I've recently become interested by Dollar General. The stock has dropped a lot after mixed results. As it looks, Dollar General shouldn't grow that much this year and investors don't like that.
The stock went from about 250$ one year ago to about 125$ these days. And the PE ratio is currently about 15 which is low for such a defensive industry (immuned to recessions).
All the dollar stores are usually sold for a PE of 20-25 and even above (Five Below is much more expensive). That's mostly why I chosed to buy some shares of Dollar General. Of course, buying a lot of shares for a significant portion of a portfolio is rarely a good idea with a new stock, but with 2-3% of my portfolio, I think that it's a rational stake for a very strong and defensive stock.
However, the debt level is a little high. But who cares. We'll all die someday and that kind of information won't matter anymore at this fatal moment.
Dollar General tanked, Dollar Tree tanked. If Dollarama tanks in a similar fashion after tomorrow's earnings I'd be interested in buying. It is part of my personal fund list, a list of companies that I use or shop at.
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