Dollarama Inc. (DOL.TO)

Costco trades at 50x PE vs. DOL's 35x, already high as its growth rate slows. DOL is looking overseas to Latin America to expand, which is interesting; there's lots of room to expand.

Excellent at the science of retail. Canadians pinched by inflation are increasingly changing their shopping patterns. Research shows you won't get things cheaper anywhere else in Canada. Very strong same-store sales, maintaining margins. Latin American joint venture has become a meaningful driver. Lots of blue sky ahead.

Brand-new high today. Still likes it. Not a lot of serious competition in this segment in Canada, so pricing power and ability to operate are that much stronger. 18% earnings growth, bit of a premium at 30x forward PE. A beneficiary as Canadians downshift spending.

Among his top 10 positions. Continues to execute strongly, well managed. Still lots of opportunities to grow. Has done well, but he wouldn't want to bet against it.

DOL is well-capitalized, has strong profit margins. For a long-term holding, we would prefer DOL today.
Unlock Premium - Try 5i Free 

Always trying to get it cheaper on a selloff day. No major competition to it in Canada. 1500 locations, wants to grow to 2000 by 2031. Very consistent revenue growth, as is profitability. Very resilient business model in any economic environment. Yield is 0.3%.

Uncertain economic environment means more consumers are being more cost-conscious. Foot traffic and sales volumes are strong. He projects 15% earnings growth rate going forward.

Great management and track record. Under-promise and over-deliver. Leader in a sector has an easier time hiring the best employees, as well as lower cost of capital. Hard to kill the leader, or be the laggard and make a turnaround.

Unique aspect is it's not just for people with lower incomes. Attracts all types of income earners who just want to save a few bucks. Management has been a large part of its success.

(Note the short timeframe.) RSI analysis lets you ride your winners. This one is #2 ranked on RSI in his large-cap Canadian universe. Held well through the correction of last week.

Hitting an all-time high. A remarkable story and have left their US peers behind. They've mastered the right product mix and have avoided the poor working conditions of the US dollar stores.

One of the best retail operators in the country and globally. Also one of the highest valuations in the sector, risk of impact if they stumble. Expensive for a reason, as you're getting a great management team.

Canada is not as competitive as the US, starting to see cracks with US peers, but not in Canada. Not a bad place to be. Canada's slowing down, and usually you want to be in the lower-priced retailer with more-value staples.

Canadian growth story that's outperformed. Steady, long-term accumulation and consistent growth, which is very strong technically. A bit of a correction, but still holding nicely above $120. The discount retailers have been doing well, and if we see a retrenchment in consumer spending as we've been seeing in recent months, these are stocks that could benefit. Yield is 0.30%.

A dilemma -- looks so expensive, so you're tempted to sell and take profits, you do, and you're wrong because it keeps going up. What to do? Keeps hitting it out of the ballpark. Not sure he'd add at these levels, but a pullback would be good. If you own it, hang on for the long run.

Same-store sales growth only 5.6%, disappointed some. EPS is way up. Buying back stock. Investing more in joint venture in Central and South America, tremendous value there because it's growing nicely.

Looking at it because its Central American business is really starting to take off. Exceptionally well managed. Stores in Canada are packed, since cost of living has jumped.

Really likes it, ranks among the highest in his Canadian screens. Good management and execution, store expansion, need for consumers to shift to better-value pricing. Very good growth rate, one of the faster EPS growers in the Canadian universe. Near overbought. Earnings growth estimated 22% over next few years. No real serious competitors in Canada.