InvestIdeas

A "LOW END" UPTREND

Response to our "shopping" note yesterday: "Sure… rich people are still blowing money at the mall… but nobody else has cash to spend."

In yesterday's edition, we pointed to the surging shares of Taubman Centers (TCO) as "real world" proof the U.S. economy is doing better than pessimists would have you believe.

Taubman Centers is a huge shopping mall operator. Its tenants cater to upper income shoppers. And counter to what many believe, lower income chains are also doing well. Just ask Dollar General (DG)…

Dollar General is one of America's largest "discount retailers." In other words, it sells cheap stuff. Its stores aren't located in "prime" locations. It doesn't sell "prime" brands. Most folks who shop at Taubman's malls would only use a Dollar General bathroom in an emergency. It's a different business than selling iPads or $100 shirts.

A different business, yes. But as you can see from today's chart, it's working. Dollar General has climbed 56% in the past two years. Revenues and profits are growing. And the stock recently struck a new 52-week high. Dollar General's fellow "low end" chains Family Dollar and Dollar Tree sport similar charts.

Bottom line: Whether it's on the "low end" or "high end," America is shopping with gusto.

www.dailywealth.com

Dollar General Corp. (NYSE:DG)

Dollar General Corporation, a discount retailer, engages in the provision of various merchandise products in the United States.

The company offers various consumable products, including paper and cleaning products, such as paper towels, bath tissue, paper dinnerware, trash and storage bags, laundry, and other home cleaning supplies; packaged food, comprising cereals, canned soups and vegetables, condiments, spices, sugar, and flour; perishables consisting of milk, eggs, bread, frozen meals, beer, and wine; snacks that include candies, cookies, crackers, salty snacks, and carbonated beverages.

It also provides seasonal products, including decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive, and home office supplies; and home products comprising kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed, and bath soft goods.

In addition, the company offers casual everyday apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories.

http://todaysbigstock.com/2013/09/17/do ... rp-nysedg/

Dollar General (DG) Will Deliver Big Gains in 2016

Dollar store growth is strong, as are DG’s fundamentals

By Hilary Kramer

Source: Game Changers

http://investorplace.com/2016/01/dollar ... pItQRV96M8

Dollar General (DG) Will Deliver Big Gains in 2016

Dollar store growth is strong, as are DG’s fundamentals

By Hilary Kramer

Source: Game Changers

http://investorplace.com/2016/01/dollar ... pItQRV96M8

not vested

Dollar General (DG)
Market Cap: $21 billion

Unlike Cisco, Dollar General (DG) isn’t worth hundreds of billions of dollars. But it is worth $20 billion, making it a large-cap company, and as I mentioned just a moment ago, I feel strongly that a flight to safety on Wall Street will result in subsequent outperformance by large- and mega-cap names.

But merely being a large-cap stock doesn’t automatically mean DG is a surefire stock to buy in the midst of a selloff. What’s unique about Dollar General is its insulation to such crises.

As a for instance, on Friday, Jan. 15, the Dow Jones was off nearly 400 points, and only 11% of stocks in the stock market universe rose that day. DG was a part of that elite 11% club.

That’s likely because, as a discount retailer, investors expect its business to actually improve in difficult times, such as when consumers become more price-conscious.

Source: Investor Place

Dollar General shares climb around 20% since mid-November.

Dollar General shares climb around 20% since mid-November.

Discount retailer Dollar General strikes a new all-time high… up 20%-plus in one month.

THIS DISCOUNT RETAILER IS SOARING

Today's chart tells us that the "disappearing middle class" trend shows no sign of slowing down...

In short, low interest rates and the Fed's loose-money policies are allowing the wealthy to borrow money and buy stocks, real estate, and other hard assets. But rising prices squeeze lower-income wage earners, who have to pay more for everything while their wages stagnate or fall.

Because of this, Americans are choosing to shop at the smaller discount retailers. And one in particular stands out to us: Dollar General (DG).

Dollar General sells everyday goods people need at low prices. It is the largest discount retailer in the U.S. by number of stores, with more than 12,000 in more than 40 states. And its large physical presence means the average American is in closer proximity to a Dollar General than he is to the nearest Wal-Mart.

As you can see below, shares have taken off. The company is up 25% over the past month, and just struck a new all-time high yesterday. This trend is still going strong and DG continues to be one of the prime beneficiaries.

Source" Daily Wealth

Discount retailer Dollar General hits an all-time high.