Dollarama: Investors Exaggerated Latest Earnings
Dollarama is the only 'dollar store' in Canada and has actually posted some pretty good numbers and growth over the last decade and is setting themselves up for continued growth in years to come - especially as the global economy remains uncertain.
While their operational costs increased based on opening more stores - overall investors exaggerated this "increase" and have sold the stock off.
At this point, the stock will likely close the gap at $40 and from there a lot is worthwhile. It is also possible a slightly positive double bottom around $35 could happen but it would likely take some sort of widespread market correction to get it that low.
A great stock for capital appreciation from the $40 level.
- zSplit
While their operational costs increased based on opening more stores - overall investors exaggerated this "increase" and have sold the stock off.
At this point, the stock will likely close the gap at $40 and from there a lot is worthwhile. It is also possible a slightly positive double bottom around $35 could happen but it would likely take some sort of widespread market correction to get it that low.
A great stock for capital appreciation from the $40 level.
- zSplit
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