Bear Stearns initiated coverage with an average rating. RBC, an underwriter, is much more "favourable". But that's because there isn't a single employee in Canada that doesn't drink Tim Horton's (if they drink it at all). Download Bear Stearns report on THI.

I feel it's just a matter of time and points before enough drops for Timmy that THI will become a stock favorite. So I figure I might as well start covering it today, and then after the market works through a bear phase, I'll be ready to give you some good info.

The stock recently IPO'd at C$27 (US$23.16), where it immediately jumped to a C$33.10 high. Too much caffeine for my blood, so I stayed away.

But this is a company that has the strongest brand in Canada " stronger than Coke even.

It's also a GICS sector 30 (consumer staples) play because everywhere they open, the management can't keep the same people out of their stores every day. Besides they are in the food business too because you can buy their excellent ground coffee there, as well as other "staples".

Of course the doughnuts are discretionary; but good.