It seems that the rising AI tide continues to lift all boats within the US technology sector.
Dollarama is in search of bargains
It was a quiet week for Canadian earnings announcements, with Dollarama (DOL/TSX) being the one major company to report quarterly results. Some Canadian investors may not realize that this humble dollar store is definitely the thirty third largest company in Canadamaking it larger than Telus, Rogers or Fortis.
Dollarama earnings highlights
The Spar retailer announced the next this week:
- Dollarama (DOL/TSX): Earnings per share of $0.77 (versus the expected $0.75) and revenue matched the expert prediction of $1.41 billion.
Comparable store sales increased 5.6% and plans are in place so as to add 60 to 70 latest stores to the roster of 1,551 existing Canadian stores.
“As expected, we are seeing a continued normalization of comparable store sales, with growth primarily driven by continued higher than historical demand for basic consumer goods and other everyday necessities.”
– Neil Rossy, CEO of Dollarama
Despite the positive news, share prices fell when it was announced that subsidiary Dollarcity was expanding aggressively in Latin America. The $761.7 million investment increases Dollarama’s equity stake from 50.1% to 60.1%.
“We look forward to preparing our entry into Mexico in the near future, a large and dynamic market with untapped potential in the value retail space. We will be guided by the same careful and disciplined approach as our successful launches in Colombia in 2017 and Peru in 2021.”
– Neil Rossy, CEO of Dollarama
Long-term Dollarama shareholders are probably quite completely satisfied despite the decline, because the stock is up a whopping 26% year-to-date and 42% over the past 12 months.
Read: “Dollarama Earnings Report and Upcoming Growth”
Stock splits for Nvidia and Canadian Natural Resources
If you’ve got recently checked out the stock prices of Canada’s sixth-largest company, Canadian Natural Resources (CNQ/TSX), and the world’s third-largest company, Nvidia (NVDA/NASDAQ), you could have been alarmed by the sharp declines of their share prices. No must panic; this is just the results of stock splits. (Read: “What does Nvidia’s stock split mean for Canadian investors?”)
Earlier this week, CNQ conducted a 2-for-1 stock split and Nvidia conducted a 10-for-1 stock split. (Broadcom has also announced that this company may even perform a 1:10 stock split within the near future.)
