Will Rite Aid Survive without Walgreens?

Between February 2016 and February 2017, Rite Aid’s revenues increased by $2.11 billion. The revenues rose from $30.74 billion in 2016 to $32.85 billion in 2017. There’s a lot of cash flowing through Rite Aid that might make somebody a lot of money if he can figure out how to capture it.

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Will Big Lots Survive?

One thing is for certain, Big Lots was definitely overvalued at the $49.16 a share it was fetching on March 30, 2017. Nothing in its earnings report or holdings warrants that. Not even the 25¢ dividend which shareholders received on March 15, 2017. Stay away from Big Lots, it is overpriced and exposed to dangerous competitors that will soon destroy its business.

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Dollar Tree at the Limits of Growth

This means that like many discounters, Dollar Tree operates fairly close to the death spiral. That is too close for my tastes because it had just $870.4 million in cash and short-term investments at the end of the last quarter.

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Has Dollar Tree’s Growth Peaked?

Revenue growth has peaked at this retailer; making both its stock price and current business are unsustainable. Expect to see a major contraction in both share prices and footprints in the dollar store segment with DLTR leading the way. We’ve reached peak dollar store, so the collapse is about to begin.

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Is Dollar General’s Growth Sustainable?

Walmart’s online discounting is undercutting Dollar General’s prices and competing directly for rural customers. The recent acquisition of Jet.com gives Walmart even greater online discounting capabilities. Much of Dollar General’s success is in offering convenient local stores in small towns where there is no Walmart. Now Walmart can serve those customers without building a store. This should really worry DG investors because the National Retail Federation reported that more Americans shopped online than instore on Black Friday.

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Sears it’s Worse than We Thought

The revenue shrinkage at Sears is incredible, if it keeps up the retail icon might soon be smaller than dollar stores and rival department store operators.

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Target’s Summer of Pain, the Revenue Collapse Continues

It might be a coincidence but Jet’s revenue claims seem to match the drop in revenues at Target. In February 70% of Jet sales were from first time buyers. Particularly to worrisome to Target should be the fact that 81% of shoppers were unaware of Jet’s existence. That means it has a lot of room to grow and Walmart is now behind it.

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Dollar Tree’s big Gamble on Family Dollar Pays off or Does It?

My take is that both Dollar Tree and Dollar General are overpriced stocks. Dollar Tree is a slightly safer investment because it has more cash but neither is a good long-term investment. The market they are in is simply too competitive and unstable to support their business models.

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Is Dollar General’s Growth Sustainable?

Dollar General (NYSE: DG) just reported another quarter of phenomenal revenue growth. That raises the question: is the company making enough money to sustain; or justify, its ambitious expansion plans?

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