What Did You Buy Today?

[fenders53]

(05-30-2020, 08:20 AM)EricL Wrote:

(05-29-2020, 08:48 PM)fenders53 Wrote:

(05-29-2020, 10:09 AM)EricL Wrote:

(05-28-2020, 02:53 PM)EricL Wrote: Sold out of my ROST and opened a new position in DG with a portion of the proceeds.

Remainder added to my positions in NEE and FLO to bring them closer to full-weight ahead of next week's ex-divs.

Had a tough time selling ROST as I believe in the long-term prospects of the company, but in the end I felt sticking to my goal of 10% income growth was important.

DG had absolute blowout earnings this morning, and I think it will continue to do well going forward.

DG up 3.6% today after yesterday's sell-off. So far it look like I timed that trade pretty well.

Have we finally corrupted you with discussion of three day price movements lol?

I was corrupt long before I met you guys! =)

Did you see their quarter though?

• 21.7% comparable sales growth compared with 8.7% consensus.
  
• 10.3% operating margin compared with 7.7% a year ago.
  
• Resumption of buyback program.
  
• Q1 GAAP EPS of $2.56 was a beat by $0.82.
  
• Revenue of $8.45B (+27.6% Y/Y) beat by $790M.
  
• Cash Flows From Operations Increased 202.4% to $1.7 billion
  

For fiscal year 2020, the Company continues to plan for:

• Capital expenditures in the range of $925 million to $975 million
  
• Approximately 2,600 real estate projects, including 1,000 new store openings, 1,500 mature store remodels, and 80 store relocations.
  

So full-year capex is essentially covered by the growth in cash flows from Q1 alone!

Three quarters of the US population lives within five minutes of a Dollar General store. With 20% unemployment, I expect those stores will continue to do well.

I could be talked into DG on a market dip.  I sold my "normal" retail and believe that was a sound decision given risk/reward in this economy.