Canadian Short Opportunity

Published on
28 November, 2018
Topic
Micro, Valuation, FX
Duration
20 minutes
Asset class
Equities

Canadian Short Opportunity

Featuring Ben Axler

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.

Published on
28 November, 2018
Topic
Micro, Valuation, FX
Duration
20 minutes
Asset class
Equities
Rating
10
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Comments

  • DR

    David R.

    2 12 2018 17:26

    0       2

    Socialist, liberal Canaduh is close to going down the drain it's been circling for 4 years.

  • P

    Paul .

    29 11 2018 02:55

    1       3

    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 11 2018 00:48

    0       0

    Where do you see the Canadian dollar and Canadian banks going?

  • SL

    Steve L.

    28 11 2018 21:35

    4       0

    Great work Ben, you have a good process. Your Canadian short game is on point.

  • NI

    Nate I.

    28 11 2018 20:40

    1       1

    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 11 2018 18:45

    0       0

    wrong transcript, downloaded pdf is for "A closer look at Venezuela". please correct.

  • MD

    Matthew D.

    28 11 2018 18:15

    4       0

    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 11 2018 16:45

    9       0

    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 11 2018 15:31

    1       0

    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 11 2018 15:31

    0       0

    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 11 2018 15:31

    0       0

    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 11 2018 15:31

    0       0

    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 11 2018 13:43

    4       1

    Brian is fantastic. I always enjoy his interviews.

  • PD

    Peter D.

    28 11 2018 13:18

    6       0

    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 11 2018 12:11

    2       2

    Thesis makes sense, but to say that dollar stores are easy biz to run - wow, just tells you ppl have no appreciation for retail...

  • AP

    A P.

    28 11 2018 11:29

    18       0

    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.