imported_JoonyaSI

It’s Canada’s favourite doughnut and everyone wants a piece.

Shares in the Tim Hortons coffee chain began trading on the Toronto and New York stock exchanges Friday with an initial public offering of $27 per share.

Many were expecting an explosion of sales as investors try to buy up a piece of a Canadian institution – even though it was sold to the U.S. owner of burger joint Wendy’s a decade ago.

"I haven’t seen this kind of excitement since the Jays’ World Series parade in the 1990s," remarked Steve Kee of the Toronto Stock Exchange of the free doughnuts being offered at a specially set-up Tim Hortons tent in the financial district to coincide with the IPO.

Tim’s is poised to raise about $780 million, with the remaining 82 to 85 per cent stake held by the fast food chain to be spun of by the end of the year.

About 60 per cent of shares have been allocated for Canadian investors.

The Ohio-based company calls it the "first step" in unlocking the coffee shop’s value.

However, analysts warned against paying too much for a chain that’s already saturated the market here in Canada. They’re cautious as well about its prospects in the U.S., as expansion there isn’t nearly what it has been in Canada.

The $27-per-share price tag - up from an initial amount of $21 to $23 - values Tim Hortons at about $4.35 billion.

"This offering represents an incredible milestone and accomplishment in our 41-year history," president and CEO Paul House said Thursday.

Founded by Toronto Maple Leafs defenceman Tim Horton and former Hamilton police officer Ron Joyce, the doughnut chain was sold to Wendy’s in 1995 for $580 million.

At the time there were 1,180 locations in Canada and 17 in the United States.

Last year Tim Hortons earned a profit of $191.1 million



DISCUSS

imported_TuttiGirl

I was thinking of it, but unsure how I got about it? anyone know? and do I have to buy a minimum amount?

DumbasSi

I read in the paper yesterday that all of the stocks had already been bought by Underwriters and that when they are re-sold to the public, it will be a minimum of a 100 shares.

cibs

yeh you have to call a broker and then buy throught them... i'm sure the brokers may be able to split up the number of shares you buy... but even then the warnings they said sound pretty decent... the market is so saturated here that i don't know if it's going to explode at all, so you might not make tha tmuch money... i'd rather make money than just keep the money i have now if i'm investing in stocks...

imported_JoonyaSI

I'll buy em once it crashes when they cant sell jack all in the States ! till then its the waiting game

Nova_Dust

You need a good amount of money initially if you want to buy stock at that price. Call TD Waterhouse and set up an account. 3 cents per share - you either pay a minimum of 29 dollars per transaction for less than 1000 shares; or you pay 3 cents for more than 1000 shares.

-Akira-

THEY SOLD IN 3 AND A HALF MIN WENT UP 43 PERCENT

imported_gatherer

if you can get in at the IPO price you should do ok when the price sky rockets from every tom dick and harry wanting it but the idea is for short term quick gain.

Tim Hortons will be a blue chip stock in no time. like they said the market is saturated in Canada and so therefore there is not much potential for growth here and USA growth has been slow and very competitive.

I'm predicting it hits 40 dollars... but stablizes there or dips down to 35

but I'm no stock market guy so I'm just talking out of my *** so I highly recommend you don't listen to me ....

imported_gatherer

current price 35.91

http://www.tsx.com/HttpController?Ge..._12=&x=39&y=19

fujative

Yeh, I am in school for finance right now (which means I will come out as a stockbroker), our teacher was telling us how this is a BAD investment, it is true how the market in canada is saturated and the american market is full of doughnut places as well, also if you look at current market trends our society is going towards a "fat free" lifestyle with means that we will be eating less doughnuts and more health food, also there are many many people who want to go to an up-scale place such as starbucks or places like central perk off friends (expensive shops where you pay to chill), americans do not care if Tim Hortons is a "canadian tradition", they want AMERICAN food in their bellies, so yea, I for one will not be jumping on the band wagon.

imported_Joker

hew told u it was a bad investment casue he was one of those small time guys who couldnt get in on any... the media hype has brought too much to this whole thing.. and the big companies have already gobbled everything ..

Younes Si

That's true, but there will always be thousands and thousands of people who don't give a sihit about their diet, and that it's not always about the donuts, if you haven't noticed, they sell more coffee then donuts, so Tim Hortons is still going strong and not gonna die, because all this health bullsihit...........

I myself like a good meal and don't go to fast foods, but that's just me, not Canada

imported_viper_2_4

they are overpriced and over hyped right now. I would consider them till the hype settles down and there is more information about thier american expansion plans...

Double_B

I would rather invest in getting a franchise than buying shares. Yes they are saturated here in Canada, and Timmies will never really take off in the States, but you KNOW you can always open a Timmies across the street from another Timmies and still make a fist full of money

imported_Joker

do it ..tell me how it goes ..

imported_viper_2_4

Most franchises I would think are a bad idea if you want to make big money, and infact would probably lose money in a lot of instances.

However, Tim Hortons I would think would be a good one. However I have no idea what kind of rules they put on thier francisees, so its hard to say.

Double_B

Haha sure, you got a million in change to lend me?

Younes Si

Just for their name it's gonna cost you over $300,000, but you'll start making money 6 months into it

imported_Team Rukus

what are you plannin on building a floating timmies on the lake???


it cost waaayyy less then you think

Fran. Fee: $50k Cap. Req’d: $178k the rest is all covered thru them which you will be paying monthly.

imported_starboy869

kicks self for not buying stocks