Dollarama Inc. (DOL.TO)

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.

Trading at nearly historical highs and some momentum players would say it is a good time to Buy. However, he would look at it as possibly the “greater fool syndrome”, buying at this high price and selling to somebody else at a much higher price. Not his kind of company.

Has always found it too rich for him. Great company. Very well managed. Still able to grow in terms of Canadian locations. Trading at 20X this year’s earnings and 17X next year’s and is just a little bit too rich.

One of the few retailers that are exposed domestically to what he likes. Fantastic growth story. This is a quasi monopoly business. They compete mainly with the moms and pops that are not structured well, nor organized. Recent weak quarter is a buying opportunity. His target longer-term target is $85-$90. Yield of 0.76%.

Fast growing company, opening so many stores across the country. It is expensive and they are using up their cash. At some point the growth will stop. If you want to own it, buy on weakness, but he always finds it too expensive.

Stock came off after they missed estimates. Company may have a little bit of a growth spurt happening. They are trying to take some stores down into Latin America. He wonders if they have too many stores out there.

1^st time in 15 quarters that they actually missed estimates. Retail landscape in Canada is changing so rapidly. Still thinks this one has some good growth years ahead of it. Well managed. A formidable competitor in their business. On a valuation basis it looks quite expensive to him.