Dollarama Inc. (DOL.TO)

Wonderful business, adds a lot of value for customers. He struggles with the valuation, given its growth profile. To get a good longer-term return, you need earnings growth and multiple expansion.

WMT, as well as COST and DOL, are very defensive havens for investors. That's bid up the shares. PE ratios for the three are all north of 40x. With just a slight moderation in the PE, the overall return will still be flat. He'd be interested on a significant pullback. Be patient.

He loves shopping there and has owned shares a long time. The PE is full now. Likes it for the long term, but hasn't been adding to his position.

The first stock she ever bought, but doesn't own it for clients. Valuation has been so high there's risk of multiple compression if growth comes down. Didn't think it could continue growth trajectory as strongly as it has. Dividend yield not high, which makes sense when the company is redeploying $$ back into growing its business.

Expanding internationally. Trade-down economics at work in this weakening economy.

If it's 10% of your portfolio, trim. Don't add more at these valuations.

The high end is still spending on luxury goods, while the lower-middle consumer is starting to reduce spending. This name gives her exposure to more defensive consumer staples for her main portfolio positioning.

Owned for years, but exited his position. Doing better than he would have expected.

Look at the sector. He has virtually 0% weighting in the consumer. From homebuilders to retailers to restaurants to leisure travel to airlines, all are performing poorly. WMT has been the standout in the group.

Lends itself to both consumer staples and consumer discretionary. Growth has been fantastic. Same-store sales growth has been good. Strategy has worked, and now expanding internationally. High valuation; he's not one to buy these stocks where growth doesn't justify valuation (yet COST is north of 50x PE).

Should continue to grow, but you may not see the same performance of past years. Worries about impact of tariffs on goods; hasn't seen it yet in the numbers, but pay attention. It's a risk with this lower-margin business.

We continue to like DOL; it deserves its premium valuation. International expansion we think is the next growth driver. We would suggest $178.
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We continue to like DOL; it deserves its premium valuation. International expansion we think is the next growth driver. We would suggest $178.
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Will be affected if Trump doesn't do a deal with China, because that's where they get their stuff. That's as far as he's going to go on fundamentals; charts tell us everything we need to know. 

Chart shows the uptrend, and then the arc off trendline is a parabolic move. He'd bet that there's a fair distance between the 200-day MA and the recent peak -- when that's 20% or more, he calls a stock overbought. But longer-term trend is good.

He came out earlier this year. He's less bullish on the consumer, especially in Canada -- real estate market and consumer spending are weak, and people are using their homes as an ATM. Technically, pulled back to rising 200-day MA. Long-term uptrend. 

Price performance relative to the market has been weakening. You could certainly look at it here, but other areas might be more constructive.

One trigger was valuation, trading at mid-30x PE. Look at its sourcing -- most stuff comes from China. As Canadians are getting pinched, all the discount banners are benefiting massively -- almost every metric has been sensational, but so are the valuations.

He'd love to own it, but can't come to grips with paying that valuation. A great one to add on a large pullback.

His preferred Canadian retailer. Low cost. Cumulatively, inflation has taken its toll since the pandemic.

A compounder for years to come. Is surprised with the lack of competition in Canada. Is highly defensive. Helps that customer trading-down is happening. Are expanding a lot into Central America.

He always thinks it's a great place to buy anniversary presents ;)  It's done nothing wrong, and investors have fallen in love with it to some extent. He'd take some $$ off the table, and perhaps buy in again lower, though still likes it long term. Reaching saturation in Canada, so it's having to go abroad. International expansion can be good, but also problematic.

Worried a bit about growth in Canada slowing and not being offset enough by purchases further afield. Be mindful. Valuation of 40x PE is up there.

If true that economy's slowing, then people trade down and this name will do better than average. Over time, economy will grow. Has been a superb company. Extraordinarily well-managed. Doesn't own because always too expensive.