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Amazon.com, Inc. Message Board

seeoverthehill 1 post  |  Last Activity: May 27, 2016 8:26 PM Member since: May 13, 2009
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  • seeoverthehill by seeoverthehill May 27, 2016 8:26 PM Flag

    Not quite at the top, but a real nice profit anyway. I have been in and out of DG, DLTR, ROST, etc., many times over the years, and made a lot of money over the years. You have to buy them when they are a little down on their luck, and sell when they get a little toppy. I got back into DG just over three months ago, and had a real nice ride.

    Nice beat for last quarter, but same store sales growth and revenues were just a tad light. I read the CC transcript, and there were a few items which pushed up earnings despite sales being a just a tad light. First they got three cents in earnings from a tax break that won't be repeatable going forward. They had lower heating bills due to a mild winter, and they had lower transportation costs due to cheap diesel prices.

    The lower utility bills won't happen this quarter or next due to us moving out of heating and into air conditioning season. Diesel prices are up 50% from last quarter. Also the consumer had some tailwind last quarter due to low prices at the pump. Retail gasoline prices are also up 50%, and I believe oil, diesel and gasoline are in an upward trend that has a lot of room left to run. The oil production outages in Canada, Nigeria, Libya and declining production in the U.S., Brazil, Mexico, China, Colombia and other places will send oil prices into the 65 to 70 dollar a barrel range by the end of summer.

    Also mentioned in the CC was the new Department of Labor rules that are going to require time and half wages for salaried employees such as store managers and asst. managers which DG and other chain retailers have been able to avoid before this new rule goes into effect in December.

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