With over 700 locations, Dollarama is Canada’s largest dollar store chain. Recently, Dollarama’s choice to offer price points up to $2 has helped it greatly increase same-store revenue. Dollarama is a company to buy as a hedge against a rebounding economy.
Meaning: Dollarama provides affordable goods to price-sensitive Canadians
Moat: Unlike most dollar/discount stores, Dollarama sources products directly from manufacturers, rather than local distributors, giving it a greater margin on its products.
Management: Larry Rossy has been named one of the Top 10 Canadian CEOs of the Decade by MSN Money.
Margin of Safety: a 20% MOS isn’t great, but the big 5 numbers are excellent.
Huge reserves of inventory, with growing demand and shrinking supply. Recent aquisition of Petro Can with great results, strong environmental policies and a Top 100 Employer. For a 15% return, there is a 9.03% Margin of Safety. Suncor is a good pick.
Meaning: Suncor’s vision is to be Canada’s premier integrated energy company focused on operational excellence and high growth, with the assets, people, and financial strength to compete globally
Moat: They have 7.2 bil barrels of proven oil reserves, the most in Canada
Management: Rick George, “Outstanding CEO of the Year” in 1999 and Canadian Business Leader Award in 2000. Retiring Spring 2012
MOS: There is currently a 9.5% Margin of Safety