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Can this thing just keep going up? $91 is making me woozy. They say top end price point may have to increase from $3 to $4 due to the exchange rate increasing costs. Thinking of selling soon but I do I'd probably just dump the proceeds into more money losing oil stocks. :stupid: So I might resist.
 

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If you own,pick where you feel ok to buy more or sell

This company will soon be like tim hortons,so I would buy on dips,leverage if you can

Personally I love to leverage below prime
 

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Dollarama's current prospects

I, too, own DOL. Their most recent quarterly results were strong, same store sales increased, new stores added pretty much in line with their growth plan. For the next two-three years, I don't see them increasing dividends as they are piling money into opening new stores. Their biggest problem right seems to be weaker Canadian dollar - they have a hedging program in place which takes care of the next one or two quarters, after which they will need to pass the price increase onto the customer.

And so, I'm currently holding onto my shares and have recently added to my position. Simple business, great execution, room for some more expansion in terms of opening new stores (maybe another 200 more, which translates to three-four years worth of growth).

Looking forward to the December quarterly results. Solid stock with good growth prospect, in my mind.
 

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I, too, own DOL. Their most recent quarterly results were strong, same store sales increased, new stores added pretty much in line with their growth plan. For the next two-three years, I don't see them increasing dividends as they are piling money into opening new stores. Their biggest problem right seems to be weaker Canadian dollar - they have a hedging program in place which takes care of the next one or two quarters, after which they will need to pass the price increase onto the customer.

And so, I'm currently holding onto my shares and have recently added to my position. Simple business, great execution, room for some more expansion in terms of opening new stores (maybe another 200 more, which translates to three-four years worth of growth).

Looking forward to the December quarterly results. Solid stock with good growth prospect, in my mind.
i like that they can make money with small stores which makes real estate easier to find, i worry that they are going to oversaturate

in victoria we have stores just a mile away from each but perhaps this is part of their appeal, that they are close to their customers
 

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i buy the bull case

wal-mart needs bigger stores, dollarama can operate in smaller stores, if it runs itself well it could replace walmart as the low cost brand ... they have a great team ... individual mom and pop stores are not a serious threat since people like brands they can count on and experiences they are familiar with ... as costs go up prices will go up but it will still retain the "dollarama" name which will imply value

the bear case involves currency but i think that is manageable, wage growth in china is manageable as well, there are lots of low cost sources of goods out there

the key is the management team, if they continue to execute, i think it has a good future, if it pulls back, i might add more, as it matures i think they will start to grow their dividend

on balance the bull case wins for me ... they need to maintain those clean well run stores and it will do ok i think
 

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Today DOL fell nearly 7% on a very high volume day, 2.6 million shares vs the average of 500K shares daily (that's 5x the usual volume). This also happened while the stock fell below its 200 day moving average, a commonly watched price measure.

I'm long DOL but think this looks like a bearish move. It's giving me the feeling that DOL may have finally peaked in the $150 - $170 range.

I haven't looked at this very seriously, just observing today's move. I still hold DOL.
 

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Today DOL fell nearly 7% on a very high volume day, 2.6 million shares vs the average of 500K shares daily (that's 5x the usual volume). This also happened while the stock fell below its 200 day moving average, a commonly watched price measure.

I'm long DOL but think this looks like a bearish move. It's giving me the feeling that DOL may have finally peaked in the $150 - $170 range.

I haven't looked at this very seriously, just observing today's move. I still hold DOL.
Yeah, the market reacted to their latest report where they missed the estimates. They still made money, just not as much as the analysis hoped for. Sales rose 2.6 per cent in the first quarter while they were expecting a 4.7 per cent rise. It's such a huge growth story, everyone expects perfection. I'm long too, but likewise feel pressure when I don't see perfection every quarter. It's a well run company that I plan to hold onto. I'll be interested to see what happens after the 3:1 split this month. I'd rather see a $50 share than a $150 share just for the fact that the casual investor makes the assumption that it's too expensive a stock to buy.

ltr
 

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There is some speculation they will have to raise prices due to tariffs Trump will impose on imports.
Yeah, for sure, although as Dollarama says tariffs will affect all retailers in Canada. Some retailers are stuck if their products come from USA and nowhere else, but if you're selling a lot of Asian junk like Dollarama they have lots of other choices. Dollarama says, “So if I’m buying plastic-moulded items I have options all around the world for them. If I’m buying a Mars bar or a Hershey bar made in Pennsylvania, I don’t really have too many options.”.

I see a lot of what was lost on the market yesterday has been gained back today, but time will tell.

It's funny how my mind treats different stocks, and I suppose it shouldn't. When I own a growth stock like Dollarama where I have a low cost base and a huge capital appreciation on the books, there's a tendency to want to sell to crystallize those gains, compared to a stock like Enbridge that hovers around my book, but pays a large dividend.

Anyway, most of the useless analysts still show Dollarama as a buy.

Alta, do you own Dollarama?

ltr
 

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Closest I come to retail is ATD.b. I recognize CTC has been a winner but don't understand why. I feel like I am crawling with dirt when I walk into any of their stores. Course I guess it is their other brands that generate most of the profits.
 

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I’m not much interested in Dollarama or other retail equities either. Although I do think the Dollarama business model was/is brilliant.
I do have a REIT (PLZ) that captures rent from them, Loblaw and Shoppers Drugmart and other large retailers.
 

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Unfortunately, DOL is looking increasingly bearish. It's now fallen below its 200 day moving average for the first time since 2016, so the two year rally might have ended. Currently around $47, if I had to guess, I'd say it's probably heading lower this year (but who knows). I still hold some.
 

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Unfortunately, DOL is looking increasingly bearish. It's now fallen below its 200 day moving average for the first time since 2016, so the two year rally might have ended. Currently around $47, if I had to guess, I'd say it's probably heading lower this year (but who knows). I still hold some.
Who knows indeed.

I would say that it's an understatement that the next couple quarterly reports will be important.

ltr
 

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DOL has been very good to me, though i have been thinking of reducing ... i suspect that this is related to worries about china ...
 

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Simply put, I think the Dollar Store and 'near dollar' store plays are going to be increasingly attractive in the short and long term.

From the working poor to the middle class and beyond, a LOT of people are having a tough time (or have had a tough time) and if anyone walks into almost ANY dollar store it's really apparent that business has 'picked up'. I go into a few of them on a semi-regular basis to purchase specific imported snack items that I just can't seem to find anywhere else, along with some cheap craft stuff for my kids to mess around with and I honestly cannot believe how busy those places have become.

As a person who pays attention to detail, I used to notice that the bulk of the persons browsing the aisles likely could only afford 'dollar store items' and thus, the very reason why they were there and although those same people are still shopping there, the dynamic of the store has definitely changed. I notice people from all walks of life now and that's when I figured out that it wasn't 'just' that people were hurting in the pocketbook, but it was something else. It appears that the dollar stores have been doing their homework and from what I can tell, they have been bringing in items that are appealing and in many cases necessary to these 'new people' that are shopping at these locations and as a result, 'repeat business' is very good indeed. I can't help but wonder how many times I've caught myself saying, "man that seems expensive, I'll just pick one up next time I drive by the dollar store".

Cheers,
 
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