Dollarama Inc. (DOL.TO)

Short? Shorting stocks is really tough. He always looks at 3 things before shorting. 1) General market trend, 2) sentiment towards the stock and 3) is there a catalyst you are betting on. Trading at 28X earnings. If you Short, put stop losses in. He would not Short this one.

Not cheap, which is why it has paused and declined by about 10%. Numbers reported were better than expected. Management indicated the outlook was not quite as rosy because of currency, and they were going to be a little more cautious on their outlook. Trading at 25X 2016 earnings estimates, which are expected to grow at 11%, so you have growth rate of 2.3X. ROE is huge at 65%, but the forecast for 2017 is 15% against a 22% PE.

He does not know the seasonality. The longer term trend was on the upside, but then it broke below a key support level in a head and shoulders pattern. This is not good news. There is support around $73. It is below its 20 day moving average. You don’t want to be in this stock. Take some money off the table.

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.