Dollarama Inc. (DOL.TO)

He thinks this is massively overvalued, given it sells “junk” items. It has a 30 times multiple. He would rather buy McDonald’s with a 20 times earnings multiple.

He's be happy to be long this and sees a little bit of upside left here. It split today and expects it to see $70. The next quarter should be good, because the bad weather this quarter will lead to pent-up demand.

Only 27 Canadian companies match his screen. This one met the 30% ROE hurdle. He still sees a good runway for growth and likes the growth prospects in South America, where they have a store count of 101 locations now in a minority position with an option to become the majority holder. Yield 0.3%. (Analysts’ price target is $55.94)

(A Top Pick July 10/17 Up 29%) They are extremely well run and have a great runway for future growth. They do not do anything haphazard and they price competitively.

Had a good day today, but earnings lately a bit soft. Started taking a position when it was basing in April/May, and held a full position by early June. Market liked that they’re going to focus much more on Latin area expansion. Likely to become a majority shareholder in Dollar City. Increased both their eps guidance for 2019 and 2020, as well as their share buyback allowance. Drug capx marries well with the technical bottom you can see. (Analysts’ price target is $167.50.)

Every time investors think this stock has run its course, it pull another rabbit out of the hat, like adding 1,700 more stores in Canada. He likes it and sees good growth. A defensive play when we're late in the cycle.

This is a very well-run company. It is a strong defensive name--people will keep buying from this company when the economy goes down. However, it is trading at a very high valuation. Growth has justified that in the past. The company added credit cards a year ago and that increased the average sale considerably. It is also expanding online and owns a foreign company in a similar business. So there will be some growth but he is concerned that future growth will not keep up with the rise in the stock price, and that if there is a recession, the drop in value of this stock might be steeper than the growth in sales.

It is forming a nice base at $146 and would use this as his exit. It looks good fundamentally with a $10 profit target anticipated. Yield 0.3%. (Analysts’ price target is $165.69)

This is a growth story, not a defensive staple one (a struggling sector lately). But his concern about DOL it that it's trading at 28x earnings, so it's expensive. So, at the next misstep that happens to them, like an earnings miss, this stock will drop. It's well-managed and they haven't seriously missed an earnings in the past, though. It's come off its highs, getting way, way expensive and now only slightly expensive.

They said that they were going to do a 3-to-1 split, when is that happening? He doesn’t know. He thinks that might be good. Trading at 28 times forward earnings with 15% growth rate. He used to own it but sold it based on valuation. Some investors have concerns over competition coming over from the Asian market.

It has been up in 8 of the last 8 years. Defensive characteristics that you want to see during in the summer. Ideal entry point from a risk/reward perspective. Testing support.

This has been a darling for years and its stock price might have run its course. Its dividend is not that rich. After growth slows down, investors want to see the Board raise dividends. He always encourages people to take profits, and that applies here. Nothing goes up forever.

Great growth Canadian story. Seeing some more competition lately. Phenomenal company. Very well run. Still some growth runaway in Canada. It deserves the high multiple. (Analysts’ price target is $164.30)

He does own this and sees it as always expensive. He likes how hard they work for shareholder value. They survived the higher wage increase in Ontario. A core holding for sure.

The best retail stock in Canada. They don’t cease to amaze him. They will grow substantially this year. They are tremendous operators. He is excited by them having a 100 store franchise in Central America. They can buy a controlling interest in 2019. (Analysts’ target: $164.67).