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Sunday, August 31, 2014

Saying goodbye to my Tim Hortons (THI) shares. Bye bye!

Long weekends are the perfect time to just do all the laundry and cleaning that need to be done before hitting for real in the month of September.

August 27th was my birthday as you know and I spent the special day at work and I had one thing running in my mind, not the fact that I was turning 34 since there's no sign of aging on my pretty face and I don't feel any difference between 24 and 34. My problem on that extra special day was not with aging, but on what to do with my Tim Hortons Inc. shares now that Burger King in on the way to buy the company.

I have to say I was very surprise with that acquisition. Is there any other companies more Canadian than Tim Hortons. It's almost an outrage to see our American friends getting their hands on our Tim Hortons! The world is all so f up anyway... And now its just even more lol... Anyway, you got the idea of what this mean. My concern was: to sell or hold my Tim Hortons Inc. (THI) shares?

I went through a few acquisitions deal with other stocks I had been holding in the past so I knew how it was going to work. First the company that buy the X company offer an amount per share to buy all of the shares of X. At the time, I went through an article saying that Burger King was buying Tim at something like just a bit more than $60 per share - $63 I thing. shortly following that Burger King made its coming out about buying our Canadian Tim, Tim Hortons stock value pop up to $88 per share. That had never happen before. So what was the best thing to do: let Burger King buy Tim at $63 or cash in high profits like now... I knew I had to act fast. My idea was pretty much set on selling all of my Tim Hortons shares now, but I had a little doubt. While hitting back home, I had received in my emails Derek Foster latest newsletter. Derek Foster was selling his Tim Hortons shares or already did. From that point, I had no more doubt, if Derek Foster was selling his Tim Hortons, I was going to do the exact same thing. And in the morning of August 28th, I was flushing all of my Tim Hortons shares and cashing in the cash!

In my case, I did not made a fortune out of the deal. I was holding just a few shares of Tim Hortons inside my RRSP and I decided to buy Tim because its a stock that Derek Foster had in his portfolio. If Derek hold a stock and that's its a Canadian stock and as long as its not Manulife or Power Corporation - I am going to get the same things as the guy. 

My story with Tim Hortons ends on August 28th 2014.

I currently have a $1 200 in cash in my RRSP just waiting to be invest again, but no idea yet.

My non-registered is on the $143 658.20. It seem to me like this baby is going to hit on to the 150k all by itself without the help of new investment! YEAH! The investment game is like a bit too easy these days but sexy is not going to complain.


Anonymous said...

"3G Capital will purchase the company at $65.50 per-share; existing shareholders will receive $65.50 in cash and 0.8025 shares in the new holding company per-share—all-cash ($88.50) and all-shares (3.0879) options will also be available. 3G Capital (which currently holds a 71% majority stake in Burger King) will hold a 51% majority stake in the new company, Tim Hortons' existing shareholders will own 22%, and Burger King's will own 27%." - Source wikipedia

Three options for THI shareholders.
1. all cash 88.50 a share
2. 66.50 cash and 0.8025 shares of new company
3. all shares of 3.0879 in new company

Unknown said...

hmm.. ever think that Derek Foster sends that newsletter out to encourage his followers to sell so that the price will drop and he can buy in..? I got the newsletter as well but am still sitting on my shares.

Sunny said...

Hi Stacey,

I had been following Derek Foster since 2007 - its now been 7 years. I read all oh his books multiple times. I even wrote a couple times and got answered ALL the times to everything I was asking.

I can assure you, 100 % that Derek wrote that newsletter about Tim because he might had received some questions from readers about Tim.

The reason why is because Tim is a stock that appears in Derek video series - so you can imagine the number of emails he was receiving when Burger King cane out with the news they were buying Tim!

All readers lost like me, just willing to ask Derek: tell me what to do with my Tim stocks.

Unknown said...

I love Derek Foster too. His books are what got me started on investing and the reason that I found your blog. It's just that since investing, I've seen how the slightest article or newsletter can cause stock prices to change so I am always careful and I always question the motives of anything in the public eye...regardless of who wrote it. I got Derek's newsletter too but I didn't actually take the advice. We will see who is right I guess..

AlbertP said...

Wow, goodjob!

Je vous trouve vraiment talentueuse, vous avez réussi à vous bâtir un portefeuille solide et à réaliser des gains assez impressionnant.

alex said...

I went thru a similar case in January when gold Corp made a bid for takeover of osisko mining. my osisko shares soared, so I used stop limit orders to lock in profits and watch the price go higher and higher. keep raising the stop and limit prices. eventually sold on a small downturn but made much more than if I had sold right away. stop limits are a great way to lock in gains and get more if price keeps rising. burger king owned by Brazilian company


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