Usually when you hear “little-known Canadian stock” you think, “hey, that’s probably some miner lying about their assay samples out of a storefront office in Vancouver” … but this one’s a little different.
To start with, it’s not a mining stock, and has nothing to do with gold or tar sands or pipelines or any of the stuff most investors think about with regards to Canadian investments (though yes, there are plenty of big mainstream Canadian companies, that are global competitors in other businesses). This is a pick from the folks at Motley Fool Canada, and it’s some kind of restaurant company.
No, it’s not Tim Horton’s (THI) — that would be too convenient after yesterday’s look at Dunkin’ Donuts. But DNKN was pitched as Ian Wyatt’s “Top Stock for March 2014” … so maybe we can set up a little cage match between that pick and whatever one turns out to be teased here by Motley Fool Canada.
What’s Motley Fool Canada, you say? Well, like some of the other big newsletter publishers, notably Agora (with their Fleet Street Publications in London and South Africa, and Port Philip Publishing in Australia), the Fool is reaching out its tentacles around the globe. They have semi-independent websites in most of the large English-language countries, including fairly new ones in Australia and Canada and a longstanding partnership in the UK, and in recent years they’ve started to launch premium newsletters in those countries as well, sometimes staffed by folks who sound familiar from their time writing for the Fool here in the US (the latest one seems to be Motley Fool Singapore, which has just a couple writers and no premium newsletters yet). The letters borrow their marketing chops from the American mothership, with local twists — Motley Fool Canada’s stuff so far seems almost identical in structure and tone to the US Motley Fool teaser ad letters, though Australia and the UK seem to be a little more restrained … teaser pitches must get more regulatory scrutiny (or different scrutiny, at least) in those countries.
The letter they’re pitching today is Stock Advisor Canada, which presumably is expected to follow in the footsteps of David and Tom Gardner’s flagship Stock Advisor newsletter, which has been around for about a dozen years and which we’ve probably covered more than any other single newsletter here at Stock Gumshoe.
(Stock Gumshoe, in case you’re wondering, has just had its seventh birthday… it’s OK, no one else sent a card, either — and the first article I wrote about the Fool was published exactly seven years ago today. Incidentally, of the 15 or 20 stocks I pulled out of the Thinkolator in those first two weeks there have been four that disappeared completely or went bankrupt and several others that are down 90%+ in seven years. Whole Foods Market (WFM), that first Stock Advisor teaser pick I covered, has more than doubled since then — so it’s one of the better ones from those early months, but is well short of the 2,400% gain in Netflix from when the Fool brothers started teasing that rocket a few months later.)
But I’ve gone off the track a bit — what was it we were looking for? Oh, yes, that super secret Canadian stock being teased by Iain Butler for Stock Advisor Canada … let’s jump right into the clues now:
“In just a moment, I’ll discuss what I believe is one of the best opportunities for Canadian investors this year — a rapidly expanding franchise company with the potential to make you a small fortune.
“The Canadian company I’m talking about has outperformed Starbucks by more than 10 times over the past decade! It’s already seen the value of its stock skyrocket from 65 cents a share in 2004… to $5 a share in 2008… to a high of $32 today – an eye-popping 4,800% gain in less than 10 years…
“The company I’m talking about is cashing in on the craze for “Quick Service Restaurants” (QSR) here in Canada—the franchise trend that has already built a $21.7 billion industry just in Canada alone.”
So that gives us a few ideas, but it’s not specific enough for a real answer … yet.
Back we go into the ad, digging for more clues:
“In each decade, North America consumers have latched onto a fast-food craze and made early investors rich as Midas.
“And each time, investors who spotted these trends and took decisive act