Dollarama Inc. (DOL.TO)

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.

This is a retail stock with a lowest common denominator. The lower-cost items seem to be the least sensitive. Terrifically managed company. Has a little bit of headwind with the Cdn$ and minimum wage hikes, but she thinks they will sail through them.

(A Top Pick Jan 16/14. Up 9.79%.) Lots of room for growth geographically, but there is also room for same-store sales growth also. Very savvy retailer.

A great Canadian retailer that has been wildly successful. Management has done a fantastic job in exploiting this niche and building its business. This is reflected in the share price and he can’t buy anything like this that is trading over 20X earnings.

All time high today. This name is up there in terms of stretched valuations. Prefers US equities.

Loves this one. Still opening new stores. Have been cutting costs and introducing more sophisticated systems into their stores. Before buying, wait for their earnings report on April 9th. Have preannounced that weather has not done them any favours so there might be a weaker quarter. In the long run, they still have a lot of stores to open and they are doing the right things. Good management.