There is an idea that the best time to invest in this sector is in the active growth phase of a retailer when it's expanding natioonally adding stores etc. But TFM and DG both fit this model and yet...underperform the market in the last months.
Then you have mature retailers which aren't adding any stores or expanding and they outperform....
Of course of you take the long view this is still up greatly since the IPO...
But the point is when will the synergies from the expansion start to be realised in the financials? Are we still waiting for that or is it baked in the share price already?
Yeah sometimes his calls are right but rarely. But my post wasn't really about him. It was really also asking if among the dollar stores this one has the most growth left as DLTR and FDO are fully built out in comparison.
SBUX also realised good gains well after they expanded.
I guess it takes a while to get to the bottom line.
Or is the problem here more of managing market expectations and execution?
The financials look fine...cash flow balance sheet etc.
Or is WMT just eating everyone's lunch including the dollar stores?
No DG locally but the DLTR store seems busy enough though I rarely go there.