Ten Threats to Dollar General (and Dollar Tree)
The conventional wisdom is that Dollar General is “Amazon Proof,” but conventional wisdom is often dead wrong about the Everything Store.
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Market Mad House
In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
deflation
Deflation Explains Why Kroger might be interested in Rite Aid
The danger here is that Kroger’s operating margins are very thin. The company reported a free cash flow of just $24 million; on revenues of $112.41 billion on July 31, 2016. That made for a profit margin of just 1.44%. To make matters worse Kroger has very little float it; had just $319 million in the bank on July 31, 2016, even though it reported generating $5.11 billion in cash from operations.
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Is Deflation Beginning?
It looks as if an economic downturn has begun. Only time will tell if this is actual deflation or simply a case of the jitters on the part of consumers. One thing is clear though; the rumors of an economic recovery seem to be greatly exaggerated.
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