Q: I am thinking of adding DOL to my portfolio. It has a very small dividend so I would be holding it primarily for growth? What is your advice?
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Do you know of a reason why Dollarama is going down so much today?
Thanks so much.
Thanks so much.
Q: Dollarama has been under downward pressure in recent weeks. What is your outlook for this company? We consider ourselves to be investors, not speculators or day traders, but at the same time sell stocks when fortunes and/or sentiment toward a company have changed.
Q: KNow this has been a hot topic lately. But the reason for the fall might be a report just issued by Veritas calling DOL a sell.
Here is what they said:
"Canadian equities
Dollarama Inc. (DOL) - $81.70
Need-to-Know Veritas: Sell (PT $79)
Dollarama reported record GPM of 45.9% compared to historical average of 42%-43%, which led to a 35% increase in EBITDA to $154.8 million. Dollarama’s multiple price point strategy is the key driver of its strong SSSG, with average transaction size increasing at 3%-6% for the last several years while traffic increase was a mediocre 1% on average. Management indicated on the conference call that it will introduce new price points of $3.50 and $4.00 in the second half of F2017 and moved to a new metric: % of sales above $1.25 (instead of above $1.00 previously), which signals that the retailer is close to reaching a saturation point at the lowest price levels and needs higher prices to supplement SSSG. Given the company’s reliance on SSSG and growing expectations for ‘beat and raise’ quarters, a saturation point could create notable downside in the name should the company see slower than expected growth growing forward.
Sheldon
Here is what they said:
"Canadian equities
Dollarama Inc. (DOL) - $81.70
Need-to-Know Veritas: Sell (PT $79)
Dollarama reported record GPM of 45.9% compared to historical average of 42%-43%, which led to a 35% increase in EBITDA to $154.8 million. Dollarama’s multiple price point strategy is the key driver of its strong SSSG, with average transaction size increasing at 3%-6% for the last several years while traffic increase was a mediocre 1% on average. Management indicated on the conference call that it will introduce new price points of $3.50 and $4.00 in the second half of F2017 and moved to a new metric: % of sales above $1.25 (instead of above $1.00 previously), which signals that the retailer is close to reaching a saturation point at the lowest price levels and needs higher prices to supplement SSSG. Given the company’s reliance on SSSG and growing expectations for ‘beat and raise’ quarters, a saturation point could create notable downside in the name should the company see slower than expected growth growing forward.
Sheldon
Q: Given Dollarama’s recent good quarterly results and the (perhaps unwarranted) stock price reaction, would you consider this as a buying opportunity? Enough to recommend DOL over ATD.B for a new purchase today, or would you stick with ATD.B as your top pick in the consumer space?
Q: Hi, I started a position in DOL on the dip today. Do you think this was a good move? Best,
Cala
Cala
Q: Would you please comment on Dollarama's earnings release issued this morning? Thank you for your wonderful service. Peter
Q: Peter, can you provide any comments on my Consumer stock allocation. Each of the following stocks represent between 4 and 5% of my total portfolio: AYA; ATD.B; BYD.UN; CCL.B; DOL; and L. Please let me know if there are other Consumer stocks I should consider.
Thank you, Stephen
Thank you, Stephen
Q: Been a happy shareholder of Dollarama. If one looks at the chart, it's like the late-summer correction didn't even phase it.
There's always talk of increased competition from the dollar stores from the US (Family Dollar, Dollar Tree, Dollar General). Just how much of a threat is this to Dollarama's moat? And if US dollar stores are not a threat, what is their main risk?
There's always talk of increased competition from the dollar stores from the US (Family Dollar, Dollar Tree, Dollar General). Just how much of a threat is this to Dollarama's moat? And if US dollar stores are not a threat, what is their main risk?
Q: Would switching from Gildan to Dollorama be a smart thing to do. Dollorama seems to be going from strength to strength.
Q: Hi Team
I am considering taking a position in either DOL Dollarama or CTC Canadian Tire. My interest/focus is figuring out which stock would offer the best defensive position in this market's climate. Safety first these days ...
I am considering taking a position in either DOL Dollarama or CTC Canadian Tire. My interest/focus is figuring out which stock would offer the best defensive position in this market's climate. Safety first these days ...
Q: Hi gang...lots of nail biting going on right now..yikes! Anyway last week just after China's announcement, a speaker on BNN mentioned that Dollarama would be a good place to invest at this "junction" due to their connection/buying with/0f Asian products! Do you agree? thanks for your advice as always..cheers for now
Q: Can Dollarama DOL do enough to counter the effects of the weakening Canadian dollar and keep their expansion plans and everything else on the upswing? Or do you foresee serious problems?
Q: Hi there, can I get your opinion on "DOL". (Dollarama).
Q: what did you think of Dollarama's latest results?
Thankyou
Thankyou
Q: what would your rating be on this stock? Buy , hold or sell/ thanks
Q: RE "what's your sell disciplilne?" blog.
If DOL was in the BE portfolio or the growth and you had held it for over a year with a 100% gain, what would 5i do?
1) let it run on fundamentals, 2)take the profit and let the rest run, 3)substitute, 4) sell on valuation or stop gain, 5)trade on technicals and buy back based on the belief it will run more.
Thank you.
G
If DOL was in the BE portfolio or the growth and you had held it for over a year with a 100% gain, what would 5i do?
1) let it run on fundamentals, 2)take the profit and let the rest run, 3)substitute, 4) sell on valuation or stop gain, 5)trade on technicals and buy back based on the belief it will run more.
Thank you.
G
Q: Hello
What is the dividend yield on DOL? It pays an 8c dividend quarterly and current market price is about $60.
As per TMX money the yield is around 1.05% http://web.tmxmoney.com/quote.php?qm_symbol=DOL:TSX
I come up with a different number when I calculate it:
($0.08x4)/$60 = 0.53% dividend yield.
What am I missing?
Thank you
What is the dividend yield on DOL? It pays an 8c dividend quarterly and current market price is about $60.
As per TMX money the yield is around 1.05% http://web.tmxmoney.com/quote.php?qm_symbol=DOL:TSX
I come up with a different number when I calculate it:
($0.08x4)/$60 = 0.53% dividend yield.
What am I missing?
Thank you
Q: I'd like any updated thoughts on Dollarama (DOL). I currently hold it and have seen it rise significantly over the last few months. They had good earnings, but the rise seems to be greater than expected. Although I'm not complaining, is it overbought? Prior to becoming a 5i member, I probably would have sold already, so I'd like your thoughts on whether I should keep holding.
Thanks for everything, and I hope your team has a wonderful Christmas!
Thanks for everything, and I hope your team has a wonderful Christmas!
Q: Why don't you own DOL in your model portfolio?