Dollar Tree Archives - Market Mad House

daniel July 16, 2018July 16, 2018 Are Dollar Tree’s Losses growing?, Dollar Tree, Dollar Tree Inc. (NASDAQ: DLTR), Dollar Tree is building a Mountain of Debt, Dollar Tree is Likely to Collapse, Dollar Tree’s Race with Death, How Instacart and Amazon can Kill Dollar Tree, How Much Cash Does Dollar Tree Have?, Is Dollar Tree in Trouble?

Is Dollar Tree Making Money?

What Dollar Tree is borrowing against is unclear because its cash and assets are limited. Dollar Tree’s assets were valued at just $15.827 billion on May 5, 2018. The company’s cash flow is limited and cash reserves are nonexistent.
Most likely, Dollar Tree is borrowing against its stock valuation. Dollar Tree shares were trading at $86.09 on July 16, 2018. That gave the company a Market Capitalization of $20.47 billion on the same day.
If my thesis is true, Dollar Tree would collapse if its stock lost any value. If Dollar Tree shares dropped below $60 or $50 the company might collapse because it would not be able to borrow money.

Long Ideas

daniel July 18, 2015July 18, 2015 AAPL, All Cars could be Self Driving by 2015, Auto Alliance, Auto Industry Developing Standards for Self-Driving Cars, Disruptive Technology, Dollar Tree, Elon Musk, GOOG, GOOGL, Google, Google Self Driving Car, Information Sharing and Analysis Center, PayPal, Self Driving Car Standards, Self-Driving Vehicles Will Empty Local Government Coffers, Tesla, TSLA

Auto Industry Developing Standards for Self-Driving Cars

One reason for this system is to make it easier to insure self-driving vehicles. Such standards will be vital if insurers are to develop policies for autonomous vehicles.

Grocery Wars The Death Spiral

daniel May 12, 2015April 25, 2016 Albertsons, Charley Munger, COST, Costco, Dollar Tree, Family Dollar, FDO, KR, Kroger, Safeway, Wal-Mart, walgreen, WMT

Kroger Is Winning the Grocery Wars

Safeway and Albertsons currently have around 2,230 stores—almost as many as Kroger—but they had combined revenues of $60 billion in 2014, The San Francisco Chronicle reported. In contrast, Kroger, which operates 2,619 supermarkets, reported a TTM revenue of $108.47 billion on January 31, 2015. Kroger’s TTM revenue grew by 8.55% in 2015.

Good Stocks

daniel April 30, 2015March 6, 2016 COST, Costco, CVS, CVS Health, Dollar General, Dollar Tree, Family Dollar, FDO, KR, Kroger, Mr. Market, Mr. Money Mustache, Target, TGT, Value Investing, WAG, walgreen

CVS Health Has a Lot to Prove

My prediction is that CVS’s revenue will continue to grow but none of its competitors will follow its lead and go tobacco free. Instead, CVS will be something of an anomaly, which will buy it a lot of good publicity and support from the healthcare industry.

Market Insanity

daniel April 27, 2015March 23, 2016 Amazon, American Express, AMZN, Charley Munger, COST, Costco, Disruptive Technology, Dollar General, Dollar Tree, KR, Target, TGT, Value Investing, Wal-Mart, Warren Buffett, WMT

Lilly Pulitzer Mess Shows What’s Wrong at Target

It is no coincidence that Amazon reported a TTM revenue growth rate of 15.08% on March 31, while Target and Walmart’s sales were staying flat. America’s middle class has changed its shopping habits dramatically in the past decade.

Long Ideas

daniel April 23, 2015April 20, 2016 BIG, Big Lots, COST, Costco, DG, DLTR, Dollar General, Dollar Tree, Family Dollar, KR, Kroger, Target, TGT, Walmart, WMT

My Impressions of Walmart Neighborhood Market

Walmart has figured out how to make a successful small box format. Companies like Dollar Tree Stores (NASDAQ: DLTR) and Dollar General (NYSE: DG) as well as regional grocers had better take notice. Walmart has proven itself capable of producing a better small box store.

Politics

daniel April 11, 2015March 29, 2017 AAPL, ABX, Amazon, AMZN, Apple Pay, Apple Stock, Benjamin Graham, Disruptive Technology, Dollar Tree, Fair Tax, Family Dollar, Gold, Income Inequality, Income Tax, IRS, Mr. Market, Mr. Money Mustache, Venmo, Wal-Mart

Steps Government Could Take to Reduce Income Inequality

• Abolish the payroll or withholding taxes, which take a percentage of a person’s salary. These hit the working poor heavily, and they do not raise enough money to cover the costs of programs like Social Security and Medicare.

My Thoughts

daniel April 7, 2015February 18, 2016 Bank of America, Benjamin Graham, Berkshire Hathaway, California Drought, Charley Munger, COST, Costco, Dollar Tree, Food Prices, Groceries, KR, Kroger, Markets, Mr. Market, Mr. Money Mustache, Safeway, SFM, Sprouts, TSLA, Value Investing, WFM, Whole Foods

California’s Megadrought, Why There’s No Water Shortage and Why the Market Could Be the Solution

We now have a glut of oil, and there’s a very good chance we’ll have a glut of water in a few decades after we implement all the new technology.

Uncategorized

daniel April 5, 2015February 18, 2016 Amazon, AMZN, Charley Munger, COST, Costco, Disruptive Technology, Dollar General, Dollar Tree, Family Dollar, FDO, GOOG, KR, Kroger, Mr. Money Mustache, Venmo, Wal-Mart, walgreen, WMT

Walmart Feels the Heat

Walmart is no longer on the cutting edge of retail; it cannot even compete with bottom-feeding dollar stores. The Behemoth from Bentonville still makes a lot of money; it just cannot attract any new customers. What is going on here?

Market Commentary

daniel April 3, 2015April 20, 2016 Benjamin Graham, Berkshire Hathaway, Charley Munger, COST, Costco, CVS Health, DG, Dollar General, Dollar Tree, Family Dollar, FDO, RAD, Rite Aid, Value Investing, WAG, Wal-Mart, walgreen, Warren Buffett, WMT

Who Else Would Acquire Rite Aid?

Yes it is a bit of a dark horse, but Rite Aid does meet some of Warren Buffett’s value criteria: it is a good company that has been going through a rough patch yet still has the potential to generate a lot of cash. It also has an easy-to-understand business model in a decidedly unglamorous industry—selling shaving cream and prescriptions. Rite Aid also meets another one of Uncle Warren’s classic criteria: it is a company that an idiot could run if necessary.

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