Dollar Tree

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Ace Planner's picture
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Joined: 2006-03-09

Does this company strike you guys as a good investment?  17 p/e's, buying back shares, low debt, good cash flow, but no dividends.
Thanks
Ace

Revealer's picture
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Joined: 2005-02-13

Ace: I don't know about Dollar Tree but I wouldn't buy ANYTHING @ greater than mkt. PE or less than a mkt. yield. Benchmark now @ 15-16 PE and 1.9% yield (S&P). 14 fwd. PE if you believe the bulls.

rightway's picture
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Joined: 2004-12-02

I think there is more to look at than P/E and dividend. We are moving
into a time when lower quality growth stocks will out perform.  I
don't know about Dollar Tree, but I do like companies that have an
aggressive outlook and earnings growth expectations are high.  

Ace Planner's picture
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Joined: 2006-03-09

considering HNW clients would prefer share buy-backs to dividends, if they're aggressive enough, does dividend really matter?  With almost no debt, DLTR appears to be a good bargain.
Plus, what a name.
Ace

Ace Planner's picture
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Joined: 2006-03-09

I guess the real question is: Is DLTR a good long term buy, or is the valuation fundamentally flawed in some way?
Ace

Incredble Hulk's picture
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Joined: 2006-05-26

My clients all shop at Dollar Tree.  It is actually two doors down from my office on the other sid of the Chiropractor.

Indyone's picture
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Joined: 2005-05-30

Incredble Hulk wrote:My clients all shop at Dollar Tree.  It is actually two doors down from my office on the other sid of the Chiropractor.
...you're killing me again, man...

troll's picture
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Joined: 2004-11-29

Ace Planner wrote:I guess the real question is: Is DLTR a good long term buy, or is the valuation fundamentally flawed in some way?
AceYES!

Incredble Hulk's picture
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Joined: 2006-05-26

I just know they have great Client Appreciation gifts there!

Ace Planner's picture
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Joined: 2006-03-09

Joe, that was deep.  So you're saying while it may be a good long term buy, it's not at this price.  Whoa, how do you do it?
Ace
PS Thanks for the laughs Incredble Hulk.

Revealer's picture
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Joined: 2005-02-13

Ace Planner wrote:
considering HNW clients would prefer share buy-backs to dividends, if they're aggressive enough, does dividend really matter?  With almost no debt, DLTR appears to be a good bargain.
Plus, what a name.
Ace Again, don't follow Dollar Tree. Dividends DO matter. Only about 60-70% of total market return of stock market past 70 yrs. My HNW clients understand that dividends are treated the same as LT cap. gains. 15% max tax. Further, stock buybacks don't put mgmt. on same side of table as shareholders. Most buybacks are instituted to satisfy option grants (what a cruel joke). DELL is the poster boy for that game.

Ace Planner's picture
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Joined: 2006-03-09

Revealer, good answer, but I'd have to argue that capital gains deferred are sometimes better than taken now.
Ace

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