuing that type of outlook, like, I mean, a lot of people, you know, the stock's going

[00:41:29] to trade at much higher valuations and, uh, it just, I mean, it was trading.

[00:41:33] They realized really quick, everyone with a store that rushed to get online, that's not going to

[00:41:39] happen for three years. It's going to happen for three, for three quarters. Yeah. Yeah. And I mean,

[00:41:44] it was trading at, what was it trading at? Uh, 65X EV to sales during the peak. Holy crap.

[00:41:53] And now it's down to sales.

[00:41:55] To sales. EV to revenue. Yeah.

[00:41:58] Yeah. And, and by the way, it wasn't even close to gap profitable.

[00:42:02] No, definitely not. It is now.

[00:42:04] It is now. Yeah. There's 65X sales with no gap profits. Crazy.

[00:42:10] Yeah. Yeah. It was a 2020, 2021 was a interesting time for a lot of companies. I mean,

[00:42:16] it just kind of shows you like a high quality company like Shopify. I mean, it got absolutely

[00:42:22] wrecked from November 21. It was, this would have been split adjusted, but it was $214 fell all the

[00:42:29] way down to $45, $42. Sorry. That would have been the low point. And that happened fast. That

[00:42:36] happened over the course. Basically at the price I sold it at two years ago, it was just kind of at

[00:42:41] this point where it was like, okay, it's still super expensive. I think I made a mistake over paying

[00:42:46] for this thing. Let's see how this competition shakes up because that's still a concern by the way.

[00:42:53] They have the best product, but it was pretty opaque at that time. Like, yes, there's the

[00:43:00] ecosystem they're building around it, but how much better of a builder is it than the other ones? I

[00:43:06] think they've really demonstrated that. They were also offloading the logistics business at the time.

[00:43:11] There was a lot of growth was slowing down. There was a lot of questions at the time, right? So I

[00:43:15] understand why the story was pretty unclear. Yeah. And I mean, they just keep developing new,

[00:43:21] you know, stickier subscriptions, keep merchants around. I mean, this was, this was a company that

[00:43:26] I own. I think I bought it in 2018 and then I sold it in early 2021. And I was like, this company is,

[00:43:35] it's way too expensive. And then for a little bit of that, like it just kept going up and up and up

[00:43:41] and up. And I'm like, Oh my God, did I make a mistake? That's painful, isn't it?

[00:43:45] Yeah. But I mean, it's back to pretty much.

[00:43:48] But that's happening and you're not going to be like, okay, I'm back in. It's 65 times.

[00:43:53] Yeah, exactly. You just got to like, and now if you look at it, it's, it's effectively backed,

[00:43:59] like split adjusted back to the price that I sold it at. So, I mean, it's, it's a great company,

[00:44:04] but I mean, it just goes to show you like sometimes valuations can get out of control.

[00:44:09] Out of control. Absolutely out of control. You know, this is a classic example of a founder led

[00:44:15] company, you know, between Toby and Harley. They're still so in the weeds. Like I follow them

[00:44:22] both on Twitter and you know, you're a great, you know, there's a great founder of this public

[00:44:27] company when they're like helping customers on Twitter, like customer support, you know,

[00:44:33] like they're in there, like they care deeply. And as I was hinting at the beginning of the episode,

[00:44:41] the two of them are all like on a make Canadian entrepreneurship great again crusade right now,

[00:44:48] because that's who they serve, right? They serve entrepreneurs and builders and dreamers who want

[00:44:54] to make, make a business online and sell things online and boost the GDP of the internet. Right.

[00:45:00] And so they are aggressively making that vocal on Twitter and they have some interesting thoughts.

[00:45:09] And I think that the, the media and some folks have been quick to immediately shut off what they

[00:45:16] think because they're billionaires, right? Yeah. It's like, you only care about your business,

[00:45:22] right? It's so easy to just like attach their incentives to what their political stance is,

[00:45:28] but it's like, yes, they're billionaires because they've created an insane amount of value for

[00:45:35] so many people and built helped so many people build businesses and, and you know, online companies.

[00:45:42] It's they deserve to capture the unit economics of what they've created.

[00:45:47] Yeah. I mean, do you imagine like how many businesses Shopify saved during the pandemic? Like when,

[00:45:54] you know, every brick and mortar was shut down. I mean, that was that it was huge value. And I mean,

[00:45:59] obviously you've seen it, like businesses, like their acquisition in terms of like small businesses

[00:46:06] that went to the platform, it just went through the roof and they've stuck around, right? Like

[00:46:11] it's so effective that they haven't gone anywhere. Yeah. They've went and, you know,

[00:46:15] opened back up their brick and mortar stores, but the vast majority of, of, you know, retailers are,

[00:46:20] are sticking with it because it's such an effective platform.

[00:46:24] So this episode comes out on Thursday, November 28th, which means black Friday being the 29th.

[00:46:32] And they do that. They have this really cool like day of black Friday

[00:46:39] thing that just shows where all the transactions are happening around the world. It's this globe and

[00:46:44] it's, it's pretty cool. I don't know how much of it is real, how much has been animation, but

[00:46:48] they, they go pretty in detail about what's being moved, what the type of products are,

[00:46:54] how much gross merchandise volume. I'm just looking at Finch at here in the, of course,

[00:47:00] the holiday Q4 is their big one. So they did 75 billion of gross merchandise volume

[00:47:10] in that quarter alone last year. What's it on a TTM? So almost 300 billion of gross merchandise volume

[00:47:20] on the platform in the last 12 months. Yeah. It's a, it's gigantic. I mean, I wonder,

[00:47:28] I'm interested to see how much they move this, this black Friday. I mean, I think the consumers,

[00:47:34] you think it'll be a record. You think it'll be a record? I mean, yeah, I would imagine,

[00:47:39] but I just kind of wonder, you know, how consumers are obviously pinched right now. So, I mean,

[00:47:46] is it going to be as good as, you know, what it is? There's just so much more volume moving on

[00:47:50] Shopify that it out, it will outweigh consumer, you know, it's like Paul Graham of Y Combinator.

[00:47:58] He basically says like the best times to build startups or build companies are in really tough

[00:48:04] times economically because you know, really quickly if customers care about your, what you're doing,

[00:48:10] if you're actually solving a problem or if it's just like frothy excess capital going into your

[00:48:17] company because there's frothy excess capital going into your company versus like you're solving a real

[00:48:21] problem and customers are like, yeah, the economy is terrible, but you made my day better and I'm going

[00:48:26] to pay for it. Well, yeah, I mean, look back to 2021. I can't remember the numbers like right off

[00:48:32] the top of my head, but me and Simone were talking about it and like, I believe they had like 20 or

[00:48:36] 25 TSX listed companies like IPO during that time and like, like 60 or 70% of them aren't even trading

[00:48:43] anymore. Like it was just, it was frothy. And I mean, yeah, when, when times get tough, I mean,

[00:48:50] you're really going to know if somebody, if somebody truly values your business and whether you provide,

[00:48:55] you know, a pretty sticky need or if you're just, if people just got money to toss around.

[00:49:01] Yeah. Well, thanks for listening folks. That is a good little Lollapalooza of Canadian stock discussions.

[00:49:09] Refreshing for, for myself too, because you know, we talk a lot about big picture stuff and there's just so

[00:49:16] much to talk about with us markets too, but there are some gems that we try to uncover on the, on the Canadian

[00:49:24] stock market. And we've covered a good amount of them. I was looking, I don't know if you're listening

[00:49:29] to the pod, but I brought up stocks on our watch list for MDA space. That company is crushing. I'm

[00:49:34] sure you guys look at it maybe on stocktrades.ca. It's MDA.to. They have won some massive contracts

[00:49:43] recently and the backlog has exploded. So I put this on the stocks on our watch list segment recently

[00:49:50] and damn, I should have bought the stock. I didn't, but still, still won again to keep on the radar.

[00:49:58] Still only trading at 16X free cashflow.

[00:50:03] And 3.2 billion in market cap, right? So like,

[00:50:07] it's very small,

[00:50:09] still small. And when these things are that size on the TSX, you just, I don't have that concern in

[00:50:16] the back of my head, like seeing the price go haywire, like, Oh, U S FOMO. Yeah. Got ahold of this.

[00:50:22] Yeah. I'm not concerned about that. No. Yeah. I mean, typically, yeah, exactly. Like there's just

[00:50:26] not enough interest or, you know, money flowing into the, there's no flows. Yeah. Yeah. So when

[00:50:32] something like this happens, it's usually, uh, you know, because of fundamentally driven, fundamentally

[00:50:37] driven. Yeah, definitely. Thanks for listening folks. Uh, coming close to the end of the month

[00:50:43] here. And, uh, you know, you, myself, uh, self, Simone will have our, uh, monthly portfolio updates

[00:50:52] on joint TCI.com. It is black Friday for Finchat. We offer two big sales a year, usually one around

[00:50:59] like a big product release and one around black Friday. So it is 25% off automatically when you

[00:51:06] check out on Finchat from Thursday, November 28th to the following cyber Monday. So it's just four or

[00:51:16] five days of 25% off. It's the best sale you can get all year. It should automatically check you out,

[00:51:22] but if it doesn't, you can use code manually black Friday, 2024. That is code black Friday,

[00:51:28] 2024, but it should manually do it for you on checkout. Thanks for listening. We'll see you in a few days.

[00:51:32] Take care. Bye-bye. The Canadian investor podcast should not be construed as investment or financial

[00:51:39] advice. The hosts and guests featured may own securities or assets discussed on this podcast.

[00:51:45] Always do your own due diligence or consult with a financial professional before making any financial

[00:51:52] or investment decisions.