Message Font: Serif | Sans-Serif
No. of Recommendations: 17
Often mentioned here in the past, Dollar Tree looks good to me at $38.

Not screamingly cheap at about 14 times current run-rate earnings, and
not a big fall from its high last June around $57, but I like 'em.
With essentially no debt and steadily rising earnings I think EPS will grow for quite a while.
They've bought back about 4.4% of their shares each year on average in the last 9 years.
All of book/share, cashflow/share, sales/share have risen 16%-17%/year in the last decade.
Net return on assets in the 20-30% range in the last few years.
With luck it's a great business (and simple too!) at a fair price rather than a fair business at a great price.
Target price >=double in <=5 years which means >=15%/year for that period.

Might get cheaper. If so I'll add more.
I did a synthetic long, very rare for me to get that fancy.
(write a put and buy an ITM call: essentially all the risk and reward
but little or no cash up front, though that's not really why I did it)

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.