RE:Why is DOL Better Than US Peers?
it doesn't have controlling interest in in it's Latin American operations. It's more like an investment on another company in shares only. but retail stores in other countries don't have much value for dollar stores for their equity. Another case of a company buying growth.. The problem is they won't sell if the shares if the company is profitable and don't need the money.
Obviously, Dollarama needsd to sell 500 million of 'unsecured' bonds in the next month. With GIC paying 5.9%, why would anyone buy these bonds for .5.533%? they would have to hedge it with what, it's really stupid to buy these bonds at 5.533% when many bonds and dividends are paying like 10% it's like leaving money on the table. The people buying these bonds at 3% in the 2010 when prime was 2% was Bank of Canada doing Quantitative Easing, and buying corporate bonds and equities in the open market.
Dollar Tree, and Dollar General like Target thinks the Canadian retail market is just too small to invest 1 billion in a new warehouse distribution centre. The market is only 10 billion/year for dollar store market. and dollarama and othe dollar stores have the market. Dollarama only growth is food but that is very low margin business max 25% gross margin in food business. Grocery stores like bread, can foods are very low margin business. Most business today are paying 10% on short term interests. so dollarama 'offering' 5.533% interest is bullshit. and ripoff to any bond investor and it's .unsecured debt;. no equity as collateral, nothing.