Dollarama Inc. (DOL.TO)

Pretty cautious on consumer names, since we're about mid-late cycle economically. Interest rates coming down might help the consumer. In the consumer space, he'd prefer a name like this. Downshift in spending going on now.

Believes he heard a comment that its forward guidance is uncertain, and that could be the reason it's pulled back. Earnings are one thing, but the street looks for forward guidance because that's what's going to happen next.

Longer-term chart is a good picture. On the 1-year chart you can see consolidation. So long as the neckline (a bit over $180) holds, you're fine to own it. He always buys on a positive test of support. Everyone wants to buy as cheaply as possible, but the problem is that it could get cheaper by far. Don't buy until it proves that level of support by bouncing up.

 It is Canada's largest dollar store chain and is opening another 70 to 80 stores. Also its international expansion is just getting started. Has been very consistent in earnings growth.  It has a price target form the street of about 2% upside. If buying, wait for a pullback.

Traffic and basket sizes remain robust, as sticky inflation over the years has caused consumers to trade down. Bit of softness in Canadian economy for Q2 and Q3. Paying a premium at over 40x forward, but decent 15% growth rate. In Canada, very little competition. Very good margin expansion over time, strong FCF. Aggressively growing store count in Canada and Latin America.

Last year, even when US dollar stores were struggling, DOL was chugging ahead. Management has been a great acquirer, integrator, and operator. Not cheap. Wouldn't bet against it. Hold and be happy, until something changes.

In his firm's Canadian dividend growth strategy portfolio. Not a great dividend, though it does grow. Focused more on inorganic growth and share buybacks. Almost AMZN-proof, scale gives them buying power. In Canada, topline is growing close to 10%, margins are improving. Trades at over 40x next year's earnings, so wise to trim.

Great numbers yesterday, as well as an all-time high. Still likes it. Canadians continue to downshift spending into more affordable channels. 60% of sales from private labels, which increases margins and differentiates themselves from competitors (not that there are many). International expansion into Dollar City in Latin America is good for long-term growth.

Premium valuation of 41x forward earnings. Sees 15% growth. To add, wait for better pricing opportunity.

It has been a phenomenal success story. It is expanding in Latin America and Australia and can increase efficiency there. It is getting expensive at 38 to 39% expected earnings.

Wouldn't buy now. Has benefited from the economic uncertainty, and so valuation has come up dramatically. North of 35x PE, so risk that could contract over the long term. Wonderful business, well positioned with price points to capture a larger portion of wallets in tough times. 

Last conference call referenced a small impact from sourcing from China, with the hit to margins yet to be seen.

Fantastic growth. Outperformed US peers. With tariffs, opportunity to expand margins, which would make a big difference to revenues. A top 10 holding for him. In a slowdown, consumers will be looking for bargains.

Still loves it. Paying 34x forward PE for 15% earnings growth. Dominant position. Cumulative effects of inflation driving more people to cost-conscious shopping. Recession resilient.

Still adding for new clients. Key has been that it has very little competition, unlike US counterparts. You pay up for that position, at 35x forward PE, but you get 15% earnings growth going forward. 

Beneficiary of cumulative effects of inflation and uncertainty in Canadian economy. Recession-resilient business model. Outpaced the TSX since its IPO in 2009.

So richly priced. Valuation is north of 30x PE because value proposition is so strong and consumers are pinched so hard.

Continues to like it. Paying a premium, but for specific reasons. Trades at 31x forward PE for 15% earnings growth. Recent decline is a good chance to add. In Canada, demand is growing for value-priced essentials.

Canadian stores, but worried about depreciating currency hard on the companies bottom line. Although company has done an amazing job opening stores - would wait to buy. Depends on currency risk. Would be a good long term hold of 5-10 years.