Topic: How To Invest

Q: Hi, Pat. Sleep Country Canada stock took a price hit late last year. May I have your opinion on this company? Regards.

Article Excerpt

A: Sleep Country Canada Holdings Inc., $33.53, symbol ZZZ on Toronto (Shares outstanding: 37.7 million; Market cap: $1.3 billion; www.sleepcountry.ca), is the dominant specialty mattress retailer in Canada. The company operates 247 stores across the country, along with 16 distribution centres. Its product offerings include mattress sets as well as sleep-related accessories such as bed frames, pillows, mattress pads, sheets, duvets, headboards, footboards and platforms. Stephen Gunn, Christine Magee and Gord Lownds founded Sleep Country in Vancouver in 1994. In 2003, the company, then an income trust, began trading on the Toronto exchange at $10 a unit. Toronto-based firms Birch Hill Equity Partners Management Inc. and Westerkirk Capital Inc. took Sleep Country private after acquiring it in 2008. In 2015, they re-listed the company on the Toronto exchange through an initial public offering or IPO. The public bought a total of 17.65 million shares at $17 each. The stock has doubled since that time. Sleep Country’s revenue rose 14.8% from $456.2 million in 2015,…