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No. of Recommendations: 4
I think that if you're going to buy it you need to explain why that DSI number isn't a symptom of underlying issues in the business model.

i think it is expensive relative to outlier earnings but am not as worried about the above - tjx and rost is mostly apparel (far faster turns), dltr and dg single price point consumables, five children oriented merchandise, big lots bigger stores with a focus on furniture and very little on close outs these days, and OLLI is 100% closeouts. 100% from what I can tell.

I mean, the toy buyout they did was one-time and clearly you are going to get spikes based on merchandise availability. Plus, from my shopping visits, they are not aggressive at all on mark-downs - saw the same books (Stocks 2012) sit on the shelf for years and years. If you've been to these stores they often cram stuff in every place you can imagine, in a way other stores do not. FIVE for example is a very pretty, open store with clearly defined 'worlds' and clean merchandise selection and a lot of room to shop. OLLI is more flea market, esp. since the stores are huge compared to most of these places.

Bottom line - it could always be a problem, but I don't think inventory density is an issue.
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