Investing Idea: Discount Stores
When times change, savvy investors look for ways to use them to their advantage. Consider the stock market troubles. A few months ago, while many were abandoning ship, savvy investors were bargain hunting and buying more stock.
This mindset can also carry over to the types of stocks that you invest in. I thought this bit of investing news from Talk Stock Trading was interesting:
Today Dollar Tree surprised Wall Street by reporting a quarterly sales increase of eight percent and a profit increase of fourteen percent. The company posted sizable gains on the sale of food, cleaning products and health-care items as consumers sought relief from sky-high gas and food prices.
This Dollar Tree (DLTR) thing presents a promising investing idea. As worries of a recession (whether we are “technically” in one or not is irrelevant — people still feel the pinch) mount, consumers are cutting back. Whether it’s buying generic brands at the store, eating at restaurants less or buying products at the discount store, Americans are starting to see where they can cut back.
Other discount stores that may see some success include Family Dollar (FDO), Big Lots (BIG) and even Wal-Mart (WMT).
Looking for bargains
Of course, before deciding to invest in a stock, it is important to look things over carefully. Don’t just run with an investing idea because it seems like a good idea to other people. Check the fundamentals of the company, and determine whether or not it is likely to remain in a good position. And check for growth potential.
Thing of businesses that might see some popularity due to current economic conditions. This way you can hedge against inflation and try to find your own way of making the best of trying economic times.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.
Tags: stock market, investing news, investing blog, investing idea,
recession, investments, WMT
