Sunday, January 26, 2014
On January 24th, I purchased 100 shares of Tim Horton's (THI) on the Toronto Stock Exchange. The purchase price is $59.70 plus $4.95 commission for a total of $5974.95.
Tim Horton's is a restaurant that serves coffees, specialized coffees, teas, donuts, timbits, muffins, soups, sandwiches etc. This is a no frills coffee shop. The morning coffee is a daily ritual for most people on their way to work.
Tim Horton's first store (Tim Horton Donut Shop) opened in Hamilton, Ontario in an old gas station. The restaurant was owned by Tim Horton (Toronto Maple Leaf hockey player) and a police man named Ron Joyce. Tim Horton unfortunately was killed in a motor vehicle accident in 1974. Ron Joyce then bought out the family's share of the business for 1 million dollars.
Currently, Tim Horton's has about 4300 hundred stores, with about 3400 being in Canada. As of Friday's close, THI trades at a P/E 21.13 and a yield under 2%. I believe THI is slightly over valued.
I am going to sell a $60.00 covered call on this stock. I have put in my option order already. I am slightly bullish on this stock.