What Happened to Tim Horton's Today?
Just check out their chart from today:
I correctly predicted a heavy up day for Tim Horton's today. Remember, they were planning to sell at $21 a couple weeks ago. The stock opened up sharply but went down from there.
I didn't buy it of course and here are some reasons why.
-I was not comfortable with all the hype in the media. Usually when everyone thinks something will go up, it goes down. You have to invest before the crowd to make serious money.
-Wendy's raised their price by several dollars just before the IPO. This is good for Wendy's shareholders but not as good for someone planning to buy Tim Horton's today. (Actually if I had to buy Tim Horton's or Wendy's, I would buy Wendy's because they are not as hyped and they still own 85% of Tim Horton's which they will be giving to Wendy's shareholders before the year is done.
-Face it, the restaurant business is not the hot sector right now. Commodities and energy are/is. Companies from other sectors might go up but it's much harder to find them. Most commodity companies are going up right now whether they are good or not. Our job is to find the best ones which have the best chance of going higher than the average company.
I will be working on the weekly newsletter over the next few hours and I will do my best to send it out this evening so you guys can read it over the weekend.
If you are on the list but don't get an email this weekend, check your junk box and if it's not there either send me a message and I'll do my best to sort things out.
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