I'm currious if someone can explain why the street affords such a hefty premium for FDO? DLTR has $3 in cash....well above FDO. DLTR has higher margins. DLTR has a much lower PE multiple (by aprox 40%) Only negative comp is 17% growth rate vs 18% for FDO. Thanks if anyone can give some clear reasoning
I'm looking to buy into one of the dollar stores once the market settles down. I've owned FDO previously and done well but it's too expensive for me now. DG's debt scares me. NDN is too expensive. That leaves me wondering why the street hated DLTR......I've shopped at DLTR & the stores are a carbon copy of the product offerings at FDO's I've visited & DLTR is brighter & cleaner then FDO. Anyone??? Thanks
The Dollar Tree Stores and Family Dollar aren't carbon copies. They are very different. Dollar Tree doesn't seem to be a bad investment though and if they drop down into the teens may really be something to look at. Family Dollar on the other hand is paying a piddly dividend, yet it is still a trend many investors are going after and may be part of the reason they have been somewhat popular. I really don't know a lot about what has been going on with the Family Dollar stores as of late.
"I f you think Dollar Tree and Family Dollar are identical you were either on something or not really in the stores. They are not identical at all."
They all sell the same cleaning products, garbage and food storage supplies, limited food items, limited auto supplies, electrical supplies, limited drug and beauty supplies, etc etc etc .......The majority of merchandise in all the dollar store chains are the same in my opinion , although some stores offer clothes, and some offer more craft items and the store isle layouts are different.