Richard Shinnick

Costco: Overpriced for Its Growth Rate

The problem with your short is not the numbers it is the "intangibles." While all retailers will slow, Costco may very well slow less as, unlike WalMart, it has lots of geographic growth potential and there is not stigma among any social demographic for shopping at Costco. Millionaires and the working poor all love the Costco experience. Costco has an "it" factor that your model does not reognize.

Point is, if you are going to short retail, it would seem to me that you have much better options out there including a simple short on the RTH. The Costco short may work as a sinking tide sinks all boats but on a relative basis I am not sure it is the best choice or even one I would spend time on.

Costco Same Store Sales Up 7%, Beating Estimates

Long Costco, short RTH. Why not?

The Chicken's Guide to Picking Stocks in 2008

TJ: thanks for the advice, I will give Dr. Phil a call, he has helped me a lot in the past.

WakeUP: you might be the only one besides me who gets my point, and hopefully the dry humor I used to try to make it..it zipped right past some people.

TJ: I'm kidding about Dr. Phil, you know, joking, its a joke, ding, ding, ding. An yes, I know, this is the world of investing, lets not take ourselves too serious though.

The Chicken's Guide to Picking Stocks in 2008

No Duke, don't feel sorry for me, but you may laugh at me.