Dollarama Inc. (DOL.TO)

The stock has done very well. He sees valuations stretched.

He does not think the recent trade dispute between the US and China will impact this company. The company reported great earnings last week. It is down of 52 week highs marginally and the pullback has been short and shallow. There are a lot of good things going on with room to go to 1700 across Canada – they are at 1460 now. Gross margins continue to increase. They are buying back about 5% of their shares each year. They are a little expensive at these levels, but he would buy on weakness.

This is in an uptrend. It corrected when the market was correcting. It was a little over bought. It is definitely in an uptrend.

Loves Dollarama. Terrific management, but an expensive stock. Only caveat: they have to continue to beat numbers. When they stop, then exit, but she doesn't expect this to happen. They've introduced credit cards and increased price points up to five dollars, which customers so far have accepted. And they're building stores. Growth will continue.

Bad weather has impacted their results in the past. He doesn’t own it now but has owned it in the past. The business is good but the stock is too expensive now. Their growth is tempering off a little bit from 25% to more like 15%. They tend to hold the line at 35% to 37% in term of growth margin and they get a lot of operating leverage. 29 times earnings is too much. At $130 he would be more interested.

Wish he had bought it. From a portfolio management standpoint, if you hold, say, 15% of this in your portfolio or you're worried about new minimum wage hikes, then sell it down so you can sleep at night. He holds 5% levels of each of his stocks, and loves the 7.5% level. 25 stocks in 10 sectors is a manageable portfolio.

He does not own it as it has a high PE ratio and he would not view it as a value stock at these levels. It has done well, controlling the dollar store market. Products and margins have grown.

We were wrong to be skeptical about this stock years ago. They are doing gangbusters. Maybe not worth buying at current levels, though.

U.S. dollar stores were hit today due to food stamps laws changing under Trump, but won't be an issue in Canada. Likes them and would stay with this name. Went up $4 today. A great business. He would ride the wave.

Buy this now and don't wait for a pullback. It's firing on all cyclinders. It's one of the best stocks in Canada. ROIC has been 40%+ for many years, now 43%. Reasonably valued. It's at least a hold. If you don't any, but a little now then buy more on a pullback.

An excellent, well-managed company. He really likes the stock, but it is expensive, trading at 32X earnings. The 17% growth rate is decent, but it still puts it at a 1.8X PEG ratio. If he was trying to shed growth stocks for value names, this would be a name he would be a little wary of, particularly with minimum wage going higher in Ontario and Alberta, and possibly British Columbia.

An excellent business. It's the pioneer in the dollar store space in Canada. It’s still growing quite quickly, but looks like the earnings growth pace is moderating. In the early days it was growing 20%-25% a year, and people were complaining it was expensive. Has a joint venture in Latin America to do a trial concept, with the option to take control. What is going to be core to their continued growth is a continuing increased store count in Canada, as well as increasing price points in the store. It’s trading at 30X earnings and growth is decelerating. Buy it on a pullback.

Had definitely missed the boat on this one. At the level it is currently, it is priced for perfection. But at the same time, they are growing earnings significantly.

(Market Call Minute.) Continues to rank really well in his model. Now that they offer both credit cards in addition to cash and debit cards, their average ticket sales price has gone up. There is still great opportunity for the company to expand over the next 12-24 months.

He likes to see a little higher dividend yield, and this company has always had a low dividend yield, so you are trusting the stock price to really give you the rest of your total return. You can't argue with the performance of the company or the stock. The multiple is now sky high and the growth has to slow at some point. You will get another opportunity to buy this down the road.