2021-06-15 21:31:21
Dear investors,
today we have a speculative idea: buy stock of the Dollar Tree retail chain (NASDAQ: $DLTR) to invest on the savings of American consumers.
Growth potential and duration: 10% in 15 months; 8% per year for 15 years.
We are taking stock now at $ 101. And then there are two options:
1.Wait for the price increase and sell for $ 111. I believe that we will be able to achieve this result in the next 15 months;
2.We hold shares for the next 15 years. I think that during this time the company will be able to fully capitalize. Maybe in 5 years, having reached a certain level of income, it will introduce dividends, which will attract additional investors to the shares.
Why stocks might go up: The population in the United States will get poorer, and the company will be able to make money from it.
What the company makes money on?
This is a chain of cheap stores, which is reflected in the name: most of the goods are sold for $ 1. The price range in the store as a whole is from $ 1 to $ 10 per item.
The company's revenue, according to the report , is split across two networks.
Dollar Tree - 52% The operating profit of the company is 12.04% of the segment's revenue. It is a chain of 7805 stores. The segment's revenue is divided into the following types of goods:
Consumed goods - 48.3%. Food and beverage, paper and chemical products for the home, medicines and personal care products.
Miscellaneous - 46.7%. Toys, cutlery, gifts, party decorations, postcards.
Seasonal goods - 5%. Products for various holidays.
Family Dollar - 48%. This is almost the same as Dollar Tree, but the range is wider. The operating profit of the company is 5.35% of the segment's revenue. It is a chain of 7880 stores. The segment's revenue is divided into the following types of goods:
Consumed goods - 76.5%. Same as Dollar Tree in a similar category, plus diapers, pet products and auto products.
Household goods - 8.8%. These are bed linen and decor items.
Clothing and accessories - 5.6%.
Seasonal goods and electronics - 9.1%. Party supplies, cheap prepaid phones, toys, school supplies.
The company makes almost all of its sales in the United States. There are a couple of stores in Canada.
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This ideas are not advices, please apply them carefully.
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