Sleep Country Canada Holdings

ZZZ-T

TSE:ZZZ

19.77
0.00 (0.00%)
Sleep Country Canada Inc. is a Canadian mattress retailer, with over 185 stores operating in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, PEI and Nova Scotia.
More at Wikipedia

Analysis and Opinions about ZZZ-T

Signal
Opinion
Expert
HOLD
HOLD
October 30, 2019
He has liked this stock for some time. They disappointed analysts last year and that is now behind them. You should start to see very good year over year comparisons. The multiple got traded down into 12 times earnings. As the comparisons improve he expects the multiple to improve taking the stock back to the mid-$30s share price. It may be by the end of next year. Yield 3.6%
He has liked this stock for some time. They disappointed analysts last year and that is now behind them. You should start to see very good year over year comparisons. The multiple got traded down into 12 times earnings. As the comparisons improve he expects the multiple to improve taking the stock back to the mid-$30s share price. It may be by the end of next year. Yield 3.6%
Don Lato
President, Padlock Investment Management
Price
$21.400
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
August 27, 2019
(A Top Pick Aug 23/18, Down 31%) A victim of sentiment and they reported a couple of soft earnings quarters. Still opening new stores. A huge contraction in the PE multiple from 18 down to 11.5 times. It could be bought here. Yield 3.8%
(A Top Pick Aug 23/18, Down 31%) A victim of sentiment and they reported a couple of soft earnings quarters. Still opening new stores. A huge contraction in the PE multiple from 18 down to 11.5 times. It could be bought here. Yield 3.8%
Don Lato
President, Padlock Investment Management
Price
$20.830
Owned
Yes
DON'T BUY
DON'T BUY
July 24, 2019
A dividend play? No. Their sales have struggled lately, and why do they have so many stores? They could rebound, and they have consolidated stores, but no reason to enter it.
A dividend play? No. Their sales have struggled lately, and why do they have so many stores? They could rebound, and they have consolidated stores, but no reason to enter it.
James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$18.180
Owned
No
DON'T BUY
DON'T BUY
June 3, 2019
He has looked at it many times over the years and has found it quite pricy. They reached a saturation point in the market. The stock is not reflecting high growth days going forward.
He has looked at it many times over the years and has found it quite pricy. They reached a saturation point in the market. The stock is not reflecting high growth days going forward.
Stephen Takacsy, B. Eng, MBA
Chief Investment Officer & Portfolio Mgr, Lester Asset Management
Price
$18.510
Owned
Unknown
BUY
BUY
May 29, 2019
They announced results about 3 weeks ago and same store sales were down shockingly, yet the stock price did not drop materially -- he sees that as good support. The multiples are now more reasonable -- trading under 12 times earnings. He would be a buyer now. Yield 4.2%.
They announced results about 3 weeks ago and same store sales were down shockingly, yet the stock price did not drop materially -- he sees that as good support. The multiples are now more reasonable -- trading under 12 times earnings. He would be a buyer now. Yield 4.2%.
Don Lato
President, Padlock Investment Management
Price
$18.760
Owned
Unknown
DON'T BUY
DON'T BUY
May 7, 2019
He never understood its story when it came out. It did very well initially but has come back to earth. He's never owned it nor would. He'd sell it, based on weak results (negative same-store sales growth).
He never understood its story when it came out. It did very well initially but has come back to earth. He's never owned it nor would. He'd sell it, based on weak results (negative same-store sales growth).
James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$18.210
Owned
No
SELL
SELL
February 20, 2019
Reporting soon. Last results were not good. Negative sentiment in Canada because of high debt levels. Sold her position. New products have higher margins, so that contributed to growth. But that's slowed down. Not loving it here. (Analysts’ price target is $30.19)
Reporting soon. Last results were not good. Negative sentiment in Canada because of high debt levels. Sold her position. New products have higher margins, so that contributed to growth. But that's slowed down. Not loving it here. (Analysts’ price target is $30.19)
Veronika Hirsch
Chief Investment Officer, Arrow Capital
Price
$22.520
Owned
No
BUY
BUY
January 30, 2019
He's recommended it before. There's been a malaise in the North American mattress space (i.e. Sears going under). They continue to do well online and will continue to grow their market share.
He's recommended it before. There's been a malaise in the North American mattress space (i.e. Sears going under). They continue to do well online and will continue to grow their market share.
Jim Huang
President, T.I.P. Wealth Management
Price
$20.930
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
December 21, 2018
(A Top Pick Nov 30/17, Down 37%) The 2018 earnings have kept pace, the valuation multiples have simply collapsed. They trade at 7.3 times EBITDA versus historical levels of 11 times. They still see new store openings, maybe not with the same growth rate. Housing has slowed, which may slow sales. Still a great bet and very cheap. If he had new money, he would be buying.
(A Top Pick Nov 30/17, Down 37%) The 2018 earnings have kept pace, the valuation multiples have simply collapsed. They trade at 7.3 times EBITDA versus historical levels of 11 times. They still see new store openings, maybe not with the same growth rate. Housing has slowed, which may slow sales. Still a great bet and very cheap. If he had new money, he would be buying.
Don Lato
President, Padlock Investment Management
Price
$19.330
Owned
Yes
WATCH
WATCH
December 3, 2018
This was a real high flying stock for so many years. They came out with disappointing same store sales growth just as Sears was closing down and they were expected to gain additional market share. They are buying an online mattress company. It may move the needle – time will tell.
This was a real high flying stock for so many years. They came out with disappointing same store sales growth just as Sears was closing down and they were expected to gain additional market share. They are buying an online mattress company. It may move the needle – time will tell.
Stephen Takacsy, B. Eng, MBA
Chief Investment Officer & Portfolio Mgr, Lester Asset Management
Price
$23.310
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
October 29, 2018

(Past Top Pick Nov. 30, 2017, Down 18%) It just hit 52-week lows, but its earnings from fallen from 18x to 13x. ZZZ had a few weak same-store sales in recent quarters, but not disastrous. The retail story isn't sexy compared to, say, cannabis where investors have poured in. They still dominate mattress sales in Canada. Their new ad campaign is pushing accessories which sees revenue growth. There are fears that the mattress-in- a-box companies will compete, but ZZZ also sells a box beds. It's a mystery to him why Sleep has been hammered. A few good quarters will turn it around. You can buy it now.

(Past Top Pick Nov. 30, 2017, Down 18%) It just hit 52-week lows, but its earnings from fallen from 18x to 13x. ZZZ had a few weak same-store sales in recent quarters, but not disastrous. The retail story isn't sexy compared to, say, cannabis where investors have poured in. They still dominate mattress sales in Canada. Their new ad campaign is pushing accessories which sees revenue growth. There are fears that the mattress-in- a-box companies will compete, but ZZZ also sells a box beds. It's a mystery to him why Sleep has been hammered. A few good quarters will turn it around. You can buy it now.

Don Lato
President, Padlock Investment Management
Price
$26.280
Owned
Yes
WATCH
WATCH
October 26, 2018

One of the better IPO's and had run up a lot, but it has been struggling lately. It's facing competition from new players offering cheap beds. They're good operators, and they dominate the Canadian market share, especially since Sears went out of business. The valuation is not expensive and has decreased. It could possibly get bought. He's monitoring the stock.

One of the better IPO's and had run up a lot, but it has been struggling lately. It's facing competition from new players offering cheap beds. They're good operators, and they dominate the Canadian market share, especially since Sears went out of business. The valuation is not expensive and has decreased. It could possibly get bought. He's monitoring the stock.

Peter Imhof
Vice President & Portfolio Manager, AGF Investments Inc
Price
$26.530
Owned
Yes
WATCH
WATCH
September 25, 2018

In general, he finds retail stocks hard to make money on, especially fashion-oriented ones. Sleep Country sells mattresses, not fashion goods, so it is more interesting to him. However, its market cap is too small for his investing approach. He has looked at it several times and has missed several good opportunities in the stock. The stock price has suffered over the past year after very strong growth in the years before that. There has been a proliferation of online providers of mattresses and they are competing effectively against companies like Sleep Country. Sleep Country has gone online as well, and he thinks they provide an excellent customer experience. However, he expects them to lose more share and he expects the stock price to go further down. At some point, the drop will be overdone and it will be a good company to buy. But not yet.

In general, he finds retail stocks hard to make money on, especially fashion-oriented ones. Sleep Country sells mattresses, not fashion goods, so it is more interesting to him. However, its market cap is too small for his investing approach. He has looked at it several times and has missed several good opportunities in the stock. The stock price has suffered over the past year after very strong growth in the years before that. There has been a proliferation of online providers of mattresses and they are competing effectively against companies like Sleep Country. Sleep Country has gone online as well, and he thinks they provide an excellent customer experience. However, he expects them to lose more share and he expects the stock price to go further down. At some point, the drop will be overdone and it will be a good company to buy. But not yet.

Norman Levine
Managing Director, Portfolio Management Corp
Price
$29.540
Owned
No
TOP PICK
TOP PICK
August 23, 2018

Combination of valuation, same store sales and growth. Ticks on all boxes. Trading at 15 times earnings. Leader in their field. Great entry point. Yield 2.4% (Analysts’ price target is $39.11)

Combination of valuation, same store sales and growth. Ticks on all boxes. Trading at 15 times earnings. Leader in their field. Great entry point. Yield 2.4% (Analysts’ price target is $39.11)

Don Lato
President, Padlock Investment Management
Price
$31.420
Owned
Yes
WEAK BUY
WEAK BUY
August 3, 2018

There are some US competitors who recently reported poor earnings. The mattress-in-a-box is a real threat to the industry. The recent earnings report showed same store sales growth of only 4.4%, from over 7% previously. He thinks there is an opportunity right now and would begin to step in as a buyer.

There are some US competitors who recently reported poor earnings. The mattress-in-a-box is a real threat to the industry. The recent earnings report showed same store sales growth of only 4.4%, from over 7% previously. He thinks there is an opportunity right now and would begin to step in as a buyer.

Peter Hodson
CEO & Head of Research, 5i Research Inc.
Price
$31.200
Owned
No
PAST TOP PICK
PAST TOP PICK
April 20, 2018

(A Top Pick November 30/17 Up 2%) Concerns about the Canadian economy are weighing on this. Shoppers were given bargains following the Sears closure. Mattress in a box competition is growing, which they plan to roll out their own product to combat it.

(A Top Pick November 30/17 Up 2%) Concerns about the Canadian economy are weighing on this. Shoppers were given bargains following the Sears closure. Mattress in a box competition is growing, which they plan to roll out their own product to combat it.

Don Lato
President, Padlock Investment Management
Price
$33.780
Owned
Yes
BUY
BUY
April 12, 2018

One of the stronger retailers in Canada. They meet his criteria for high return on equity. He thinks it is a good entry point. They are more reasonably priced this year than last because of higher earnings. They are adding stores and are an incredibly well run company. Possibly add to the position.

One of the stronger retailers in Canada. They meet his criteria for high return on equity. He thinks it is a good entry point. They are more reasonably priced this year than last because of higher earnings. They are adding stores and are an incredibly well run company. Possibly add to the position.

Jason Del Vicario
Portfolio Manager, HollisWealth
Price
$34.750
Owned
No
COMMENT
COMMENT
February 28, 2018

They've introduced sheets and pillowcases which enjoy wider margins than mattresses, so they've been doing well. However, they face competition from Casper. Sure, they will grab Sears' market share, but Sears is now liquidating their beds at a discount. Three to five years this will be a buy, but not this year. Rather, own it for the longer term, like three years.

They've introduced sheets and pillowcases which enjoy wider margins than mattresses, so they've been doing well. However, they face competition from Casper. Sure, they will grab Sears' market share, but Sears is now liquidating their beds at a discount. Three to five years this will be a buy, but not this year. Rather, own it for the longer term, like three years.

Veronika Hirsch
Chief Investment Officer, Arrow Capital
Price
$32.510
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
December 29, 2017

(A Top Pick Oct 20/17. Down 13%.) Sold this, because revenues have been coming off and the costs are rising. One of the short-term catalysts was Sears going bankrupt, and putting their mattresses on fire sale.

(A Top Pick Oct 20/17. Down 13%.) Sold this, because revenues have been coming off and the costs are rising. One of the short-term catalysts was Sears going bankrupt, and putting their mattresses on fire sale.

William Chin
Portfolio manager, Caldwell Investment Management
Price
$33.400
Owned
No
BUY
BUY
December 4, 2017

They are a Canadian retail success story and there aren’t many of them. They dominate the space they are in. Their net income has been growing lately. They are taking their business model to on-line retailing. He is going to take another hard look at them.

They are a Canadian retail success story and there aren’t many of them. They dominate the space they are in. Their net income has been growing lately. They are taking their business model to on-line retailing. He is going to take another hard look at them.

Jason Del Vicario
Portfolio Manager, HollisWealth
Price
$32.410
Owned
No
COMMENT
COMMENT
December 4, 2017

Chart shows this is coming back to its formal level of around $32 and has been sort of basing. It looks like the market really likes that level, and some of the indicators are starting to turn up. If not sure about the story, the easiest thing to do is to look at the bases the chart shows, and anything below around $32.25, there may be another leg down. Pretty attractive yield. If it breaks down, there is going to be a lot of buying between $32 and $26. Dividend yield of 2%+.

Chart shows this is coming back to its formal level of around $32 and has been sort of basing. It looks like the market really likes that level, and some of the indicators are starting to turn up. If not sure about the story, the easiest thing to do is to look at the bases the chart shows, and anything below around $32.25, there may be another leg down. Pretty attractive yield. If it breaks down, there is going to be a lot of buying between $32 and $26. Dividend yield of 2%+.

Hap (Robert) Sneddon FCSI
Chief Portfolio Manager & Founder, Castlemoore Inc.
Price
$32.410
Owned
Unknown
TOP PICK
TOP PICK
November 30, 2017

It is a good entry point at these levels with the demise of Sears, who were liquidating everything they could. It hurt ZZZ-T temporarily. They have a great runway to open 12 or more stores for the next two years. They are back down to 18 times earnings. It is a great entry point. (Analysts’ target: $41.00).

It is a good entry point at these levels with the demise of Sears, who were liquidating everything they could. It hurt ZZZ-T temporarily. They have a great runway to open 12 or more stores for the next two years. They are back down to 18 times earnings. It is a great entry point. (Analysts’ target: $41.00).

Don Lato
President, Padlock Investment Management
Price
$32.630
Owned
Yes
COMMENT
COMMENT
November 24, 2017

The stock had gotten a bit too expensive, and is still reasonably expensive at north of 20X earnings, but at the same time it is a very dependable business model, as most people would want to try a mattress before they bought it. A brick and mortar business that should live on. There is nothing not to like about this, other than the valuation.

The stock had gotten a bit too expensive, and is still reasonably expensive at north of 20X earnings, but at the same time it is a very dependable business model, as most people would want to try a mattress before they bought it. A brick and mortar business that should live on. There is nothing not to like about this, other than the valuation.

Daniel Lloyd
Portfolio Manager, Forge First Asset Management
Price
$32.840
Owned
No
PAST TOP PICK
PAST TOP PICK
November 23, 2017

(A Top Pick March 8/17. Up 4%.) Had a weak quarter with lower than expected sales and higher than expected costs in accessories, their high margin stuff. Sears bankruptcy should be good, but Sears is now liquidating their holdings which will create problems. Sold this at $33.79. It needs to be retesting the $37-$38 level before getting in.

(A Top Pick March 8/17. Up 4%.) Had a weak quarter with lower than expected sales and higher than expected costs in accessories, their high margin stuff. Sears bankruptcy should be good, but Sears is now liquidating their holdings which will create problems. Sold this at $33.79. It needs to be retesting the $37-$38 level before getting in.

William Chin
Portfolio manager, Caldwell Investment Management
Price
$32.770
Owned
No
DON'T BUY
DON'T BUY
November 13, 2017

It has been a position of his for some time. But margins are under pressure. They have been increasing their adverting budget. He thinks there will be pressure on margins for some time. He recently sold it. It was a darling for such a long time and it made a high and then made a lower high. There are better opportunities in the Canadian market.

It has been a position of his for some time. But margins are under pressure. They have been increasing their adverting budget. He thinks there will be pressure on margins for some time. He recently sold it. It was a darling for such a long time and it made a high and then made a lower high. There are better opportunities in the Canadian market.

Brendan Caldwell
President, Caldwell Securities
Price
$32.470
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
October 20, 2017

(A Top Pick Sept 16/16. Up 27%.) Just added to his holdings recently. They had very good execution. Salespeople are very helpful and knowledgeable, unlike the Bay or other big department stores. They’ve also branched out into accessories such as pillowcases, duvets and headboards. Improving about 15 to 20 stores a year. Strong balance sheet and good execution.

(A Top Pick Sept 16/16. Up 27%.) Just added to his holdings recently. They had very good execution. Salespeople are very helpful and knowledgeable, unlike the Bay or other big department stores. They’ve also branched out into accessories such as pillowcases, duvets and headboards. Improving about 15 to 20 stores a year. Strong balance sheet and good execution.

William Chin
Portfolio manager, Caldwell Investment Management
Price
$38.740
Owned
Yes
TOP PICK
TOP PICK
October 20, 2017

This is executing very well. Very strong balance sheet and a good cash position. Management is keeping an eye on the ball, renovating the stores. Staff are well-trained. (Analysts’ price target is $44.)

This is executing very well. Very strong balance sheet and a good cash position. Management is keeping an eye on the ball, renovating the stores. Staff are well-trained. (Analysts’ price target is $44.)

William Chin
Portfolio manager, Caldwell Investment Management
Price
$38.740
Owned
Yes
PAST TOP PICK
PAST TOP PICK
September 14, 2017

(A Top Pick Sept 21/16. 0% return.) This has gone up and has come back down. Growth continues to be really strong. Same-store sales growth was 7% and the multiple probably got a little ahead of itself. Also, there is more talk about the online “Bed in a Box”.

(A Top Pick Sept 21/16. 0% return.) This has gone up and has come back down. Growth continues to be really strong. Same-store sales growth was 7% and the multiple probably got a little ahead of itself. Also, there is more talk about the online “Bed in a Box”.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$32.500
Owned
No
COMMENT
COMMENT
September 13, 2017

Hasn’t been spending a lot of time working on this, but what is impeding its progress lately probably has more to do with encroaching competition in that industry. There have been more Internet mattress sellers coming on stream lately. Also, they are facing some cost escalations. Feels they are generally facing some fundamental shifts in retail. He would be very sensitive to the valuation you pay on this.

Hasn’t been spending a lot of time working on this, but what is impeding its progress lately probably has more to do with encroaching competition in that industry. There have been more Internet mattress sellers coming on stream lately. Also, they are facing some cost escalations. Feels they are generally facing some fundamental shifts in retail. He would be very sensitive to the valuation you pay on this.

Michael Sprung
President, Sprung Investment Management
Price
$32.090
Owned
No
HOLD
HOLD
August 29, 2017

The underperformance in the near term has mostly been related to the last quarter they reported, where same-store sales performance was not as good as the analysts had expected. Over the last number of years, this has been a very, very well-run company, and the stock has done extremely well. Expectations may have gotten too high. They’ve been gaining share from Sears Canada, which should continue.

The underperformance in the near term has mostly been related to the last quarter they reported, where same-store sales performance was not as good as the analysts had expected. Over the last number of years, this has been a very, very well-run company, and the stock has done extremely well. Expectations may have gotten too high. They’ve been gaining share from Sears Canada, which should continue.

Colin Stewart
CEO & Portfolio manager, JC Clark Investments Ltd.
Price
$33.510
Owned
No
HOLD
HOLD
August 17, 2017

(Market Call Minute) It is relatively expensive. Good management, growth and earnings, however.

(Market Call Minute) It is relatively expensive. Good management, growth and earnings, however.

Bruce Campbell (1)
President, Campbell and Lee InvMngmnt
Price
$34.070
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
July 26, 2017

(A Top Pick July 27/16. Up 46.11%.) This continues to execute very well. It has pulled back of late, which is probably from rotation out of the sector. They will be reporting next week, and he expects pretty strong sales again. They’ll probably be helped by all the trouble at Sears, one of their big competitors.

(A Top Pick July 27/16. Up 46.11%.) This continues to execute very well. It has pulled back of late, which is probably from rotation out of the sector. They will be reporting next week, and he expects pretty strong sales again. They’ll probably be helped by all the trouble at Sears, one of their big competitors.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$38.580
Owned
Yes
BUY
BUY
July 17, 2017

In a good competitive landscape it is focused on the mattress landscape. Its biggest competitors like Sears, are not having a good time of it. Good advertising and refurbishment of their stores is really helping them. It is one he has owned for several months and will likely to continue to own.

In a good competitive landscape it is focused on the mattress landscape. Its biggest competitors like Sears, are not having a good time of it. Good advertising and refurbishment of their stores is really helping them. It is one he has owned for several months and will likely to continue to own.

Brendan Caldwell
President, Caldwell Securities
Price
$40.010
Owned
Yes
BUY
BUY
July 13, 2017

It has a good run this year based on Sears mattresses. They also had good numbers. There is also a scarcity for consumer stocks in Canada. This is a stable name a decent long term hold. You want to go and test a mattress.

It has a good run this year based on Sears mattresses. They also had good numbers. There is also a scarcity for consumer stocks in Canada. This is a stable name a decent long term hold. You want to go and test a mattress.

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$40.690
Owned
Yes
PAST TOP PICK
PAST TOP PICK
July 6, 2017

(A Top Pick June 6/16. Up 77.73%.) They’ve done very well in executing their marketing campaign. Have been pulling back and not advertising as much. They’ve been taking market share from Department stores as well as adding higher margin accessories.

(A Top Pick June 6/16. Up 77.73%.) They’ve done very well in executing their marketing campaign. Have been pulling back and not advertising as much. They’ve been taking market share from Department stores as well as adding higher margin accessories.

Jim Huang
President, T.I.P. Wealth Management
Price
$41.850
Owned
Yes
PAST TOP PICK
PAST TOP PICK
June 22, 2017

(Top Pick Jun 30/16, Up 75%) They continued to execute very well and have grown business at the stores and got into accessories where they drive more business at a higher margin. Now they moved up because of recent announcements by Sears.

(Top Pick Jun 30/16, Up 75%) They continued to execute very well and have grown business at the stores and got into accessories where they drive more business at a higher margin. Now they moved up because of recent announcements by Sears.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$41.070
Owned
Yes
DON'T BUY
DON'T BUY
June 19, 2017

He used to be short it. It is an expensive shop. There are some short term benefits with Sears potentially getting out of the mattress business. There are regulatory and competitive changes on the landscape for this one.

He used to be short it. It is an expensive shop. There are some short term benefits with Sears potentially getting out of the mattress business. There are regulatory and competitive changes on the landscape for this one.

Veeral Khatri
Partner and Portfolio Manager, JC Clark
Price
$38.920
Owned
No
HOLD
HOLD
April 4, 2017

This company has executed and continue to do so. They’ve built out a great franchise. In the meantime, all their competitors are shrinking away from the Canadian market. He would stick with this.

This company has executed and continue to do so. They’ve built out a great franchise. In the meantime, all their competitors are shrinking away from the Canadian market. He would stick with this.

Gerard Ferguson
CEO & Portfolio Manager, Jemekk Capital Management
Price
$32.640
Owned
No
PAST TOP PICK
PAST TOP PICK
March 20, 2017

(A Top Pick March 1/16. Up 70%.) Not a cheap stock, but continues to be justified because some of the former competition is no longer in effect, which has left a lot of market share up for grabs.

(A Top Pick March 1/16. Up 70%.) Not a cheap stock, but continues to be justified because some of the former competition is no longer in effect, which has left a lot of market share up for grabs.

Jim Huang
President, T.I.P. Wealth Management
Price
$31.890
Owned
Yes
PAST TOP PICK
PAST TOP PICK
March 8, 2017

(A Top Pick Sept 16/16. Up 6.37%.) Expanding into the higher margin accessories line, scented pillows, duvet covers, etc. They are also renovating 15-20 of their stores every year. The competitive profile favours them.

(A Top Pick Sept 16/16. Up 6.37%.) Expanding into the higher margin accessories line, scented pillows, duvet covers, etc. They are also renovating 15-20 of their stores every year. The competitive profile favours them.

William Chin
Portfolio manager, Caldwell Investment Management
Price
$32.070
Owned
Yes
TOP PICK
TOP PICK
March 8, 2017

This is not just selling mattresses, but are also selling accessories, which are higher margin lines of products. It is doing very well, which is reflected in the charts. If the company is doing well, you will see investors appreciate that and adding value to the stock price, and we are seeing that. Dividend yield of 1.84%. (Analysts’ price target is $36.)

This is not just selling mattresses, but are also selling accessories, which are higher margin lines of products. It is doing very well, which is reflected in the charts. If the company is doing well, you will see investors appreciate that and adding value to the stock price, and we are seeing that. Dividend yield of 1.84%. (Analysts’ price target is $36.)

William Chin
Portfolio manager, Caldwell Investment Management
Price
$32.070
Owned
Yes
HOLD
HOLD
January 3, 2017

Has done a great job taking a huge market share away, from Sears in particular. It got to the $34-$35 range which was a little ahead of itself. Dips provide an opportunity. In Canada, there aren’t many choices in consumer that have the growth, but this is one of them. He has a Top Pick which is his choice. The company is well-managed and a good Hold here. Because of the multiple, you don’t get multiple expansion, you only get earnings growth. However, you could probably make 10%-20% profit on this. Dividend yield of just over 2%.

Has done a great job taking a huge market share away, from Sears in particular. It got to the $34-$35 range which was a little ahead of itself. Dips provide an opportunity. In Canada, there aren’t many choices in consumer that have the growth, but this is one of them. He has a Top Pick which is his choice. The company is well-managed and a good Hold here. Because of the multiple, you don’t get multiple expansion, you only get earnings growth. However, you could probably make 10%-20% profit on this. Dividend yield of just over 2%.

Bruce Campbell (1)
President, Campbell and Lee InvMngmnt
Price
$28.460
Owned
No
TOP PICK
TOP PICK
December 29, 2016

High single digit same store sales growth which is unknown by retailers in Canada. Growth in Accessories is close to 20% on a same store sales basis. (Analysts’ Target: $34.50).

High single digit same store sales growth which is unknown by retailers in Canada. Growth in Accessories is close to 20% on a same store sales basis. (Analysts’ Target: $34.50).

Steve Belisle
Senior Portfolio Manager & Managing Director, Manulife Asset Management
Price
$28.460
Owned
Yes
COMMENT
COMMENT
December 29, 2016

He likes this company. There is a real scarcity of consumer stocks in Canada, and this one fits that bill. He was cautious on the IPO, because it was a private equity one, and he is always leery about private equity. Last year they did 11% same-store sales, and this year they are on track to do about 9.5%. Even if they can do 5% same-store sales, that is very impressive. A good name, and not particularly expensive.

He likes this company. There is a real scarcity of consumer stocks in Canada, and this one fits that bill. He was cautious on the IPO, because it was a private equity one, and he is always leery about private equity. Last year they did 11% same-store sales, and this year they are on track to do about 9.5%. Even if they can do 5% same-store sales, that is very impressive. A good name, and not particularly expensive.

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$28.460
Owned
Yes
TOP PICK
TOP PICK
December 8, 2016

During the downturn in the financial crisis, they cut back on spending, and the sales growth slowed down. Now they have started spending again, sales growth has started to pick up. They are taking market share away from Sears, the Bay, etc. They are also adding ancillary products of pillowcases, etc., which actually have higher margins than the mattresses themselves. There is a lot of upside remaining in this. Dividend yield of 2.14%. (Analysts’ price target is $34.50.)

During the downturn in the financial crisis, they cut back on spending, and the sales growth slowed down. Now they have started spending again, sales growth has started to pick up. They are taking market share away from Sears, the Bay, etc. They are also adding ancillary products of pillowcases, etc., which actually have higher margins than the mattresses themselves. There is a lot of upside remaining in this. Dividend yield of 2.14%. (Analysts’ price target is $34.50.)

Jim Huang
President, T.I.P. Wealth Management
Price
$28.950
Owned
Yes
COMMENT
COMMENT
November 16, 2016

He no longer owns this based on his technical tools. Saw that it was starting to break down technically. Fundamentally he loves the company. This is one you can tuck away in your portfolio and go to sleep.

He no longer owns this based on his technical tools. Saw that it was starting to break down technically. Fundamentally he loves the company. This is one you can tuck away in your portfolio and go to sleep.