malach hamovess

The Upside Case for Family Dollar Stores

closeout operations like FDS require a constant supply of overstock merchandise which can then be turned quickly.

Last year, when the retail economy suddenly collapsed, FDS and its counterparts in soft goods - Ross Stores, TJX, were able to capitalize on the mass of surplus goods and move a lot of merchandise at bargain prices.

As retailers and suppliers acclimate to the new, low-spend economy, they're not as likely to get stuck with the mass of seasonal goods which must then be unloaded to discounters and close-out kings.

How this will affect FDS in not certain, but it probably won't help.

Four Stocks for New Parents

buying what you know has nothing to do with the occasional shopper; it's a putzy theory when applied to megacaps like Disney which is priced as drek because it's about as driven by the economy as anything around.

buying toys doesn't make you an expert on Matel any more than smoking 3 packs a day would make you the expert on altria.

And as far as Costco - it may be a good company at the right price (I really don't know) but the standard that everyone who shops there should own its stock would have every new yorker owning verizon and every driver owning all the oil stocks since they all swap procuct