As a customer, i don't like the deal. It is questionable if LB can maintain the efficience of the existing T&T supply chain, LB lacks the flexbility and not as nimble as Asian Mgmt style. Op cost of T&T may rise after, and will be passed to consumers...
-hakama(Ippon);
2009-7-24(#2445@52)
I’m not pleased with Loblaw’s move to acquire T&T. I doubt Loblaw will keep T&T as is, but let's hope for the best, at least we may see more T&T locations in GTA.
-specialday(Joyce, CTP);
2009-7-24(#2446@52)
Good, we can use our PC points at T&T now
-tljswallow(tljswallow);
2009-7-24(#2448@52)
能积多少分啊
-vetra(豆泡果 之 多泡泡);
2009-7-24(#2449@52)
+1
-dandan2008(君子兰);
2009-7-24(#2460@52)
personally...I don't want to see this happen...
-poisonrose(Rosemary);
2009-7-24(#2450@52)
That's really a good deal for T&T investors.
-yueren(爱拿铁);
2009-7-24(#2451@52)
Sold the company with $540mm rev for $225mm? although i don't know the real CF of T&T, still, that does not sounds like a sweet offer...
-hakama(Ippon);
2009-7-24(#2452@52)
Exactly! The offer doesn't sound right.
-jinx99(ABCP);
2009-7-24(#2454@52)
The P/Sales ratio for this sector is below 0.4 (see Warlmart is 0.47, Costco is 0.29). If put T&T in the middle, it should worth less than CAD170M.
-yueren(爱拿铁);
2009-7-24(#2456@52)
P/S of 0.4 is public listed retailers, actually I just pick a relative reference from the market, and did a rough estimate. We have no internal data.190M cash is purely short-sighted, I believe there might be something wrong in future growth perspective. These guys take heavy cash must want to get out of the biz ASAP.
-yueren(爱拿铁);
2009-7-25{170}(#2462@52)
Hard to judge by just looking at the annual sales. T&T has 17 stores, who knows how many of them are profitable.
-specialday(Joyce, CTP);
2009-7-24(#2457@52)
Short-sighted, money-but-not-business-oriented entrepreneurs. What a regretable deal it is!
-lifeitself(Enjoy&Learn);
2009-7-24(#2455@52)
I think the board of T&T definitely know those number. Yet they still "undersell" this grocery chain. To me, this only means that they need cash desperately now.There are some reasons behind this deal inside T&T. This also reminds me of the SAMS Club's closure couple months ago.
-bridge2k(bridge2k);
2009-7-25{119}(#2463@52)