Dollarama Inc. (DOL.TO)

It is a great business. Technically, it broke a significant level of resistance at $63. Look at the angle of ascent. It has become overbought but it is not unhealthy. The old level of resistance is not cracked and he doesn’t think it will be.

Terrific company with a strong brand name. Clean stores. Always busy. His problem is the valuation. You have to really believe that it is going to continue to grow at these levels to afford a 25X multiple. If you own, consider taking some profits.

Doesn’t own because it is more of a growth stock and he is a value investor. Has rewarded its investors very well. He sees continued earnings growth, which should lead to higher dividends. Probably fairly priced here.

The time to get in on this was on the IPO. Feels it is probably now fully priced.

It is getting there and is interesting. On his radar screen. Earnings are growing by a multiple of 20 is too rich. It sold off with US dollar stores last month and so he is taking a good hard look at it. Very well run company.

A real Canadian success story. The time to buy it was probably under $40-$45 a share. Company has to grow into its share price at this time because its growth rate is not going to be what it was in the past.

Great company and is in the right place at the right time. When it got up to the mid--$60 area, it was probably ahead of itself. He is a value investor and this is not a value play here but for other types of investors, it’s a good one to own.

You had a massive run up and then you start to see a distribution pattern. Over a 6 months window if you start to see this including a failed high, anyone who bought in that period may want to get out. You are looking at a return to about $50.

Growth stock and he is not a growth investor. A lot of expectations built into the price. More dollar stores are going to come to Canada from the US. 24x earnings is too rich.

There is a US player entering Canada in this space, meaning more competition, potentially, but it is all about getting locations. She thought it was expensive a year and a half ago. Their expansion to multi-dollar items has really helped. The hurricane would not benefit them by sales of batteries, etc. That is a onetime event and so analysts wouldn`t give it credit anyway. They are very good operators.

US competitors may have more presence in Canada in 3-5 years. Dollarama has good relationships with landlords, good inventory management but not much competition. Likes it but it is rather expensive here. Wishes he owned it.

Management has done a terrific job. Stock price has soared but so has earnings. There is still room for it to grow. Doesn’t think their market is saturated. He is not buying, but is watching it.

Missed this one because he wasn’t sure they could carry on consistently with the margins that they had done in the past. Has done an incredible job. Their format, the way they manage their inventory, the way they can squeeze more margin out is pretty impressive. Odds are going against them that they can continue in that direction. Has fallen below the 200 day moving average for most of August.

For a growth portfolio, he would look at this one. One of the few Canadian retailers that has continued to grow. Issues better and better earnings quarter after quarter. Trading at 20X forward earnings.