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The story is good but you failed to mention anyting about valuation.
May 31 08:32 am
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All Comments by Paul Price »Costco: The Enigma [View article]
At today's price of $71.32 it trades at 24x FY 2008 EPS estimates of $2.99 [FY ends August] and 20.8x FY 2009 estimates of $3.40.
In the past 5 years COST's annual average P/E has ranged from 21x - 24x meaning the shares are now fairly priced for both this year and well into 2009.
Great company at a non-discounted share price. For cap gains I'd wait to buy much cheaper. This stock sells off periodically and it should only be bought after a significant dip.