Dollarama Inc. (DOL.TO)

A record high today. He has been long for three and a half years. It hits all metrics. Valuation is still pretty reasonable. The trend has been pretty strong.

They had a phenomenal quarter. Same store sales were way better than analysts were expecting. The margins were much better and they are predicting better margins for next quarter. The constantly higher prices make margins much stronger. An incredibly well run company. She is a huge fan.

One of his larger positions. They have been consolidating for 6 months. Their financial reporting has been excellent and they come out with earnings tomorrow. This is an excellent Canadian growth story. They have another 300 stores to open in Canada. They have a two year payback. He is not sure how they grow once they have saturated the Canadian market. They buy back shares and have done an excellent job of increasing shareholder value. He is buying here. Try for below $100.

This has done very well in expanding their business. The thesis is that the Canadian market is under penetrated and under stored compared to the US. They have obviously come a long way in catching up. There is still a couple more years for them, in terms of catching up. They have some feelers in South America. In the meantime, they are going to continue to introduce some higher-priced items. It is a higher risk stock now compared to what it used to be.

Had owned this, but sold it a little while ago. A lot of consumer staples/consumer discretionary names are getting a little expensive. Trading at 26X forward earnings with a 15% growth rate. Their execution is phenomenal and there is not a lot of competition compared to the US, but it is expensive.

Even though retail has lagged a little, this company has a very specifically strong business model. If you want to have some exposure, he wouldn’t have a problem owning it.

The company is expanding, but it is hard for a discount company to raise prices aggressively. This has been a wonderful stock. He doesn’t see what the catalyst is going to be going forward for the next 12 months.

(A Top Pick July 4/16. Up 10.67%.) Has a long runway, but is limited in terms of the number of stores they can open in Canada. They have about 1,000 now, and management has suggested 1,400 will be the saturation point, although they are also increasing same store sales. Shares have been trading sideways for a couple of months, while operationally they have been knocking it out of the park. At some point he expects there is going to be some catch-up.

He likes this franchise a lot. Very unique in Canada. It has a major advantage over any other dollar store franchise. He took profits on his holdings. The stock has been really meandering sideways for some time. This is because it is trading at 27-28 times trailing and forward earnings. Not cheap. Management is doing a very, very good job. They are planning on opening 60-70 stores this year. The valuation still holds him back from wanted to own this.

This has been consistently earning a 40% return on invested capital for 8 years or longer. The valuation looks very reasonable. It has had a great run over the last couple of years, so you should be a little careful.

Technically there is nothing he can say to Sell it, with the exception of common sense. The run is too big unless it is going to split. He likes the sector. This one is very, very rich.

As a value investor, this is not one that would come up on his radar. As a growth stock, it has done very well, and thinks it will continue to do so. For the long-term, it will probably do you well.

(Market Call Minute.) This is not one for him. Too expensive on valuation. Insiders dumped a big share today.

This is kind of a supreme sector, where modest goods have gone from $1 to $5 now. This is where everybody shops, whether they are rich or poor. The company is brilliantly run. Expect this stock will continue to be strong.

He has not heard anything on a stock split. It is well managed and priced to perfection but they have always managed it to perfection. If there was ever a disappointment on the growth or earnings side, it would devastate the stock price. Make sure price increases are translating to the bottom line. They are showing real organic price, but he is not sure if they are worth the price.