Hottest IPO of the year ... THI
- Thread starter Samson77
- Start date
I live in the Great :Lakes region, and they just opened up 4 new Tim Horton's in my town. People here are flocking to them, me included
Too bad WR Hambrecht isn't a co-underwriter, or else I'd buy some Dutch style.
Too bad WR Hambrecht isn't a co-underwriter, or else I'd buy some Dutch style.
Quote from volatilitypimp:
I live in the Great :Lakes region, and they just opened up 4 new Tim Horton's in my town. People here are flocking to them, me included
Too bad WR Hambrecht isn't a co-underwriter, or else I'd buy some Dutch style.
I'm convinced they put cocaine in the doughnut batter and in the beans because they are seriously addicting.
We have line ups at most of the locations 5-10 cars deep most days.
This baby going public tomorrow or what?
Tim Hortons Announces Pricing for Its Initial Public Offering
Mar 23 at 18:44
OAKVILLE, Ontario--(BUSINESS WIRE)--March 23, 2006--
Tim Hortons Inc. announced the pricing of its initial public offering of
29 million shares of common stock, at a price of C$27.00 (U.S.$23.162).
Trading is expected to begin on the New York Stock Exchange and the Toronto
Stock Exchange on Friday, March 24, 2006. The underwriters, in consultation with
Management, have targeted approximately 60% of the share allocation to Canadian
investors.
The Toronto Stock Exchange has conditionally approved the listing of the
Company's common stock under the symbol "THI." The New York Stock Exchange has
approved the listing of the Company's common stock under the symbol "THI."
Following the offering, Tim Hortons will remain 82% to 85% owned by
Wendy's International, Inc. The Company has granted the underwriters the option
to purchase up to an additional 4.35 million shares of common stock from Tim
Hortons at the initial public offering price less the underwriting discount to
cover over-allotments, if any.
"This offering represents an incredible milestone and accomplishment in
our 41-year history," said President and Chief Executive Officer Paul House. "I
would like to extend my personal thanks to our store owners and their dedicated
employees, our entire staff and the many business partners and friends of Tim
Hortons for making our Company what it is today."
"This is the first step in Wendy's plan to unlock the stand-alone value of
Tim Hortons, which is a strategic initiative that we announced in July," said
Wendy's International, Inc. Chairman and Chief Executive Officer Jack
Schuessler. "The initial public offering will allow the market to establish a
trading value for Tim Hortons."
Wendy's has said it intends to spin off the remaining portion of Tim
Hortons as soon as practical, which is expected to occur by December 31, 2006.
Goldman, Sachs & Co. and RBC Capital Markets are the joint book runners
for the offering. The co-leads are JPMorgan and Scotia Capital. The other
co-managing underwriters in the syndicate are Bear, Stearns & Co. Inc., CIBC
World Markets, Cowen & Company, Harris Nesbitt, Lazard Capital Markets, Merrill
Lynch & Co. and TD Securities.
Tim Hortons IPO statement
A final supplemented prospectus containing pricing information will be
filed with the applicable Canadian regulatory authorities and will be available
at www.sedar.com. U.S. residents may obtain a copy of the final prospectus of
Tim Hortons Inc. by contacting Goldman, Sachs & Co. at (212) 902-1171 or RBC
Capital Markets at (212) 428-6532.
Source: Tim Hortons Inc.
Mar 23 at 18:44
OAKVILLE, Ontario--(BUSINESS WIRE)--March 23, 2006--
Tim Hortons Inc. announced the pricing of its initial public offering of
29 million shares of common stock, at a price of C$27.00 (U.S.$23.162).
Trading is expected to begin on the New York Stock Exchange and the Toronto
Stock Exchange on Friday, March 24, 2006. The underwriters, in consultation with
Management, have targeted approximately 60% of the share allocation to Canadian
investors.
The Toronto Stock Exchange has conditionally approved the listing of the
Company's common stock under the symbol "THI." The New York Stock Exchange has
approved the listing of the Company's common stock under the symbol "THI."
Following the offering, Tim Hortons will remain 82% to 85% owned by
Wendy's International, Inc. The Company has granted the underwriters the option
to purchase up to an additional 4.35 million shares of common stock from Tim
Hortons at the initial public offering price less the underwriting discount to
cover over-allotments, if any.
"This offering represents an incredible milestone and accomplishment in
our 41-year history," said President and Chief Executive Officer Paul House. "I
would like to extend my personal thanks to our store owners and their dedicated
employees, our entire staff and the many business partners and friends of Tim
Hortons for making our Company what it is today."
"This is the first step in Wendy's plan to unlock the stand-alone value of
Tim Hortons, which is a strategic initiative that we announced in July," said
Wendy's International, Inc. Chairman and Chief Executive Officer Jack
Schuessler. "The initial public offering will allow the market to establish a
trading value for Tim Hortons."
Wendy's has said it intends to spin off the remaining portion of Tim
Hortons as soon as practical, which is expected to occur by December 31, 2006.
Goldman, Sachs & Co. and RBC Capital Markets are the joint book runners
for the offering. The co-leads are JPMorgan and Scotia Capital. The other
co-managing underwriters in the syndicate are Bear, Stearns & Co. Inc., CIBC
World Markets, Cowen & Company, Harris Nesbitt, Lazard Capital Markets, Merrill
Lynch & Co. and TD Securities.
Tim Hortons IPO statement
A final supplemented prospectus containing pricing information will be
filed with the applicable Canadian regulatory authorities and will be available
at www.sedar.com. U.S. residents may obtain a copy of the final prospectus of
Tim Hortons Inc. by contacting Goldman, Sachs & Co. at (212) 902-1171 or RBC
Capital Markets at (212) 428-6532.
Source: Tim Hortons Inc.
LH,
Much obliged.
Much obliged.
just to balance things out, I thought I'd throw a bear perspective in the mix:
this is from: http://retailstockblog.com/article/7964
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Founded in 1964, Tim Hortonâs is an extremely popular coffee chain in Canada. Based on sales, they are the largest quick-service restaurant chain in Canada. Since being acquired by Wendyâs in 1995, Tim Hortons Canada has grown from 1,180 outlets to 2,597. Their sales have grown at a compounded annual rate of 17.6% during this same period. These numbers are impressive, but it is extremely important to know that growth has slowed. For fiscal 2005, the company reported sales of $1.5 Billion, which represents a year over year increase of 10.7% â significantly lower than the aforementioned 17.6% top-line growth rate. Excluding charges, the companyâs fiscal 2005 profit of $191 Million represents an increase of 9.5% over the previous year. All of these figures reported by Tim Hortons are in Canadian dollars.
As mentioned, growth has slowed, and this is a trend that I see continuing. Because of their already established position in Canada, their growth prospects are limited. Currently, there is one Tim Hortons for approximately every 11,500 Canadians. That is more than double the ratio of one McDonalds for every 21,700 Americans. There are nearly as many Tim Hortons per Canadian as there is McDonalds, Wendyâs, or Burger King combined per American. Given these figures, the market for Tim Hortons in Canada appears to be closing in on saturation. Obviously, this does not bode well for future growth.
With growth prospects lacking in Canada at this point, Tim Hortons will need to expand into the United States. Based on past results of the companyâs state-side operations, significant growth in the U.S. appears unlikely. Without a strong brand name, increased competition, and higher construction costs, outlets in the states have been much less profitable and willing qualified franchisees have been hard to come by.
The target price range for the IPO is currently $18-$20, which would value the company at nearly $4 Billion. Based solely on a price to sales ratio, I feel they are overvalued should their IPO come in at this range (Tim Hortons would have a P/S of about 4 when valuing them at $4 Billion, McDonalds has a P/S of 2.2 for a comparison), especially given their limited growth prospects.
Given the recent success of similar IPOs, most notably Chipotle, I see this stock coming in above their target range, further overvaluing them. Chipotle has the growth prospects to warrant a 100% first day jump, Tim Hortons prospects dont warrant much of a jump at all. Based on investor sentiment in this sector though, I believe they will jump.
Taking into account their high price to sales ratio, limited growth potential, and a first day run-up that I am expecting; I would advise you to stay away from this IPO. You Can Be a Stock Market Genius suggests investing in Spin-Offs, given that they historically have outperformed the broad market by about 10%, but only after researching the company thoroughly. From the research that I have done and presented thus far, I donât see Tim Hortons yielding results reminiscient of Spin-Offs as a whole, I actually see them underperforming in the first year following their IPO. As always, put in your own due dilligence, maybe you will find something different then I have. As I see it though, I strongly advise against getting caught up in any hype that may follow Tim Hortons and its stock for the short term. I am predicting that one year from their IPO, Tim Hortons shares will be exchanging hands for less than their first dayâs closing price.
this is from: http://retailstockblog.com/article/7964
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Founded in 1964, Tim Hortonâs is an extremely popular coffee chain in Canada. Based on sales, they are the largest quick-service restaurant chain in Canada. Since being acquired by Wendyâs in 1995, Tim Hortons Canada has grown from 1,180 outlets to 2,597. Their sales have grown at a compounded annual rate of 17.6% during this same period. These numbers are impressive, but it is extremely important to know that growth has slowed. For fiscal 2005, the company reported sales of $1.5 Billion, which represents a year over year increase of 10.7% â significantly lower than the aforementioned 17.6% top-line growth rate. Excluding charges, the companyâs fiscal 2005 profit of $191 Million represents an increase of 9.5% over the previous year. All of these figures reported by Tim Hortons are in Canadian dollars.
As mentioned, growth has slowed, and this is a trend that I see continuing. Because of their already established position in Canada, their growth prospects are limited. Currently, there is one Tim Hortons for approximately every 11,500 Canadians. That is more than double the ratio of one McDonalds for every 21,700 Americans. There are nearly as many Tim Hortons per Canadian as there is McDonalds, Wendyâs, or Burger King combined per American. Given these figures, the market for Tim Hortons in Canada appears to be closing in on saturation. Obviously, this does not bode well for future growth.
With growth prospects lacking in Canada at this point, Tim Hortons will need to expand into the United States. Based on past results of the companyâs state-side operations, significant growth in the U.S. appears unlikely. Without a strong brand name, increased competition, and higher construction costs, outlets in the states have been much less profitable and willing qualified franchisees have been hard to come by.
The target price range for the IPO is currently $18-$20, which would value the company at nearly $4 Billion. Based solely on a price to sales ratio, I feel they are overvalued should their IPO come in at this range (Tim Hortons would have a P/S of about 4 when valuing them at $4 Billion, McDonalds has a P/S of 2.2 for a comparison), especially given their limited growth prospects.
Given the recent success of similar IPOs, most notably Chipotle, I see this stock coming in above their target range, further overvaluing them. Chipotle has the growth prospects to warrant a 100% first day jump, Tim Hortons prospects dont warrant much of a jump at all. Based on investor sentiment in this sector though, I believe they will jump.
Taking into account their high price to sales ratio, limited growth potential, and a first day run-up that I am expecting; I would advise you to stay away from this IPO. You Can Be a Stock Market Genius suggests investing in Spin-Offs, given that they historically have outperformed the broad market by about 10%, but only after researching the company thoroughly. From the research that I have done and presented thus far, I donât see Tim Hortons yielding results reminiscient of Spin-Offs as a whole, I actually see them underperforming in the first year following their IPO. As always, put in your own due dilligence, maybe you will find something different then I have. As I see it though, I strongly advise against getting caught up in any hype that may follow Tim Hortons and its stock for the short term. I am predicting that one year from their IPO, Tim Hortons shares will be exchanging hands for less than their first dayâs closing price.