The Money Machine |
Finding awesome companies for low prices. If you think that is boring, check out my Mashups blog. |
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Chances are, you own several Gildan t-shirts. Gildan is a Montreal based clothing company that produces blank clothing for screenprinting as well as socks and underwear. They have a 60% (and growing) marketshare in Canada and the US and are competing on a global scale. Q1 2012 had a net loss of 46 million due to temporary economic factors, but they say they are still on track to hit a $1.30 eps for this year. At a lower price, Gildan would be a good pick.
Meaning: Gildan’s mission is to deliver better value through better design. They have won many awards for their corporate social responsibility with fair wages and good environmental policies.
Moat: Proven quality, and a growing marketshare. Gildan apparel is a common household item, though most consumers do not realize they own it.
Management: Glenn J Chamandy is a co-founder of Gildan. He spent his entire career working there, though there isn’t much information on his management style.
MOS: For a 15% return, there is currently a 14% Margin of Safety
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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.
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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
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making my way downtown
walking fast
faces pass and i’m homebound
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Whenever I see my friend talking to a hot guy
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Super rad antler handlebars by designer Taylor Simpson
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ifc:
Not sorry for buying this. Not sorry at all.
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Those would have been terrible last words.
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