The Smart Investor | A new admirer’s opinion of Dollarama

Every Sunday we put the spotlight on financial and stock market news that may be useful to the investor but may have stayed under the radar.

Posted at 8:00 am

Richard Dufour

Richard Dufour
The press

While Dollarama is due to present its fiscal year-start performance on Wednesday, the Stifel/GMP company launched official coverage of the Montreal retailer’s activities last week.

Analyst Martin Landry will retire on June 15e analyst to follow Dollarama and the 11e in this group to recommend the purchase.

In particular, he points to the company’s “impressive” course over the years and specifies that Dollarama has developed an attractive business model that allows it to generate stable gross margins despite inflationary pressures.

To that end, he believes companies can benefit from high inflation, which prompts people to adjust their consumption habits. Martin Landry also says he appreciates the growing exposure to Latin America thanks to its 50.1 percent stake in Dollarcity.

This expert estimates that Dollarcity is worth 5 billion today and that this retailer could eventually become a bigger company than Dollarama if it continues to expand its operations in Latin American countries.

“Dollarama should be a core component of most Canadian investment portfolios because of the stock’s low-risk profile and the company’s growth prospects,” he said.

A new board member Canadian citizen (CN) bought its first shares in the Montreal railroad company this week. David Freeman, who was elected director this spring, bought a package of 1,000 shares on Tuesday. This transaction is valued at nearly $150,000.

After assessing the impact of a recession or economic slowdown on securities in the transportation sector, CIBC pulled back its proposed purchase on Thursday Electric lion while changing his mind about CN to now propose buying the company’s shares. According to analyst Kevin Chiang, rail companies offer attractive “defensive attributes” should the economy plunge into recession, while offering upside potential if the macro backdrop remains favourable.

In Lion’s case, he sees better investment opportunities elsewhere and believes the rise in interest rates is limiting the upside of growth stocks like electric-vehicle maker Saint-Jérôme.

coveo gained a new follower this week. TD on Tuesday launched an official follow-up to the Quebec company, which specializes in artificial intelligence for online commerce. Analyst David Kwan finds the valuation attractive and recommends buying the stock. The 12-month target is $9.50. Coveo made its public debut in November at an initial price of $15. After climbing to $18, the stock fell back to $4 in May and is now worth $6. Six out of nine analysts now recommend buying.

The big boss ofUniSelect just acquired nearly $150,000 worth of additional stock in auto parts supplier Boucherville. Brian McManus bought 5,000 shares on May 27th.

The management of CAE will be in New York earlier this week to meet with investors and analysts for a two-day event. The Montreal-based flight simulator manufacturer will tour its business aviation training center in New Jersey on Monday, followed by a series of presentations and interactive demonstrations of its products and services on Tuesday. The event will be broadcast live on the internet.

The big boss of 5N more and two board members just bought nearly $900,000 worth of stock in the Montreal technology materials supplier. Director Jean-Marie Bourassa bought 175,000 shares on Monday, while CEO Gervais Jacques bought a block of 150,000 shares on May 27 and CEO Luc Bertrand bought 250,000 shares on May 26.

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