Canadian stock alert

CANA

CLOSING UPDATE: Dollarama increases 0.7% - outperforming 84% of stocks 19 January 2018 18:23 EST

NEWS BITES - NORTH AMERICA

This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Dollarama, Canada's 3rd largest defensive retailer company by market capitalisation, has increased CAD1.14 (or 0.7%) today to trade at CAD160.0 and has outperformed 84% of the market in the past one year. The present value of CAD1,000 invested one year ago is CAD1,631 [vs CAD1,063 for the S&P/TSX 60 Index], including a capital gain of CAD626 and dividend reinvested of CAD5. Compared with the S&P/TSX 60 Index which rose 3.5 points (or 0.4%) in the day, this represented a relative price increase of 0.4%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.97 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 3.1% discount to 12-month high of CAD165.11 against the 65.5% premium to 12-month low of CAD96.68 suggests the stock continues to push for new highs.

+ In the last three months the stock has hit a new 52-week high sixteen times, pointing to a significant uptrend.

+ The price lifted 3.2% in the last week and 3.3% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings/Growth of 1.23 [7.5]

+ Return on Assets 23.9% [3.3%]

+ Return on Capital Employed 47.8% [8.0%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 19.5 times.

+ Total Liabilities/EBITDA of 2.5 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 14.1% in the last 3 years. This is better than the sector average of 1.6% and suggests a high margin of safety.

Note

Bearish Signals:

Tobin's Q Ratio is 9.5. Compared with the rest of the market the stock is overvalued and ranks in the bottom 7% of stocks by value of Q Ratio.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings of 36.4 [11.2]

Dividend yield of 0.3% [1.6%]

TODAY'S ALERTS

Afternoon Alert: Dollarama keeps rising: up 3.5% in 5 days

19 January 2018 14:45 EST

Dollarama Inc. (TSX:DOL) extended its gains on Friday, rising an additional CAD1.63 (or 1.0%) to trade at CAD160.49. Trading volume was 1.1 times average so far today.

Afternoon Alert: Dollarama in 5th consecutive rise, nears two-month high

19 January 2018 12:16 EST

Dollarama Inc. (TSX:DOL) extended its gains Friday, rising an additional CAD1.82 (or 1.1%) to trade at CAD160.68. The stock increased 1.05% on Wednesday and 0.81% on Thursday bringing its 5-day rise to 3.6%. It is now approaching its 49-day high of CAD161.03.

RECENT ALERTS

CLOSING UPDATE: Dollarama increases 0.8% - outperforming 85% of stocks

18 January 2018 18:25 EST

Dollarama, Canada's 3rd largest defensive retailer company by market capitalisation, has increased CAD1.28 (or 0.8%) today to trade at CAD158.86 and has outperformed 85% of the market in the past one year. The present value of CAD1,000 invested one year ago is CAD1,623 [vs CAD1,061 for the S&P/TSX 60 Index], including a capital gain of CAD618 and dividend reinvested of CAD5. Compared with the S&P/TSX 60 Index which fell 1.6 points (or 0.2%) in the day, this represented a relative price increase of 1.0%.

Afternoon Alert: Dollarama in 4th consecutive rise, nears two-month high

18 January 2018 12:16 EST

Dollarama Inc. (TSX:DOL) extended its gains Thursday, rising an additional CAD1.58 (or 1.0%) to trade at CAD159.16. The stock increased 0.32% on Tuesday and 1.05% on Wednesday bringing its 4-day rise to 2.7%. It is now approaching its 35-day high of CAD159.33.

Dollarama Inc. (T:DOL; TSE:DOL; N:DOL; CN:DOL)

ISIN: CA25675T1075

PermID: 5000063689

CIK: Dollarama Inc.

Source: www.BuySellSignals.com