Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Wal-Mart

Good Stocks

American Credit Card Companies Are flush with Cash

Despite the risks, the U.S. credit industry is capable of generating a lot of cash, which can lead to high levels of float. Float is Warren Buffett’s term for a constant stream of revenue or stockpile of cash that a company can tap or borrow against at any time. Classic examples of float include credit card fees and insurance policy premiums.

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Crazy StocksStocks

Target & CVS: Is It Canada All Over Again?

Target already lost a lot of customer loyalty with the data breach. If the pharmacy sale gets botched, the results could be worse, particularly if CVS provides a lower level of customer service or major snafus such as CVS not being able to process Target prescriptions result.

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Long Ideas

Dollar General: a Surprising Retail Success Story

If that wasn’t enough, the amount of Dollar General’s revenue growth actually exceeded that of Target. The numbers indicate that Target’s TTM revenue increased by $1.46 billion between April 2014 and April 2015, rising from $71.23 billion in 2014 to $72.69 billion in 2015.

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Long Ideas

Beijing’s New Open Door Bodes Well for Alibaba and Other Online Retailers

Other organizations that could benefit could be Netflix, Etsy (NASDAQ: ETSY), Sears (NYSE: SHLD), Staples (NASDAQ: SPLS), Best Buy (NYSE: BB) and Walmart (NYSE: WMT). All of these retailers could get access to the $404 billion Chinese market through alliances with Alibaba and stores on Tmall. Walmart, which already has a presence in China and a working relationship with Alibaba, could be in a great position here.

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Crazy StocksStocks

Target Switches Gears in the Grocery Aisle

hat gives Target more control over pricing and promotion and increases its ability to offer special discounts or promotions to loyal customers; for example, lower prices to those who use its popular shopping apps and credit cards. This strategy has worked well for Kroger, which often undercuts Walmart Stores Inc.’s (NYSE: WMT) prices with its house brands. A similar strategy has worked well for Costco Wholesale Inc. (NASDAQ: COST), which heavily pushes its store brands.

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Grocery WarsThe Death Spiral

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.

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The Death Spiral

The Strange World of Eddie Lampert

The transformation, like the Lands’ End (NASDAQ: LE) and Sears Hometown & Outlet (NASDAQ: SHOS) spinoffs, is actually the looting of Sears. Like a dictator who has destroyed his nation’s economy, Lampert is now selling its resources off to the highest bidder. Then he pockets the proceeds and flies away in his private jet.

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