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Costco (COST +6.2%) seems to be firing on all cylinders despite the macroeconomic questions...

Costco (COST +6.2%) seems to be firing on all cylinders despite the macroeconomic questions circling around. Shareholders fresh from the buzz of a special $7 per share dividend also heard the company all but promise to keep dividend "activity" and share repurchases percolating right along. New stores are still on tap to complement the brisk same-store sales gains the retailer is seeing in the U.S. and globally. Amid a flurry of gushing analyst praise, Fitch kept its cool with a minor credit rating cut on COST to A+ from AA-.
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Comments (3)
  • Tommy_Finger
    , contributor
    Comments (320) | Send Message
     
    I love CrassCo. You have to pay to shop there. You have to buy huuuuge amounts and you even take out their garbage on the way out. Go CrassCo!
    28 Nov 2012, 03:44 PM Reply Like
  • SA Editor Samir Patel
    , contributor
    Comments (163) | Send Message
     
    I find the downgrade by Fitch particularly interesting, given that it isn't a lot of debt in context of Costco's balance sheet and FCF. Not really seeing the rationale.
    28 Nov 2012, 03:51 PM Reply Like
  • echinio9
    , contributor
    Comments (52) | Send Message
     
    I can't understand fully why they would issue debt to pay dividends. Or why anyone would for that matter. Its like taking a personal loan so you can put the cash under your pillow?

     

    Open to professIonal rebuke.
    29 Nov 2012, 02:51 AM Reply Like
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