Dollarama Inc. (DOL.TO)

Continues to like it. It is hard to find an investment in the retail world like this. A quasi monopoly. They are big and have lots of capital. Competitors aren’t good operators. Tones of room to grow in Canada. Announced aggressive buying back with extra cash. Generate a ton of free cash flow. Thinks they will increase dividends in a disciplined manor.

(Market Call Minute.) Great company. Always priced for perfection. Still growing. Had some negative same-store sales in December that they blamed on the weather. He would only Buy this on a dip.

He bought the IPO. This has pulled back because of Q4 and a comparison to Family Dollar in the US. DOL-T will continue to deliver a 10% square footage increase. Mid teens revenue growth. Organic growth through new stores and increasing prices on products. They are just starting to spin cash flow. Balance sheet should be clean by 2015. 0.75% dividend should be increased. It is a good entry point.

(Market Call Minute.) Feels there is still a lot of traction for them, but also there is a lot of competition. Would look to buy this one on a pull back.

It has been a growth story since it went public. There is probably still more to come as they open more stores. It is the kind of stock that will not do so well in a stronger economy. Would find it tough to buy here.

He prefers secular theme in web based retail. Then he prefers the high end and then the low end so he would be a shareholder here.

Amazing company. Everybody is in love with the stores and the stores have big pay back periods. He would not be paying those types of multiples. At some point it will attract competition, so it won’t be able to trade at 25X earnings forever. Current yield of 6.5 %.

It is hard to look at the near-term multiple and say you can’t buy the stock because it is expensive. It is always expensive. You need to look at the earnings power and the cash generation ability going forward. Continues to be in a very, very positive momentum. In the near-term, they are operating in a monopolistic business. Their competition are moms and pops that can’t compete with the scale that this company has. Wouldn’t be surprised to see it at $100 in the next 12 months.

This will continue and will open more branches. Their $100 million dollars of debt is not an issue. Have miles to go yet.

Has found its niche and is doing very well. As a conservative investor he has felt that it has been expensive for some time but the market thinks otherwise. Well managed. Probably still has a ways to go.

It needs to grow because the valuation is quite high. There isn’t much of a dividend. This is one of those that is priced for perfection. As long as they can grow like they are doing currently, the stock is okay. If it never misses, there will be a pretty sizable dip and that might be an entry point.

You tend to want to own this when the economy looks a little bit weaker because the shift is for the consumer to go the lower item priced goods. As the global economy, especially in the US, starts to recover he has shifted slightly away from dollar stores. You are paying about 1.3X peg ratio and 20X forward earnings so it is not exactly cheap at this time.

(Market Call Minute.) Great company but missed the last quarter and he would want to see a quarter before he stepped in.

Has been on his radar screen for quite some time. It never got to a valuation where he felt totally comfortable. Currently it is at about 22X this year’s earnings and 18X next years. He would like to get it a little cheaper because it is really priced to perfection. A little bit too rich in case they stumble.

This is in an uptrend with higher highs and higher lows. Doing quite well despite this being the period of seasonal weakness. Not the optimal time to play this. Technicals are saying it should still go higher. He would look to buy this more in October when retail in general does quite well.