TSE:DOL

Dollarama Inc. (DOL.TO)

183.57
+3.52 (1.96%)
as of Sep 25, 2026, 8:00:01 pm Market Open.
678 watching
0
TOP PICK
Tripped up because of its pricing strategy, and the market beat it up for that. Dominant player in Canada. It's a growth and a defensive strategy, especially if there's a recession in the next 1-2 years. Adding stores every single year. You buy this for protection of market share. Yield is 0.4%. (Analysts’ price target is $41.25)
PAST TOP PICK
(A Top Pick Mar 11/19, Up 16%) He'd continue to hold it. Thinks it will get back to the recent highs.
COMMENT
They've had some cost issues. Very structured about how they run their business. There is a market for it and Amazon proof to certain degrees. They will continue to do well if they can continue increasing their average price per client. The issue is how much further they can grow. Maybe they need to move to the U.S. but that's a bigger competitve market which may be very difficult for them.
BUY ON WEAKNESS
It has been a pretty good performer and has not been affected much by the AMZN-Q push into retail. Buy it on dips. He is not in the retail sector except for AMZN-Q.
PAST TOP PICK
(A Top Pick Apr 12/18, Down 19%) He is still loyal to them and increased his position not long ago. The market is predicting better days ahead. They are still growing. They are aggressively buying back shares and opening new stores. It is very, very well run company. Debt is bumping up against levels that are almost concerning him. He thinks they are a great company.
TOP PICK
A safe, defensive investment. They have 1,100 stores, so they're by far the leader in Canada which is less competitive than the US. The share price is down a lot, but is trading at 19X earnings now instead of the previous 30x. They could buy Dollar City in Latin America (an option for them in 2020). Good runway of growth. (Analysts’ price target is $39.85)
TOP PICK
A strong cash flow generator. It has 24% ROA and earnings are growing at 13% in 2020. If it breaks above $40, there is room for it to move to $45 on a technical basis. Yield 0.46%
DON'T BUY
Dollar General vs. Dollarama The dollar stores are a good ivnestment when the economy stores. American dollar stores are priced at a discount to Canadian ones. December's pullback was a good opportunity to buy, and she would be on a future pullback. Dollarama's same-stores growth has slowed and has always traded at a premium to Canadian ones. Also, their valuation has contracted, but still higher than American ones. Also, the Canadian consumer has slowed spending overall.
PAST TOP PICK
(A Top Pick May 31/18, Down 23%) He sold it out at a loss during the free-fall from $50 towards $40. He was happy to have a stop-loss.
DON'T BUY
Loves the space. Faced challenges from CAD and Chinese imports. Experienced growing pains. Good entry point, but you have to think what the next leg of growth is. Might go sideways for a while. Doesn't see what drives him to buy it now.
BUY
A growth company, adding stores. They've built their brand and are well-managed. However, they had a few quarters where same-store sales disappointed, so the stock got hit. But there's still room for them to grow in Canada. A decent place to put your money if you're long-term and don't need a big dividend.
DON'T BUY
With a 20-year horizon It's on her watch list, but they had a few disappointing quarters. They've always traded at a premium to peers in America. DOL has grown their basket by gradually raising item prices. She wants to see a turnaround in traffic or how they plan their growth in the next few quarters.
TOP PICK
Its 200-day average was support then became resistance. Today it crossed that resistance line which is huge. Long-term resistance at $37. This will rise 10% easily. Volumes are rising. It's a good play here. (Analysts’ price target is $47.86)
PARTIAL BUY
Reports on March 28th. He does not own it but it has been one of the darlings on the TSX this decade. It has its challenges. Last year we saw same store sales drop. It has come off its highs but is starting to rebound. 22 times price to earnings. The decline is not meaningful enough to back up the truck. Take a third or a half position. Be ready to buy on weakness.
WAIT
Dollarama was a great growth story but disappointed in 2018. They did not grow at expectation levels, resulting in a multiple collapse. He is looking at it now.
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