Obviously, good advice not only for its own stock, both in terms of consumers and investors, I would buy Costco Wholesale (COST). This opinion is based on a number of fundamental reasons, as well as the "eyeball test" to buy old you know / see.
No. As for the factor in our local store here in Southern California, is very typical to see all areas of the store completely full of activity. 3 above: It only takes a few visits to Costco to understand what they are doing something right! For us, it simply passes the "eyeball test" on several fronts. I also read that in a number of stores abroad such as Japan, there are literally 10 to 15 minutes with lines of customers waiting to enter
Both Sam's Club and BJ operate on tight margins and cost. The main cost is the face of competition from outside the SAM'S CLUB – a division of Wal-Mart (WMT) – Club and BJ Wholesale (BJ). Therefore, an important element of differentiation is the management of the need to run close to perfect and control costs aggressively. COST, meanwhile, has just announced a 12% increase in sales growth last quarter itself. Competition is fierce in this space, but, ironically, I think management should be (and is) aware of a double-edged sword that is emerging. Part of this has been reinforced by the success of its international operations, along with the impact of a weaker dollar. Both companies follow a very similar business model and you can see at Wal-Mart as an example of a formidable competitor who has struggled through eight consecutive quarters of negative growth in comparable stores.
The same can be said with respect to trading on a premium to its competitors, but the truth is look at the basic health of the state and society to make an "apples to apples." COST is still a very decent value, even after an increase of 38% in the last 12 months. The city about 24 times earnings and a premium to the S & P 500.
With expansion plans in foreign markets more efficient and more space and a huge box in his books, there is no reason for a higher price for BJ or, especially, Wal-Mart. From just a pure P / E perspective, sports really cost a multiple of about 24 more against some of its big box stores like Wal-Mart fellow at 12.50, 19.62 BJ Wholesale, Target (TGT) to 11:55, the dollar general (DG) at 17:15, PriceSmart (strategic plan) in 22.23, Walgreen (WAG) to 16.5, and Family Dollar Stores (FDO) 18 , 03.
Has substantial assets in real estate, with a share of 78% of its stores, which is much higher than any other retailer. Cost in cash and investments exceed the total debt of only about $ 5 billion. Again, where the cost of the shareholders may help justify the possession of a superior kind of multi-enterprise is related to its balance and growth prospects. In the highly competitive scenario, the cost is able to maintain an A + and has about 9% of total debt to capital. This is particularly true with respect to such parameters as the sale price and / ratios of debt / capital.
For COST, I will say that I think management is an added advantage for the possession of the title. It also seems reasonable executive compensation that produces good news back to the picture and admirable. From top to bottom, seem to have a very practical approach to problem reports and daily operations with visits to the store, and so on. I do not believe everything Warren Buffett (Berkshire) sells … but one thing I want to testify that he is not playing with organizations that are weak or those who do not believe in an economic point of view is important to open and respect for their barns senior management team. In addition, Berkshire Hathaway (BRK.A), Charles Munger is on the table, and the cost of Berkshire is one of its major shareholders.
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