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This is not good. DOL is down very sharply today around 7%, on a day when all stocks are generally up.

I stick with my earlier analysis on the stock... negative outlook. I didn't sell any shares as I only have 20 shares, inconsequential
 

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Yep, Spruce Point Capital, a firm that focuses on short-selling, writes a report that attacks a stock, which forces the price down, and Spruce Point Capital benefits. Anyone see a problem with that... hehe
I don't see any problem at all. It's price discovery, the firm does some analysis and tells you what they think.

I don't recall any of you complaining while analysts had over-optimistic research and talked the price up. Why is it only a problem if someone has pessimistic research and talks the price down?

Heck, they're doing you a favour! Direct your complaint to the shills who pumped DOL to the highs that you bought at :)
 

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I don't see any problem at all. It's price discovery, the firm does some analysis and tells you what they think.
Mmm, well, I usually rely on companies like Morningstar and its Quantitative ratings to evaluate companies, rather than a company that directly benefits when it issues a negative report. If you find no problems with companies like that - more power to you.

I bought DOL long ago, so it would have to get pretty bad to skirt my cost base, but I do dislike seeing the lemmings move and play right into the short sellers hands.

ltr
 

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It is a problem when it is done with unadulterated ulterior motives. The market needs a better model than a world of 'conflicted' analysts cheer leading and 'short sellers' most likely making absurdly false statements for excessive greed.
 

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They all have ulterior motives AltaRed. These professional analysts who continually pump stocks have serious conflicts of interest, in fact much more so than an independent firm that might be short selling a stock. The real blame should be directed at these analysts you see on TV, newspaper etc -- they are highly biased. And watching these people for years, I've seen that they constantly make ridiculously bullish statements.

In contrast, the independent firms that do short selling are being much more transparent and straightforward. They are saying: "we think this stock is worth much less, and we're shorting the stock". They don't have the same hidden conflicts of interest and hidden linkages (as underwriters etc) behind the scenes, as mainstream analysts do.

Frankly, people just don't like short sellers because everyone tends to be bullish biased in general, and don't like it when their investments decline. Short sellers often become scapegoats, and it's a lot easier to blame them, as opposed to the stream of ultra bullish analysts, shills and pumpers who talk up stocks for years and induce people to pay too much for them.
 

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longs would do well to take Spruce Point seriously...they nailed the Maxar short to perfection....what an massive return for them in just a few short weeks....
 

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longs would do well to take Spruce Point seriously...they nailed the Maxar short to perfection....what an massive return for them in just a few short weeks....
FWIW, I don't disagree as I think a 40% drop from peak may actually be on the low end. It is the way 'short sellers' engage that I find reprehensive.
 

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Possibly due to Dollarama’s stock falls as short seller Spruce Point takes aim
Yeah, worked for a day, and maybe they made their short, but Mr. Market called their bluff today.

We'll see what happens. I think their next few quarters will be important for sure.

Still, it's up 919% since 2010, so a few percent here or there isn't that big a deal, but shorters will continue to attack a well run business.

I see Morningstar quants assign a value of $42.55 to DOL today. They have no dog in the fight.

View attachment 19106

ltr
 

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I see Morningstar quants assign a value of $42.55 to DOL today. They have no dog in the fight.
ltr
No, but they project like any analyst, not necessarily seeing a slowdown of growth or margins. All momentum stories reach a natural maturity - just a matter of when. FWIW, I neither own, nor am interested in, DOL so I have no dog in the fight either.
 

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No, but they project like any analyst, not necessarily seeing a slowdown of growth or margins. All momentum stories reach a natural maturity - just a matter of when. FWIW, I neither own, nor am interested in, DOL so I have no dog in the fight either.
Huh, I always found Morningstar to be fairly accurate and brutally honest sometimes. A lot of people seem to rely on their supposedly unbiased evaluations, but I ain't no expert for sure, so maybe you're right and I shouldn't listen to them.

ltr
 

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Huh, I always found Morningstar to be fairly accurate and brutally honest sometimes. A lot of people seem to rely on their supposedly unbiased evaluations, but I ain't no expert for sure, so maybe you're right and I shouldn't listen to them.

ltr
They have no skin in the game so are not biased and so say how they see it. Indeed a plus compared to the cheer leaders, but that doesn't mean to say they do a lot of competitive research in their forward analyses. Without knowing their specific set of assumptions, we are still left to make judgement. They are one reference point.

Added: Lest it sound otherwise, I am not beating on them. I use Morningstar a lot for many things.
 

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I think their next few quarters will be important for sure.

Still, it's up 919% since 2010, so a few percent here or there isn't that big a deal, but shorters will continue to attack a well run business.

I see Morningstar quants assign a value of $42.55 to DOL today. They have no dog in the fight.

ltr
Well, DOL just reported their latest quarter.

The company's recent performance was reported as stable and revealed it earned $133.5 million in its latest quarter, up from $130.1 million a year ago. Sales for the quarter ended Oct. 28 totalled $864.3 million.
That profit amounted to 41 cents per diluted share, up from 38 cents per share in the same quarter last year.

Analysts expected a profit of 42 cents per share for the quarter, according to Thomson Reuters Eikon.

But, the market wasn't satisfied with that and the price dropped 12% today. Amazing.

The Morningstar quants give it 4 stars and assign a fair value of $43.01 to DOL today compared to market of approximately $33.30.

Still scratching my head.

ltr
 

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Differences of opinion on forward growth. Analysts are often slow to back peddle, i.e. too much rear view mirror looking. Today's price doesn't look out of place with slower growth - still with a reasonable P/E of about 20.
 

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Differences of opinion on forward growth. Analysts are often slow to back peddle, i.e. too much rear view mirror looking. Today's price doesn't look out of place with slower growth - still with a reasonable P/E of about 20.
Interesting that Morningstar has raised its outlook with a higher value now than last quarter, so I guess they aren't very reliable.

Hard to know where to get good information.

ltr
 

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They are all just analytical guesses. If they were really quite accurate, they wouldn't still be working as analysts.
 

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I stopped shopping from Dollarama long time ago. Their prices are higher than the other big box stores if you buy products on sale/clearance.
 

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we own, along with grocers as a shtf thing.
recessions and this kind of co, provide not debt leveraged will do quite well.

Stock has not shone for the past year or more, but we held on. Now the price has recently bumped, and I now have exposure to latin america dollar stores included.
 
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