Dollarama Inc. (DOL.TO)

His firm has been scaling back exposure by about half, due to valuation. Very well run. Operations in Australia and Latin America are not really enough to move the needle. Now 25-30x PE, down from 40x forward PE a year ago. Nothing's really changed with the business. Still good growth prospects, if not super-high.

Huge, great run over a long period of time. Expanding all over the world -- advantages to taking the Canadian model and applying it to countries that are similar in terms of size and geography, but not the US.

It's still a growth story. In tough times, people trade down and spend at the dollar store. This is a trade. Long-term, what are you paying for growth? He wouldn't do that now, invest long term.

Neither. Loves the business of DOL, and he goes there all the time, but doesn't like the valuation. Approaching 40x PE, pretty lofty given its growth as a retail business. Operationally, DOL is more compelling than CTC.A, which is on a turnaround journey.

The valuation got high and same-store sales growth softened and Latin American growth slowed. Also, it will cost to revamp the Australian chain they bought. This one got away from him. DOL is a phenomenal success story.

Seeing slight upward technical trend from the March/April pullback. One of the strongest, long-term retail stories in Canada, especially as we might be heading into a tougher environment. Margins under some pressure.

Still room to expand store count meaningfully over time. Becoming more international via Latin American and Australia. Potential upside of ~15%, price target over $200. Yield is 0.27%.

Hasn't been adding due to valuation, and so it's one of his lowest-weight positions. Lots to like, but approaching saturation in Canada. Retail expanding internationally often doesn't work out. Latin American expansion is "so far, so good", but doesn't really move the needle (only 3-5% of profits).

Likes it long term. Expects a better buying opportunity.

Sideways and slightly downward lately. Still the dominant model in Canada. Higher energy and softness in Canadian economy are making consumers more value-focused. Expansion should help revenues and margins.

Main issue is valuation at 34x forward PE.

High multiple for growth, and growth didn't deliver what people were expecting. Canadian consumer feeling pinched. Market saturated in Canada, so they've gone international (and that makes him nervous).

Very high multiple of ~30x, yet growing ~13%. That troubles him. Sales miss, softer guidance, 4% EPS reduction, softer margins. Will probably do well in Mexico. Doesn't love it from risk/reward.

When times are tough, consumers gravitate to Walmart, Costco and Dollarama. DOL does a great job providing value to customers. He wishes he owned it. Problem is the high valuation, from high-30s to mid-30s, which remains too high.

Consumer’s hurting a bit at the lower end. Huge fan of this company. Classified as Consumer Discretionary, but it’s more a Consumer Staple. Performs well in both up and down business cycles. Choppy recently. Premium valuation, warranted. Core holding that helps stabilize your portfolio.

Whole witches' brew of things in the global economy that are impacting consumer spending. Higher interest rates, lack of rate cuts. Stock's still 33x PE. Higher valuation stocks tend to get hurt the most with interest rates rising.

On the other side of a phenomenal growth runway. Not opening as many stores, and those returns aren't as good. Mature company, growth hard to come by, so it's going international (less profitable). Don't buy the dip at this point.