Dollarama Inc. (DOL.TO)

We have a defined uptrend that we have violated. The volume increased at a peak. It is now going down on high volume. He would be cautious. It is an overcrowded space. Investors were piling into it. The high US dollar is impacting them.

This has a super long uptrend. It got parabolic and it is inevitable that this will pull back. It is currently getting closer to its long-term trend line and seems to be finding support, but could go a little bit lower. Watch for support as there is a possible opportunity. Wait to see if it finds support and then it could be a good buy.

Stock vs. Stock. ATD.B vs. DOL-T. They have both done extremely well and are priced for perfection. DOL-T has warned that the high US dollar is impacting their cost of goods sold. These two stocks are very expensive and to move the needle they have grow a lot more. He would take the money from these and plow it into companies he is recommending today.

DOL-T vs. CTC.A-T. Both have been very good retailing stories for the last number of years. CTC.A-T has had a real estate portion to their story. They trade cheaper and are the slightly better story. He does not buy stocks at the PE of DOL-T.

The numbers were great in the headline news; they beat on cash flow and margins were up. Going a little bit deeper into guidance for next year, they are guiding for not as many store openings and for growth margin to be in the bottom end of the range. Also, with markets being jittery, the stock has been one of the real darlings and a good opportunity for people who are nervous to raise some cash at year-end. If the stock pulled back, this would be a real opportunity, especially in this slowing economic environment where people are more likely to shop at a Dollar Store.

Really well run retailer. He finds it expensive. As long as these retailers are executing and earnings estimates go up, then the stock will continue to go up.

0.4% dividend. It has been a growth play in Canada. We will have difficult economic times and this one is much more defensive.

Would you average up? He loves this company. It has a pretty high PE ratio, so if they should disappoint on their earnings as some point, you could see a pretty good correction. Have been delivering on the results and have done a wonderful job. He would hesitate to average up at this point.

It keeps going. The consensus is that there is 2-4 years of growth left. You can own it for a while longer.

Historically, this stock does very well when you get close to Christmas. Chart shows that the stock is in a distinct upward trend. The key is to watch the technicals.

A high momentum name. The problem with high momentum is that when it starts to weaken the company is very susceptible to any bad news. You need good news to keep driving higher, higher and higher. He would be careful with a high momentum name.

Had a super run, but looks sort of expensive at these levels. Has done quite well in terms of expanding its stores, but thinks it is going to find it’s time for a rest. The stock had a niche and it has filled it fairly effectively, and he is not sure there are a lot of other locations they can find that will give it the same kind of lift that they had with the 1^st run around.

They run a terrific business. They successfully took their customer up the value chain and he doesn’t see why they can’t take people further. It has not come off very much. As a long term hold he is in favour of it.

He likes this and has been buying it recently. Their most recent quarterly result was really impressive. This is a great, long term, steady Eddie stock. ROE is in the 30s.

He would call it a soft hold or a sell. The field is going to get a little more competitive. Their valuation comes partly from money moving out of energy and now it is moving back into it. He thinks the valuation is a little excessive. If you sit and wait long enough, it will grow into its valuation.