Dollarama Inc. (DOL.TO)

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.

This just continues to perform, obliterating targets. They are insulated because it is such a niche market. The stock is expensive, but trades at a premium for a reason. The targets are probably 10%-15% higher, so it is probably a stock you can continue to own.

An amazing Canadian success stories where many people didn’t realize that people from every income strata would be running into their stores. Not a cheap stock and he wouldn’t buy it here. Revenue growth has slowed, and there is a limit to how many Dollarama’s you can keep on opening. The company is using its free cash to buy back shares.

This is not cheap. On a P/B basis, it is extremely expensive. He calculates it is about 40% overpriced. Be careful. Use a stop loss.

It has not been around long enough to allow a seasonality study. It is in a long term upward trend, momentum is positive and it is outperforming the market. Retailing does well from the middle of September until the end of December.

One of the only retailers that is AMZN-Q proof. It is a tough one for a value investor to buy. You have to be careful if they ever did disappoint. You have to keep your eye on it. The valuations are way too high for his style of investing.

They’ve done a tremendous job of adding stores. They are relentless in testing things such as using credit cards, which they tested in a few stores, and found that the customer using a credit card spent more, which justified the credit card fee the store had to pay. Has an interesting partnership with a chain in Central America. Feels they are poorly understood by the street. ROE is over 100%. P/E ratio is probably in the mid to high 20s. Growing at 30%-40%. Probably fairly valued at these levels, but he likes them a lot.