NHL CBA deal almost done, what stocks will benefit?

Discussion in 'Trading' started by drukes1234, Jul 4, 2005.

  1. The NHL and NHLPA are very close to signing a new Collective Bargaining Agreement which will ensure there will in fact be a hockey season next year. What companies suffered the most from the NHL season being cancelled and should rebound by the continuation of play this season? Right now I am looking at Aramark, symbol RMK, any other suggestions?
  2. I don't know abou that, but it will be nice to have that robust northern sport on the telly again.
  3. The Forzani group who owns Sport Chek sells a lot of NHL apparel
  4. gekko


    Prime Restaurants income trust. Trade in Toronto, (TSX symbol EAT.UN) The company owns casual dining and premium pubs with a large concentration of their establishments in Ontario. They have been hit hard by the NHL lockout. They have had poor results and the stock is still trading near it's lows. Being an income trust their is no more than 15-20% on the upside but it pays a nice yield of 12.5%.

    They are mostly known for their East Side Mario banner.

    May hockey live again.
  5. Great! Thanks Gekko! I was wondering if it is possible to get in this trust through Interactive Brokers or if there is some sort of play, whether it be an American stock or a Canadian stock traded on the NYSE or Nasdaq that I can buy through my broker, I.B.

  6. Just be careful to see where the income trust sits in terms of right to the cash flow. Often with income trust on restaurants the holders of preferred shares will have first claim on cash flows. Only once they are payed does the income trust unit holders receive distribution.
    I don't know if this is the case with prime or not but it may explain the 12% yield
  7. Chagi


    Disclaimer: I own shares in the following company.

    One company that I expect to benefit greatly from an NHL season is CV Technologies, makers of ColdFX. Ticker is V.CVQ (it trades on the Canadian Venture Exchange). I'm not sure that anyone from the US will have heard of this company (yet), but they make a cold/flu remedy based on some sort of proprietary ginseng extract, it has actually passed clinical trials despite technically being a herbal remedy, I guess it boosts up your immune system to help fight off colds.

    I've tried it myself, not willing yet to vouch for the product, but I suspect that it helped me to fight off a nasty cold a few weeks back when I tried it out for the first time. I'm a uni student, so I'm sure that I'll have plenty of opportunity to test the product out this year...

    Anyways, the previous fiscal year was their first profitable year, and they are currently on track to expand greatly on the previous year. More importantly, they have Don Cherry lined up as a spokesperson (he's a big hit nationally up here in Canada, does a segment on Hockey Night in Canada on CBC). The company wasn't able to fully leverage him during 2004/2005 due to the lack of hockey, but I'm betting that things are going to be very different this year if we see an NHL season.

    Also worth mentioning that the company now has the excess cash in the bank to finance a major marketing campaign. Did I also mention that they basically have no debt and have very high gross margins? ;)

    Well, that's my "pump" for today, do your own due dilligence. Unlike the US markets, it's easy to download all sorts of free info about Canadian companies, at www.sedar.com
  8. sumfunny


    Molson Coors, all the canadian hockey venues, are licensed to molson I think at least alot of them are, not to mention then non-venue beer consumption, sports bars etc.
    - full disclosure I own shares
  9. I like the TAP play, especially if they continue sponsoring Hockey Night in Canada.
  10. I sure hope that the NHL and NHLPA can get a deal done. I love hockey and don't want to see it go away. Being from Minnesota and not having pro hockey for a while after the North Stars left, it was nice to get hockey back in Minnesota only to see the players strike. Now weather stocks will benefit from the NHL season, I'm not sure. Maybe someone like TAP (don't own shares) might benefit, but how much? But I'm looking forward to a new hockey season this year.
    #10     Jul 5, 2005