Dollarama Inc. (DOL.TO)

It's had a real drubbing this week. He's watching it. He thinks it's been oversold this week. It had a great growth run in Canada and is now looking at South America for growth. If it drops below $39.50, it could fall to a painful low-$30's.

Slashed their sales growth forecast today. He likes it, but high-valuation companies like this get hit if they slip in a report. They have a long runways in organic growth just through price increases over time. It could drift a bit lower, so wait a bit, but it's fine to have long term. A shareholder-friendly company that regularly buys back shares.

Down 17% today, their single-worst day. It's been a Canadian retail success story, but earnings were slightly disappointing today. Traditionally, it's had super, robust earnings growth with 5% increases in same-store sales. After a decline in Q1 2018, investors expected better results from Q2, released today, and didn't see it, so they sold it off. He'll take a closer look at this again--but not right now. Give it time to for the dust to settle, then maybe take a position.

Canada-US relations are more important than US-China relations. For specific goods, costs can go up at Dollarama, but for plastics, they can probably find another supplier. The stock was a darling, but now it’s been flat. Has gone below the 200-day moving average, recently a death cross. Concerns regarding NAFTA. Q1 was weak. See what tomorrow’s guidance is before jumping in.

It is a great retailer. The smaller price points add a lot of value there. It comes down to valuation. It is growing as a company but is it going to grow by leaps and bounds from here. Previously you had a transition from cash to credit cards. Every time they increase the price point they do well. They should shine in a down market, however. It's taking a breather.

It has been a good stock. However this year, now beginning to see lower highs and lower lows. Would not buy at this point. Would wait for a better trend. Not sure how much growth is left.

A portfolio holding for three years for him. They were affected by the terrible weather in spring. Not a cheap stock trading at 24 times next year earnings. Great management team. (Analysts’ price target is $56.28)

The 200-day moving average: Dollarama has recently moved below it after a long uptrend since 2016. The key level is getting above $50, but if it does not, he fears a further downdraft.

He likes this stock. The 3 for 1 stock split was a smart move and made the stock more attractive. They are opening 1700 more stores in Canada. He looks at it as both a long term buy and short term buy. It is also a defensive stock.

He likes it long-term. Recent basing right below $50 is good. But he's being patient with this and watching it. If it breaks below $45, he'd be worried, but this entire sector should perform well in August.

Dollarama vs Canadian Tire. He used to own Dollarama (DOL-T) and believes the growth will flatten out. He owns Canadian Tire (CTC.A-T) and the recent earnings surprise is not too worrisome to him. He thinks the CTC.A-T model to roll out directly to in-home sales will take time and does not believe the stock will go down much lower from here. Overall, he thinks it is a better valuation than DOL-T.

She does not own this because of the valuation. It is getting interesting now because the stock has pulled back. They import a lot of goods. Threat that margins may get squeezed because of the tariffs. This may be the overhang on the stock.

The stock is not going down because of trade tensions. It operates entirely in Canada. They are good at sourcing product to maintain their margins. The stock is declining because trend is rotating away from growth stocks to more valued stocks. The growth is decelerating. Would be very interested in this at a lower price. He is not sure if the current pull back is over yet.

This company has done very well and following the stock split their earnings have been steady. The only issue is the valuation and all the success is fully priced into it. He owns Dollar Tree (DLTR-N) in the US, because of the better valuation.

It has been great if you don't need a dividend. We need to give management a lot of credit in being able to execute the growth strategy. The share price took a bit of a breather and it is probably because the share price went up so much. They are having to invest in their distribution center and network. It is close to a 30 times PE.