Dollarama Inc. (DOL.TO)

It is a great company and if you can buy it on a dip you will be well served. It is defensive and the business cycle is turning up. Things are looking better states side. You will be fine if you get it on a dip. Dollar Tree might want to buy them to get a large Canadian footprint but he does not buy things because he thinks their MAY be an acquisition. Prefers cyclical names.

She is always looking at it and has missed it. It is always too expensive to buy. They have a dominant position in Canada. They have the first mover advantage. On a pullback she would add to it (5-10%).

This is a true organic growth story, not an acquisition rollup story. They are really dominating the $1 space in Canada. A high-quality business that has a lot of room for further growth. Doesn’t see a lot of upside at this level. He would rather get it at 15%-20% lower from here.

They are very good at their organic growth. They are defensive and cyclical at the same time. People still shop there when things are improving. One of the issues is that they source a lot of their product from the US so the currency issue may affect them.

(A Top Pick Jan 16/14. Up 40.67%.) They have about 920 stores. Have the ability to grow in a number of ways including adding 60 to 80 new stores, same-store sales growth and increasing price points here and there. A little bit of yield as well.

This has been a fabulous story since it IPO’d a couple of years ago. The technical analysts’ favourite phrase is “the trend is your friend”, and the chart on this one shows a pretty impressive upward trend. There is no indication that this stock is showing signs of reaching a high. We are actually going into a period of seasonal strength for this, into the spring time.

He has a hard time telling you to “buy it” in here. It is going to be a beneficiary of a lower oil prices where people take their excess money and spend it in places like this. Money has moved from the resource sector and into the growth sector moving evaluations to all-time highs.

One of the huge winners since it went public. This is way too much value for him. It just had a stock split and is trading at EBV +7, which is really, really high for him. There is better value elsewhere.

He never pays retail prices, and this company’s valuations are retail prices. 25 times for this year’s earnings is insane. Either he’s wrong and the company grows into its multiples or he is right and the company is worth only 15X earnings. Doesn’t see any moat here. He sees a company that was 1^st to market and had taken advantage of an arbitrage opportunity. Doesn’t understand why the US guys haven’t come in and slaughtered this company.

Has been a tremendous growth story. Well-run. The company has done an excellent job of increasing the average selling price for their product in the store. There is still a lot of running room from a space perspective. Trades at a pretty rich valuation of 24X estimated earnings. He just doesn't want any exposure to Canadian retailing. Prefers US retailers instead.

A darling stock and has really done well over the last 3-4 years. A great play on discount retail. This is one of the best ways to play retail in Canada. As an investor, you do get handsomely rewarded. The 2 for 1 stock split, effective today, is good and should offer a bit more liquidity and attract a lot more people. Sees some decent growth, not a significant amount, but doesn't think you are going to get hurt too badly by owning this.

Will split tomorrow. It is getting tougher and tougher for people to make ends meet so this is a good stock going forward. 25 times earnings, but growing revenues a lot since they are opening more stores. At some point this will tail off, but we are not there yet. The split could be an opportunity to nibble at it. Don’t commit a full position. Add to it if it weakens.

This has been a standout performer. Has had an excellent business model and has been growing its footprint. Tracks excellently in terms of screens, fundamentally and ROE. PE multiple has always been high. Thinks the company will continue to grow after the stock split. Take some profits here, but Buy on pullbacks.

This has been a great company. It always seems to be a little bit expensive, so finally on the last selloff he pulled the trigger at about 16.5X earnings and felt comfortable with that as an entry point.

A great business. They dominate the dollar segment. 900 stores. They will add 80 a year and there is a potential for a lot of stores. Their inventory system is impressive. Very high levels of return (20-25% ROE). The valuation is up there for a reason. There is some good upside over a long period of time. Add to it if it pulls back. It is in his top 10.