1 I came about writing this post while I saw $COST getting a beating on wednesday after reporting earnings ( which we discussed at www.dchsn6.com) , on thursday and then again on fri. I really wanted to see what is happening under the hood and when I pulled up the charts for rest of Discount variety stores like Dollar General $DG, Dollar Tree ($DLTR), BigLots ($BIG), Target ($TGT), Walmart ($WMT), things don’t look right. A lot of the mentioned names have been seeing some distribution in past week or two and $DLTR have just been destroyed. One question which comes to my mind is even if these discount variety stores are getting hit in this so called slow down in economy, if people are not even going to these discount stores anymore, do they still have cash left to buy at all. This is a cause of worry in the next few months.
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One Response to “AMERICAN DISCOUNT VARIETY STORES SHOWING CRACKS”
drummerboy
i have been following dltr for 5 years now. they seemed to have run into a wall since the split. trust me,dltr has more traffic than you realize. wmt has been hot for that sector like no body’s business. an the disconnect in all the discounters started right around the split of dltr,which had me scratching my head on occasion the last few months. something,(algos),or someone is trying to give the impression that economy is fine because no one seems to be shopping at these store’s, hence the recent falling of stock prices. this is not the case. i visit 3 dltr stores on a very regular basis.they are busy all day long, every day,7 days a week.