Is Dollarama on sale? Time to buy?

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The market seems to have reacted poorly to Dollarama’s plans for a new distribution centre in Calgary, despite a good quarter. I see it as a buying opportunity. How do you feel, Dan? Am I missing something from the quarterly report?

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Asked on December 5, 2024 10:57 am
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It was one of the weaker quarters in a while from Dollarama but still a pretty solid one overall. It's going to be very hard for this company to keep up with year over year growth because of the large shift in consumer spending here in Canada.

I personally would not pull the trigger right now because I do feel the company is getting a bit pricey and there could be future pressure from slowing growth. However, if someone is buying this one to hold it for the long-term, I think you'd be fine. Short-term volatility has little impact on long-term returns, and Dollarama is a premiere company here in Canada.

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Posted by Dan Kent
Answered on December 7, 2024 7:50 pm