Dollarama Inc. (DOL.TO)

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.

The stock split coming in November will not have much impact. The valuation on this looks pretty good. Trading at 1.1X PEG ratio and 22X earnings with a near 20% growth rate. Executing extremely well. A good name to own long-term.

The split makes it more affordable for retail investors. Research shows they tend to increase 2.2% after announcement, but before split and then 6 months afterwards there is no impact of the split.

In practice there is some merit to a smaller share price appealing to retail investors. The spit is a small part of the picture, however. 0.7% dividend. Great business model. The retail marketplace in Canada is slim pickings and some valuations are pretty extended. He does not see the dividend yield and growth he wants. US$ exchange rate is not helping them either.

Have executed really well and are obviously the leader in Canada. Right now the multiple is relatively high. Thinks they will be facing a few headwinds going forward. Reporting on Thursday so there will be some commentary regarding that. They source a lot of their product from the US, so the strong US$ is going to hurt them. Also, there is going to be an increase in the minimum wage in Ontario, which will hurt their costs slightly. Starting in 2015, the tariffs on imports from China will be going up.

There is some M&A activity in the states involving dollar stores. We haven’t quite made a higher high. Watch to see if we continue to make higher highs and higher lows. He has no strong view here.

Looked at this quite hard. Because it is a low dividend payer, it is not in his portfolios. They are in a growth mode and he sees good growth for the next 3-5 years. On his watchlist. This is a decent entry point.

This company has a great outlook. He has been watching and watching this one, but has not been able to pull the trigger on it. Always seemed a little bit expensive, but they keep surprising him and the earnings keep growing very, very nicely. He would like to be able to buy it at 15-16 times earnings.

This was a name that had seemed expensive, but the earnings just crept higher, and they have done extremely, extremely well. Earnings moved up faster than the price and the PEG ratio is at 1. It has moved down to near the 50 day moving average, and he would be comfortable owning it.

(A Top Pick June 26/13. Up 25.64%.) This story really hasn’t changed. Best in breed Canadian retailer. Has monopolistic pricing powers.

Likes the chart. Hasn’t dropped below 200 day M.A. 19 times PE level, but the growth rate has started to go up again. It is showing up in his screens now.