Dollar Tree

[Jill Carpenter]

This morning I started to feel my "gambling itch" and started off with looking at some local casinos, but reminded myself I still need to go into the financial advisor and diversify what I've got in there.

 

I found a list of 25 stocks that were recommended for 2016, and my all time favorite dollar store is on the list!

 

Any one else here go on occasion to the dollar store?

 

I recently spent over $20 there just in the past week before Mothers day for getting the card, gift wrap, and birthday stuff for my sister.

 

Other things I get sometimes: 4 rolls of TP for a dollar. Large laundry detergent (that smells and works just fine) for a dollar. Solar lights for a dollar.

 

Stemless wine glasses, kitchen utensils, iphone covers, stationary items, etc.

 

Have gone in there on the weekend and the store was hopping.

 

Visited someone last week who gets real mackerel cans and uses them for cat food.

 

40 ibuprophen tablets for a dollar. If you ever buy advil or ibuprophen in the grocery store you'd realize how wonderful this is.

 

Holidays are the best with stocking stuffers. Bought a good 30 bucks worth of stuff during xmas time and had lots of useful fun gifts for everyone.

 

Anyone else like the dollar store here?

 

It wouldn't matter how much $ I ever had. I would always love this store provided it keeps on doing what it's been doing.

 

Someone in line ahead of me last week wanted to take some cash out. They charge a dollar fee for that and the guy got upset. It's the only store I'd actually not complain about them charging for that as everything else in there is so dang cheap.

[yukon]

My local Dollar Tree had a BIG stack of Marijuana drug test kits. I should have bought one just because it cost a dollar.

 

Really most of that stuff at Dollar Tree looks like junk (I know, it's only a dollar). I think buyers get hooked on the fact it's only a dollar, sort of like fiverr gigs (it's only $5).

 

It reminds me of a comedian (can't remember who) once said he bought a city bus pass because it was such a damn good deal. He doesn't even ride the bus.

[Terra]

This morning I started to feel my "gambling itch" and started off with looking at some local casinos, but reminded myself I still need to go into the financial advisor and diversify what I've got in there.

 

I found a list of 25 stocks that were recommended for 2016, and my all time favorite dollar store is on the list!

 

Any one else here go on occasion to the dollar store?

 

I recently spent over $20 there just in the past week before Mothers day for getting the card, gift wrap, and birthday stuff for my sister.

 

Other things I get sometimes: 4 rolls of TP for a dollar. Large laundry detergent (that smells and works just fine) for a dollar. Solar lights for a dollar.

 

Stemless wine glasses, kitchen utensils, iphone covers, stationary items, etc.

 

Have gone in there on the weekend and the store was hopping.

 

Visited someone last week who gets real mackerel cans and uses them for cat food.

 

40 ibuprophen tablets for a dollar. If you ever buy advil or ibuprophen in the grocery store you'd realize how wonderful this is.

 

Holidays are the best with stocking stuffers. Bought a good 30 bucks worth of stuff during xmas time and had lots of useful fun gifts for everyone.

 

Anyone else like the dollar store here?

 

It wouldn't matter how much $ I ever had. I would always love this store provided it keeps on doing what it's been doing.

 

Someone in line ahead of me last week wanted to take some cash out. They charge a dollar fee for that and the guy got upset. It's the only store I'd actually not complain about them charging for that as everything else in there is so dang cheap.

 

 

I only buy the big gift bags there and maybe once or twice a Christmas ornament.

 

Other than for gift bags, I don't shop them at all.

 

 

Terra

[HeySal]

I love the dollar tree for kitchen stuff for camping and since I always either break or lose reading glasses, just buy a handful at a buck a crack - not much loss when I can't find them later.  I've bought party supplies etc, too.  I like those stores. They don't always have what I'm looking for......and some things aren't really quality - but some of the stuff is a great deal for a buck. 

[Jill Carpenter]

I love the dollar tree for kitchen stuff for camping and since I always either break or lose reading glasses, just buy a handful at a buck a crack - not much loss when I can't find them later.  I've bought party supplies etc, too.  I like those stores. They don't always have what I'm looking for......and some things aren't really quality - but some of the stuff is a great deal for a buck. 

Yes! The reading glasses. I've been wearing the same pair of reading glasses for about the last 4 months now but I don't hesitate to grab a new pair on visits just to always have them. I fall asleep with them on my head and I'm surprised they last as long as they do after me rolling all over them at night.

 

And I can see the camping thing. The kitchen wall they have is perfect for every utensil you need but should you lose it you won't cry.

[Terra]

I love the dollar tree for kitchen stuff for camping and since I always either break or lose reading glasses, just buy a handful at a buck a crack - not much loss when I can't find them later.  I've bought party supplies etc, too.  I like those stores. They don't always have what I'm looking for......and some things aren't really quality - but some of the stuff is a great deal for a buck. 

 

 

Hubby and I are looking to purchase a motor home soon and I never considered shopping the Dollar Tree for camping stuff for the kitchen. Thanks for the heads up. 

 

 

Terra

[HeySal]

This is actually a hilarious thread considered it's parked in the investment forum.  People will look at this and imagine us looking like the pictures of The People of Walmart. LMAO. 

[Jill Carpenter]

All of your comments give me more information as to if this is something I should really shift some stock into.

 

The general overall market trend is important - yes. But so is hearing if others have the same types of personal experience as I do.

 

While it's not good to mix emotions with money, it's other's emotions I'm interested in.

[HeySal]

All of your comments give me more information as to if this is something I should really shift some stock into.

 

The general overall market trend is important - yes. But so is hearing if others have the same types of personal experience as I do.

 

While it's not good to mix emotions with money, it's other's emotions I'm interested in.

Oh okay -- now it all makes sense.     I couldn't figure out what the point was here (maybe I should go back and read the OP? LOL) other than ways to stretch and save money.  EDIT: Okay - just reread the OP. LOL. OOPS. Bimbo button turned off now. (I hope). 

 

Well, let me say a few words, then, about the Store out here in the West.  We have Dollar Trees out here all over the place.  There are a few with similar names, but they are more like the old fashioned 5 and Dimes than a Dollar store. Some of their stuff isn't that much different from pricing at Walmart or Kmart or such - the stores are just smaller.  The name's like Family Dollar can confuse people.  Anyway -- the actual Dollar Tree stores can be found in just about any town over a couple thousand people.  I've never seen one going out, or that has gone out of business.  I've never walked into one that did not have at least one other customer there no matter what time I've gone in.  Sometimes I put off getting a few items I want from them just because I don't feel like standing in line at the time.   

 

I've also noticed that the customer base is actually appears (of course, I have no survey to back this up, I'm reporting it on APPEARANCE of the customer base I've seen) to be a wider variety of socio-economic base than I've seen at places like Walmart.  Not sure the reason for that - the stores are smaller and people don't want to hunt through acres for a few cheap items? The dollar only for little things people need but don't feel like really springing a wad on? Convenient access from other errand stops? 

 

Hard to say without research, but I would think the investment would be fairly solid. I know that people in this country aren't getting any wealthier and will be prone to start hunting out the bottom line deal when they need things until the are getting wealthier again. 

It would be a more long-term type investment. I think you've missed the flashpoint stocks on this one. 

[whateverpedia]

Just had a quick look at the stock on Google Finance. It looks like the best time to buy it was in the 20th century.

 

It's currently trading on a P/E (price/earnings) ratio of 64.74. That means it would take over 64 years to recover the cost of the shares from their current earnings. It doesn't pay a dividend, so you're going to have to rely on increases in the share price to make money from it.

 

Over the last year the share price has basically moved sideways indicating that it's grown about as far as it can. Future growth seems to be dependent on a few possible avenues:

 

1) Opening more stores - OK if done from existing cash flow. Potential for disaster if done with borrowed money.

 

2) Acquiring other businesses. This is OK if they do that out of existing cash flow. If they do it through debt, well I'm sure you can see the pitfalls of that. If they do it by issuing shares to the target company, that dilutes existing shareholders stakes. I'm sure you can see the pitfalls there as well. As with opening new stores, the risk of using debt is somewhat mitigated by the current low interest rates, however all the rumblings coming from the Fed at the moment are for interest rates to rise, so the risk level is substantially increased.

 

3) Expansion into new markets. This is an even higher risk strategy than the first two. Firstly they've got to have a full understanding of the culture of the new countries. Despite its success in the US, WalMart has been an abject failure in other countries. Secondly, the new countries may already have their own equivalents of their business. In the UK there's The Pound Shop, where everything sells for a pound (£). Australia has a lot of independently owned shops that are similar. Opening new stores in new countries is a very costly exercise with no guarantee of any success.  Buying existing businesses is fraught with the same risks as for point 2 above, with the added risk of "culture shock" thrown in.

 

As a value investor*, I can see no compelling reason to buy the shares at the current level. As a growth* investor, there isn't a great deal to recommend them either. As an income* investor, there is absolutely no reason to buy them. Traders* may like to keep an eye on them as a potential trading stock, ie buy on lows, sell on highs. Since the low point was about 6 months ago (have a look at the 1 year chart on google finance), traders would be looking at selling them about now. So once again, no compelling reason to hit the buy button at the moment.

 

At its current price I'd give it a miss. If you were going to invest in them as a long term holding, it looks like you missed the boat by at least 16 years. There may (or may not) be potential for short term trades, but once again, not at the moment.

 

 

STANDARD DISCLAIMERS APPLY TO THE ABOVE COMMENTS

 

 

 

* In a future post I'll cover the differences between the different types of investors (value, growth, income and traders) in the hope of helping you determine what category/categories you fit into.

[HeySal]

First comment............I never knew you were into finance. Wouldn't have even guessed that.  Seems like you've got a solid handle on it, though. I'm impressed........and glad to know you. I might want a second opinion sometime before I do my usual rash take a flying leap bit that us spontaneous types are prone to.  I control that better in this field than in some others, lol.  It's actually a good trait in the gem hunting fields. A bad one in finance. 

 

Next - I knew they were already developed but didn't realize they'd been around this long. 16 years since peak investment - wow. Your figures astounded me. 

 

At any rate - that was about too valuable of a post for me to handle it coming from someone behind that avatar.  Thanks for the analysis!  I'm sure Jill will love it. 

[yukon]

Speaking of stocks...

 

I noticed Berkshire Hathaway (Warren Buffett) bought into Apple. What's odd about that is WB has a history of buying into the same/similar types of businesses and avoids tech businesses like the plague... which tells me that Berkshire Hathaway is phasing out Warren Buffett and has someone else (younger most likely) making major purchasing decisions.

 

Personally I think water related stocks with dividends is going to be a cash cow.

[whateverpedia]

Speaking of stocks...

 

I noticed Berkshire Hathaway (Warren Buffett) bought into Apple. What's odd about that is WB has a history of buying into the same/similar types of businesses and avoids tech businesses like the plague... which tells me that Berkshire Hathaway is phasing out Warren Buffett and has someone else (younger most likely) making major purchasing decisions.

 

Personally I think water related stocks with dividends is going to be a cash cow.

 

Apparently that purchase wasn't made by Buffett, but by a younger member of the BH team. You could be right about Warren slowly stepping down. Let's face it, he's no spring chicken.

 

As far as water is concerned, I can't argue with you on that one. Ideal for an income investor with a bit of growth thrown in to sweeten the deal. the only thing to watch is the level of interest rates. If the rates rise to close to the dividend yield, people will switch out and move into either bonds or just cash. Why bother taking a risk on the stockmarket when you can get a similar (or better) yield from cash or bonds.

[HeySal]

 

 

Personally I think water related stocks with dividends is going to be a cash cow.

I think those - at least from the point of bottled water - are also beyond flashpoint, and if I had those right now, I might be thinking of dumping them off. 

 

Nestle's is about to lose ground on theirs.  People are becoming aware of the bottled water industry pretty quickly.  Nestle's was caught siphoning water from a lake in drought stricken California even though their permit had expired in 1989 - people responded with much anger and legislation ensued.  The citizens of Oregon also just voted down their attempt to acquisition permits for the Columbia gorge, and, I think, other bodies in that state.  There's also a lot of ire building about the amount of plastic waste being put out by these industries. Those products are not going to be sustainable in the long run. 

 

If you are going for water - find something conservation oriented........like there's this portable water jug now that will draw water from the air and fill itself.  The water is pure.  I can't remember the name of the thing.  Not sure if that's on the SE but that's the type of water stocks to be looking at -- purification companies. I think there's going to be a real slam on water filtering within the decade. Potable water is becoming severely short already. 

[yukon]

I think those - at least from the point of bottled water - are also beyond flashpoint, and if I had those right now, I might be thinking of dumping them off. 

 

Nestle's is about to lose ground on theirs.  People are becoming aware of the bottled water industry pretty quickly.  Nestle's was caught siphoning water from a lake in drought stricken California even though their permit had expired in 1989 - people responded with much anger and legislation ensued.  The citizens of Oregon also just voted down their attempt to acquisition permits for the Columbia gorge, and, I think, other bodies in that state.  There's also a lot of ire building about the amount of plastic waste being put out by these industries. Those products are not going to be sustainable in the long run. 

 

If you are going for water - find something conservation oriented........like there's this portable water jug now that will draw water from the air and fill itself.  The water is pure.  I can't remember the name of the thing.  Not sure if that's on the SE but that's the type of water stocks to be looking at -- purification companies. I think there's going to be a real slam on water filtering within the decade. Potable water is becoming severely short already. 

 

 

I should have been more specific.

 

Bottled water doesn't have a monopoly because bottled water can easily be bottled and shipped from anywhere in the world.

 

I was talking about water utilities where buyers are captive. Nobody lives in a house (or whatever) for years and changes water companies. Even If someone moves they're still stuck with one water company (whatever is local to them), they don't have an option. Assumes someone living in an area that has public water/utilities. Most places don't allow home owners to dig a well in city limits (captive buyer).

 

I've lived in the same location for 16 years, my water utility bill has almost quadrupled.

 

The screenshot below is a Google Stock simulation I've been running for a few months, those are real percentage increases in the far right column. A few of those stocks have dividends.

 

[edit]

I threw Coca-Cola into the simulation for percentage/dividend comparison. With the exception of one water utility they're all outperforming Coca-Cola and some are matching or almost matching the dividend.

 

 

 

 

[Jill Carpenter]

I was looking at water options the past few days actually from a personal perspective.

 

I was debating with the tiny house if it might be better to have a personal water tank that could get delivered to. Like the tanks people get for the swimming pools.

 

Water is only supposed to be pennies on the gallon when you search via google - or how it looked from the search I was doing.

 

I may start a different conversation on all this tiny house related stuff as I've been covering quite a bit of ground.

 

What I should really invest in is those self composting toilets. The really nice ones are over 2k.

[yukon]

I was looking at water options the past few days actually from a personal perspective.

 

I was debating with the tiny house if it might be better to have a personal water tank that could get delivered to. Like the tanks people get for the swimming pools.

 

Water is only supposed to be pennies on the gallon when you search via google - or how it looked from the search I was doing.

 

I may start a different conversation on all this tiny house related stuff as I've been covering quite a bit of ground.

 

What I should really invest in is those self composting toilets. The really nice ones are over 2k.

 

...or buy property that already has a septic tank installed.

 

If you're in Florida I'm sure there's lots that once had mobile homes outside city limits.

[HeySal]

I should have been more specific.

 

Bottled water doesn't have a monopoly because bottled water can easily be bottled and shipped from anywhere in the world.

 

I was talking about water utilities where buyers are captive. Nobody lives in a house (or whatever) for years and changes water companies. Even If someone moves they're still stuck with one water company (whatever is local to them), they don't have an option. Assumes someone living in an area that has public water/utilities. Most places don't allow home owners to dig a well in city limits (captive buyer).

 

I've lived in the same location for 16 years, my water utility bill has almost quadrupled.

 

The screenshot below is a Google Stock simulation I've been running for a few months, those are real percentage increases in the far right column. A few of those stocks have dividends.

 

[edit]

I threw Coca-Cola into the simulation for percentage/dividend comparison. With the exception of one water utility they're all outperforming Coca-Cola and some are matching or almost matching the dividend.

 

 

 

 

 

You're right about the figures - and those will be going up.  One of the reasons I live rural. I don't like the crap in municipal water supplies, or the price, etc.

 

I'm not sure if this is true or not, and I won't check into it unless I decide to buy property in this area, but it's said that one of our water tables was sold to Union Pacific.  Out here in desert areas, that means that if another area needs that water - it will be siphoned away from this area, which is a desert area, and although it's only one water table, siphoning it out can devastate it. I have no clue what they expect to do with it, but it would be piped south of here - possibly to CA.   Scary to think about.  I'm hoping that someone gets legislation down to prevent corporate acquisition of water.  I foresee a lot of people and wildlife dying in the future as a result of corporate owned water supplies. 

[Jill Carpenter]

...or buy property that already has a septic tank installed.

 

If you're in Florida I'm sure there's lots that once had mobile homes outside city limits.

This too is another conversation about land which I've also been spending time researching.

 

I have a plot in mind, but still not settled and won't be while I'm sorting out some current estate bullcrap .

[HeySal]

I was looking at water options the past few days actually from a personal perspective.

 

I was debating with the tiny house if it might be better to have a personal water tank that could get delivered to. Like the tanks people get for the swimming pools.

 

Water is only supposed to be pennies on the gallon when you search via google - or how it looked from the search I was doing.

 

I may start a different conversation on all this tiny house related stuff as I've been covering quite a bit of ground.

 

What I should really invest in is those self composting toilets. The really nice ones are over 2k.

I lived out where I had a water tank before. Never again.  It was a headache plus.   It was also hard to get them to tell you where the water came from or get a analysis report from them.  I swear they tanked in water with fluoride at least once.  I'm over it. If I were to buy property, it'd be well-worthy at the least before I sprung any money for the land.