Dollar Stores Have NOT Outperformed During the Recession
I’m not sure if all of you saw my Motley Fool post about dollar stores or not, but if you didn’t, the link is below. My message was/is that these companies have had tremendous stock run-ups; investors assumed a recession would mean the average consumer would become very value-conscious. As such, the likes of Wal-Mart (WMT), Dollar Tree (DLTR), 99 Cents Only (NDN) and the rest were all supposed to be the beneficiaries of the economic plague.
Funny thing though…that’s not really how it turned out.
Oh, the stocks are still flying high - that’s the problem. I have to wonder when the emperor is going to realize his new clothes are not really clothes at all. When the numbers/results are examined closely, these ultra-discounter’s stocks could be in some significant trouble.
Here’s a link to the dollar store article at the Motley Fool.
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