Sleep Country Canada (ZZZ.TO)

They are going to continue to build out more stores across the country and get saturation numbers a lot lower, as far as the people per store they have. At the same time they keep increasing the number of dollars that people spend. People not only buy mattresses, but also buy other things such as fancy pillows, etc. Have had 11 quarters of fantastic growth. Dividend yield of 1.93%.

It can be the same as DOL-T, building out more stores geographically and getting more of the consumers’ dollar. It is not just mattresses. Accessories are higher margin. 11 quarters in a row of earnings growth.

(Market Call Minute.) A company with fantastic margins. Sees a lot of growth upside for this company.

They are opening stores everywhere. A nice, slow growth business. They are finding ways to expand their margins. It almost has a recession resistant tone to it. He wouldn’t expect the same type of returns that we have seen recently, but overall it is a solid name and well-managed. For a long-term patient holder, he thinks you can do well with it.

Looked at this, but felt they had put some lipstick on it, dressed it up and put the best foot forward when they IPO’d it. Had just come off their best quarters and were slapping a pretty aggressive valuation on it, so he didn’t participate. Valuation seems very pricey.

This has done very well since it has come back to the public market. They have a very good advertising campaign which they put away during the recession days, but have now rejuvenated themselves. They’ve opened more outlets. Also, into sheets, pillows, etc. which are higher margins. Dividend yield of 2.17%.

A mattress retailer. What Dollarama (DOL-T) has done over the last 10 years, he feels this company is going to do over the next 10 years. They are going to continue to expand geographically. Currently they serve about 1 store for 180,000 people, and he thinks that is going to be down to the 150,000 level, so they’ll have more stores out there. They are also expanding their business to sell not just mattresses, but a lot of accessories like fancy expensive pillows, giving them a much higher margin.

Biggest mattress retailer in Canada. The large department stores are tending to retreat from that kind of business, which opens up space for this company to expand. With their advertising, store sales have really grown. Last quarter had a spectacular execution. Dividend yield of 2.71%.

Great company and very, very well-managed. Trading at about 14 or 15 times earnings for next year. It is the dominant retail mattress company in Canada. There is some talk that Hudson Bay (HBC-T) may be getting out of the mattress business, which opens the door for even further growth. A good defensive business. Dividend yield of 3%.

Trading below its IPO price. Stock did very well in its incarnation as an income trust. Trading at 15X earnings. This is a dominant mattress company in Canada. Not a bad yield at just under 2%.