Dollarama Inc. (DOL.TO)

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.

A very shareholder friendly company. Last year they repurchased 5% of their shares. Since 2012, they've repurchased about 24%. Meanwhile the stock went up about 400% over the same period. Feels they have a long-term organic revenue growth stream behind them. They are also looking at purchasing on online bulk sales, giving them a discount. Dividend yield of 0.3%. (Analysts' price target is $160.50.)

The chart looks very positive, as do most of these lower level type retailers. If he owned this, he would continue to hold it.

Investors have considered this as ridiculously expensive for 10 years now. Everyone talks about the valuation, and meanwhile they continue to grow and continue to execute well. They continue to increase their market share and continue to make investors money. He likes it quite a lot and has just added it to one of his portfolios. At some point they will hit the saturation limit in Canada, and are starting to make inroads into other countries. At some point, a larger entity will probably come in, in order to take over the Canadian dollar market, and guess who they are going to buy. A really good opportunity over the next 3-4 years. As a growth story, this is one of the best in Canada.

It is a very expensive stock. These things are priced for perfection. They missed some estimates by a few pennies recently and the stock dropped $30 and then rocketed right back up the same day. He thinks the multiple is quite expensive. You need to wait for an overcorrection.

Reported earnings that surpassed what the analysts were looking for. However, same store growth was about 4.5% and analysts were looking for 6%. A high-priced stock. If there are expectations not met, it can sell off pretty quick. However, the stock did come back.

Wished he had owned this. Had thought this was only for certain demographics, but the reality is that people of every demographic go to the stores. They are delivering incredible same-store sales growth in a lousy retail environment, because what they sell you wouldn’t buy through Amazon (AMZN-Q). Selling at a hefty valuation, and nothing ever stays cheap forever and nothing ever stays expensive forever.

An equity which has a tendency to do well when resource stocks in Canada are not. Has done well because they it is perhaps the 1 out of 10 Canadian companies which is actually a good company. It’s always on his Watch List. They are producing very attractive returns and in some areas, are best in class.

One that got away from him. He likes companies that are good and getting better, and this is one of them. The price chart seems to gap higher about every 3 months. He’s been very cautious on retail, but this has been a really good foil against the group. It tends to rally around the earnings period and then consolidates after. In the short run, it’s a little extended and a little stretched away from the 50-day moving average, so there is a little risk. A good company. As a long-term hold, this is good.

Your classic momentum stock. One of the few companies in Canada that has continuous earning beats. Has a good business that continues to grow. It is a really expensive stock. There is a world of investable opportunities out there, and a lot of great companies like this that he would like to own at some point, but you are paying many, many, many future years of profits now at these valuation levels.