The Monthly Gems by Allan Tong Dollarama Inc. DOL-T TOP PICK Jan 02, 2025

Would recommend selling shares at this time. Strong business model, but company is over valued. Store growth in Canada has slowed - moving towards Mexico, which is risky. Buy on cheaper valuation. 

It is an outstanding company with great management. It is on the expensive side at 30X earnings but if not buying, it is at least a good long term hold. There will not likely be a pullback.

Canadian stores, but worried about depreciating currency hard on the companies bottom line. Although company has done an amazing job opening stores - would wait to buy. Depends on currency risk. Would be a good long term hold of 5-10 years. 

Continues to like it. Paying a premium, but for specific reasons. Trades at 31x forward PE for 15% earnings growth. Recent decline is a good chance to add. In Canada, demand is growing for value-priced essentials.

So richly priced. Valuation is north of 30x PE because value proposition is so strong and consumers are pinched so hard.

Still adding for new clients. Key has been that it has very little competition, unlike US counterparts. You pay up for that position, at 35x forward PE, but you get 15% earnings growth going forward. 

Beneficiary of cumulative effects of inflation and uncertainty in Canadian economy. Recession-resilient business model. Outpaced the TSX since its IPO in 2009.

Still loves it. Paying 34x forward PE for 15% earnings growth. Dominant position. Cumulative effects of inflation driving more people to cost-conscious shopping. Recession resilient.

Fantastic growth. Outperformed US peers. With tariffs, opportunity to expand margins, which would make a big difference to revenues. A top 10 holding for him. In a slowdown, consumers will be looking for bargains.

Wouldn't buy now. Has benefited from the economic uncertainty, and so valuation has come up dramatically. North of 35x PE, so risk that could contract over the long term. Wonderful business, well positioned with price points to capture a larger portion of wallets in tough times. 

Last conference call referenced a small impact from sourcing from China, with the hit to margins yet to be seen.