Is Dollar Tree Making Money?
Even with a good holiday season, Dollar Tree may lack the resources to survive or even remain competitive. It reported revenues of just $21.52 billion in October 2017.
Read More
Market Mad House
In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
Kroger (NYSE: KR)
Walmart is Growing but is it Making Money?
Mr. Market certainly noticed that growth, Walmart’s stock price shot up from $90.26 on November 8 to $96.40 on November 22, 2017. If Walmart has a good Black Friday that price will exceed $100 a share by December 1.
Now for the astounding news, Walmart’s revenues will clear a half a trillion dollars sometime next year if the current growth rate continues. Walmart reported $495.10 billion in revenues for October 31, 2017, up from $490.01 billion in July 2017.
If that performance is repeated in the next quarter; Walmart will report around $500 billion or half a trillion dollars in revenue early in 2018. History seems to support this conclusion; Walmart’s revenue has been growing for the past seven quarters. It has posted growth for every quarter since January 2016.
Read More
It is not Amazon that CVS Health is Afraid of
The real reason why CVS Health wants Aetna is to expand its vertically-integrated business model. Vertical integration means that one company controls as much of the production, financing, marketing, and distribution of a product or service as possible.
CVS Health is already partially vertically-integrated because it operates both drugstores and prescription-management plans. CVS operates clinics in some of its stores for the exact same reason. Buying a health insurance company would give CVS, even more, control over the process.
Read More
Walgreen Boots Alliance Struggles to Survive
Medicare for All would be a boon for Walgreens by financing millions of new pharmacy customers and creating hundreds of thousands of new customers for its in-store clinics. That alone makes WBA a really good value investment to add to portfolios for the future but is it a value investment for the present.
Therefore a good wa
Read More
Retail Apocalypse Heats up 6,700 stores have closed in 2017
2017 has become the worst year for store closings in the United States possibly since the Great Depression. There is a strong possibility that the actual number of store closings might exceed 10,000. Such a number is possible because analysts like Credit Suisse may not be counting franchisees and mom and pop stores that will also be going under.
Read More
The Ever Growing List of Doomed Retailers
Expect to see a mass die-off of sick retailers in January and February of 2018 as the dust from the 2017 holiday season settles. If it is anything like last year’s numerous retailers are likely to report losses and more than a few will shut down.
Read More
Kroger Gets no Respect from the Market
Finally, Kroger’s low price raises an intriguing possibility that will creep some people out. What would happen if Amazon bought Kroger?
It’s not probable; and might not pass muster with the Federal Trade Commission (FTC), but it is a possibility we need to consider right now. Kroger is such a tremendous bargain right now, that it might attract Jeff Bezos’ attention.
Read More
Dollar Tree Grows Again
One thing is certain both Dollar Tree and Dollar General are lousy investments because they are overpriced. Neither chain has done anything justify the high stock prices reported on September 12, 2017.
Read More
Some Weird Aspects of Amazon and Whole Foods
It looks as if the Amazon-owned Whole Foods is going to become more like a traditional supermarket. The big question we have to ask is will that be winning strategy for either brand?
Read More
Walmart keeps Growing and What’s Wrong at Amazon
A possible glimpse of Walmart’s future is provided by America’s second largest grocer Kroger. The situation at Kroger should certainly give WMT investors pause.
Read More