The Slow Decline and Fall of Target

Strangely enough, Target (NYSE: TGT) has something in common with the Roman Empire; it is slowly but surely declining. Target’s

Read more

Are Home Improvement Stores a Bubble?

Is improvement really a growth industry or is it a bubble? After all The Home Depot had 2,274 stores in February 2016, and Lowes and its subsidiaries were operating 2,365 locations in 2015. That adds up to 4,639 stores which raises the obvious question: how many stores can the market support.

Read more

Costco Defies the Odds

Costco has one thing in common with Amazon, it is a very cash rich company. On February 28, 2017 it reported $4.976 billion in cash from operations, $2.384 billion in in net income and $5.965 billion in cash and short-term investments. This was in spite of a free cash flow of -$23 million and a profit margin of 1.73%.

Read more

Can Target Survive the Retail Apocalypse?

My prediction is that Target will continue to make money but the revenue losses will keep growing. At some point; probably in 2019, Target will have to start closing stores and possibly reducing its national footprint much like JC Penny’s and Macy’s are to survive.

Read more

The Retail Jobs Apocalypse Might Doom Trump’s Jobs Agenda

Sooner or later, Trump will have to face the retail-jobs apocalypse, particularly if he wants to get reelected. Although dealing with it might doom his administration, because it might expose just how ineffective his policies might be and how hollow his promises seem.

Read more

Stocks to Dump in 2017

That means there are some equities you should throw out of your portfolio right now. Disturbingly some big names; that were once among the best and brightest in stocks, are now among the deadwood you need to jettison.

Read more

Disastrous Holiday Season Looming for Retailers

Investors should pay close attention to what happens at Target and Macy’s this holiday season. Their performance; or lack of it, might show us where American retail is going and what effect Amazon is really having on the market.

Read more

Amazon and Other Threats to Costco

Walmart would like to be more like Costco for one simple reason: cash. Costco is a very cash-rich company, it reported a net income of $2.41 billion on November 30, 2016.

Read more

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.

Read more

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.

Read more