Q: As far as the Discount Dollar Stores goes, I know and shop at Dollarama(Canadian)..., I have never experienced Five Below(US Based)...
- I used to like Dollarama as a Consumer, but its starting to get a bit pricey on items I regularly purchased... Not a fan of the price increases, but I still shop there for certain value...
Questions:
1. Which of the 2 companies would you suggest buying, based on valuation, stock price , growth , future and safety...
2. Buy Both or One
3. Crystal ball : Could you see any of the 2 to be takeover targets in future?
4. Any other suggestions in this space?
Thanks in advance
Regards,
M
- I used to like Dollarama as a Consumer, but its starting to get a bit pricey on items I regularly purchased... Not a fan of the price increases, but I still shop there for certain value...
Questions:
1. Which of the 2 companies would you suggest buying, based on valuation, stock price , growth , future and safety...
2. Buy Both or One
3. Crystal ball : Could you see any of the 2 to be takeover targets in future?
4. Any other suggestions in this space?
Thanks in advance
Regards,
M
5i Research Answer:
DOL has been a strong outperformer and we would continue to choose it. It just seems to have a handle on its customer/markets/products moreso than some of the competitors. WE would be fine with just DOL. We have thought DOL might be a target. As the domimant player in Canada, an international company could come in (if a takeover was approved by the FEDs) and instantly dominate a growing market, similar to how Best Buy bought Future Shop decades ago.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in FIVE.