Mark Riddix

A Tale of Two Retailers

I list both my long term positons and short term trades. This market is so volatile that I have found that money can be made from short term trades. This has worked well for me while I wait for long term positions to turn.


On Jan 16 08:13 AM Paul Price wrote:

> Your own website is called "Buying Like Buffett" yet you show mostly
> trades of extremely short duration [e.g. Bought AAPL pre-market on
> Wed. - sold during Thursday's regular session].
>
> This is as "anti-Buffett&... as you can get.

Retail Bright Spots This Holiday Season

The past quarter the company had a 2 million dollar profit compared to a 4 million dollar loss previously. The company would have been profitable if not for the losses from Texas. The higher gross margins are encouraging because it demonstrates that management is becoming increasingly efficient. The company is getting a better handle on operating expenses. Distribution and transportation costs have remained flat.
I can't speak for the reasons that the company's strategy failed to work in Texas. Management has to be held accountable for that. I do take solace in the fact that 90 percent of their revenue is generated outside of Texas.


On Dec 03 10:07 AM brombonz wrote:

> I'm aware of the Texas situation. It has not been the only problem.
> I've followed the company since its IPO. It would be correct to say
> it is positioned properly to benefit from economic bad times. It
> is another thing to say management can turn that into profit, and
> increasing profit at that. I don't know that they have overcome their
> warehouse/distribution problems. I lived in L.A. for 35 years and
> am quite familiar with the stores. I last shopped there in the summer
> of 2006 while vacationing from my current home in Florida. I've been
> a shareowner at various times, as recently as earlier this year.
> Since I liked the stores (all the locations I've been familiar with,
> have been jammed with shoppers), the great appeal to me had been
> the exceedingly small store base compared with DLTR, FDO and the
> former DG, and the potential for national expansion. The failure
> in TX has lessened, if not eliminated, that appeal. It remains to
> be seen if management can transcend its previous shortcomings and
> turn steady, possibly growing, revenues into profit.

Retail Bright Spots This Holiday Season

By profit, I mean that I am expecting them to benefit from this recessionary environment. The 99 cents has seen an increase in comps, increasing revenue and has virtually no long term debt. The company's earnings were good except in Texas. The 99 cents store is closing all of its Texas locations because they are unprofitable. They incurred charges relating to the closing of the Texas locations(leasehold fees, impairment charges). Gross profit margins outside of Texas were 39.2% Comps rose almost 5% and retail sales rose 9%.


On Nov 30 02:33 PM brombonz wrote:

> "99 Cents Store (NDN) ....will continue to profit as consumers downsize."
>
>
> In the last three quarters, NDN has cumulative losses of $21.4 million
> before tax credits: $12.6 million in the Sept. quarter and $.7 million
> and $8.1 million in the two preceding quarters. After tax adjustments
> that works out to cumulative losses of $15.3 million (by quarter
> $9.4 million, $1.5 million and $4.4 million.(Data from Morningstar
> via Yahoo! Finance)
>
> In what sense do you employ the phrase "continue to profit?"