Dollar Store Dreams Won't Come True

• Report this Comment On December 16, 2008, at 4:24 PM, Bartlesby wrote:

  This is a smart thought process, but do you really believe that the past 12 months earnings can answer your question right now? If today's date was 12/16/2009, we would have a much better idea if these discounters actually benefited from the crisis. The trailing 12 months EPS of these companies only captures the beginning of the crisis. The next 6 months will be much more telling for these companies.

• Report this Comment On December 17, 2008, at 10:10 AM, dachuyn wrote:

  Well, I decided to take profit. This article makes me nervous. I am afraid more stores are selling 99c items (Target, Alberson, Walmart, etc). Competition will be tought, and I think DLTR has gained enough.

• Report this Comment On December 18, 2008, at 2:46 AM, KevinUW wrote:

  The US dollar is losing value, so as long as Dollar Tree can drive demands to offset higher commodities and import prices, it will be ok. Or Dollar Tree needs to figure out way to raise prices (e.g. selling things for more than $1).

  You should buy these names as well as retails with exposure to international markets like MCD and YUM would do better with weaker US $.

• Report this Comment On December 18, 2008, at 11:36 PM, simplea wrote:

  I shop dollar tree. It's unique among similars. Clean, well stocked, orderly, unusually helpful staff, extremely competitive on 1000s of necessary household items, partyware, canned and packaged staple foods, and it goes on. This is only discount chain I shop -- others don't compare for quality and even good design. The buyers are like Target buyers -- have educated good taste. Remarkable. I see more middle class shoppers each month discovering Dollar Tree. Think they are undiscovered to date.

• Report this Comment On December 20, 2008, at 12:42 PM, dachuyn wrote:

  I would wait until the stock drops down below $36 to buy again. Too many insider (sales) transactions at this price. There have been more insider sales (especially by the CEO) this month than any other month when DLTR hit 52-week high. Look at the insider transactions, it seems to me that DLTR should be valued around $37-$38 (when insiders started to sale, but not at the volume we see now this December).

  http://finance.yahoo.com/q/it?s=DLTR

• Report this Comment On December 30, 2008, at 2:59 AM, Classof1 wrote:

  Of course, when crude oil topped $147, the dime stores were whacked as transportation costs and fuel surcharges soared along with the costs of everything else they sell. Going forward, many of these adverse conditions have largely eased, or went away altogether. We should be able to see better margins, lower operating costs, and enhanced profitability. I wouldn't dare buy NDN going into earnings, and I hate it when insiders are unloading (DLTR), but FDO is looking good!

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