Canadian Short Opportunity

Published on
November 28th, 2018
Duration
20 minutes


Canadian Short Opportunity

Trade Ideas ·
Featuring Ben Axler

Published on: November 28th, 2018 • Duration: 20 minutes

Ben Axler, founder & CIO of Spruce Point Capital Management, joins Real Vision for the first time to highlight the bear case for a particular Canadian retailer. As a distinguished short-seller, Axler reviews management’s tactics, the company’s fundamentals and how to profit from the opportunity, in this interview with Brian Price. Filmed on November 27, 2018.

Comments

  • DR
    David R.
    2 December 2018 @ 17:26
    Socialist, liberal Canaduh is close to going down the drain it's been circling for 4 years.
  • P
    Paul .
    29 November 2018 @ 02:55
    Interviewee doesn't seem to be able to tell us why it is a short in a few short sentences or paragraphs.
  • PB
    Paul B.
    29 November 2018 @ 00:48
    Where do you see the Canadian dollar and Canadian banks going?
  • SL
    Steve L.
    28 November 2018 @ 21:35
    Great work Ben, you have a good process. Your Canadian short game is on point.
  • NI
    Nate I.
    28 November 2018 @ 20:40
    Would have been more timely in the mid-40's, but this company has been loading up on debt for buybacks quadrupling their interest expense over the past 5 years. They've conveyed all of the company equity to the beneficiaries of this scheme. This sort of thing shouldn't be legal. I might short DOL on a decent rally.
  • MM
    Mike M.
    28 November 2018 @ 18:45
    wrong transcript, downloaded pdf is for "A closer look at Venezuela". please correct.
    • NI
      Nate I.
      28 November 2018 @ 20:27
      Got the correct transcript at 11/28/18 20:26:40 UTC. Maybe Milton fixed it (or you might need a browser cookie/cache clear).
  • MD
    Matthew D.
    28 November 2018 @ 18:15
    Poor timing to be entering short now after its dropped 30% in just 2 months, wait to enter short on a bounce to at least $40 or you'll be under water for a while. As Raoul has said in his recent update, if you short at the lows, you'll get your face ripped off.
  • MN
    Maverick N.
    28 November 2018 @ 16:45
    Thoroughly well researched. Also marks to Brian for asking the right questions and offering the guest adequate time to present his findings. I liked how Ben was measured in calling the management "irresponsible". Money can be made without generating too much controversy I feel. We should certainly bring Ben back in the future.
  • tc
    t c.
    28 November 2018 @ 15:31
    I couldn't find DOL. Found it under DLMAF. I think it is OTC and some days no volume on the American exchange. Fidelity had no shares available to short. But bring him back regularly. Great presentation. Great interview Brian. I talked to some Canadian friends about Dollarama. They used to shop there but say there are lots of dollar stores to choose from these days . Reuters had a piece on Ben's call back on 10/31. https://www.fidelity.com/news/article/company-news/201810310700RTRSNEWSCOMBINED_L2N1XA1WL_1
  • tc
    t c.
    28 November 2018 @ 15:31
    I couldn't find DOL. Found it under DLMAF. I think it is OTC and some days no volume on the American exchange. Fidelity had no shares available to short. But bring him back regularly. Great presentation. Great interview Brian. I talked to some Canadian friends about Dollarama. They used to shop there but say there are lots of dollar stores to choose from these days . Reuters had a piece on Ben's call back on 10/31. https://www.fidelity.com/news/article/company-news/201810310700RTRSNEWSCOMBINED_L2N1XA1WL_1
  • tc
    t c.
    28 November 2018 @ 15:31
    I couldn't find DOL. Found it under DLMAF. I think it is OTC and some days no volume on the American exchange. Fidelity had no shares available to short. But bring him back regularly. Great presentation. Great interview Brian. I talked to some Canadian friends about Dollarama. They used to shop there but say there are lots of dollar stores to choose from these days . Reuters had a piece on Ben's call back on 10/31. https://www.fidelity.com/news/article/company-news/201810310700RTRSNEWSCOMBINED_L2N1XA1WL_1
  • tc
    t c.
    28 November 2018 @ 15:31
    I couldn't find DOL. Found it under DLMAF. I think it is OTC and some days no volume on the American exchange. Fidelity had no shares available to short. But bring him back regularly. Great presentation. Great interview Brian. I talked to some Canadian friends about Dollarama. They used to shop there but say there are lots of dollar stores to choose from these days . Reuters had a piece on Ben's call back on 10/31. https://www.fidelity.com/news/article/company-news/201810310700RTRSNEWSCOMBINED_L2N1XA1WL_1
  • JT
    Jimmy T.
    28 November 2018 @ 13:43
    Brian is fantastic. I always enjoy his interviews.
    • BP
      Brian P. | Real Vision
      28 November 2018 @ 21:17
      Cheers. Thanks, Jimmy!
  • PD
    Peter D.
    28 November 2018 @ 13:18
    Gutsy call. Ben forgot to mention that Larry Rossy, the company's founder and biggest asset, gave up his chairmanship in March. It is far from clear whether his son, the company's current president is in the same league. But the fact that the CFO holds no stock speaks for itself. What a scam. There should be some kind of law against that.
  • gg
    georgy g.
    28 November 2018 @ 12:11
    Thesis makes sense, but to say that dollar stores are easy biz to run - wow, just tells you ppl have no appreciation for retail...
  • JR
    J R.
    28 November 2018 @ 11:29
    Brian’s interviews are like good wine, they just get more fantastic with time. Summarizing the interviewee’s points along the way makes it very digestible for the audience. Thank you for bringing Ben, showing how to really drill deep into value research.
    • PD
      Peter D.
      28 November 2018 @ 13:14
      Agreed. That guy is a real pro. He prepares well, and moves it along quickly. Good work.
    • BP
      Brian P. | Real Vision
      28 November 2018 @ 21:17
      Y’all are too kind. Thanks so much for the kind words. Glad you enjoyed this!