Family Dollar: A Bargain Stock for a Bargain Retailer
Jim Van Meerten submits: I'm from Charlotte and the South likes its hometown chain, Family Dollar Stores (FDO). We know a bargain when we see one, and management does too. The Levine family's interests still control more than 8% of the stock so they had the company buy back 4 million shares in February and have authorized the company to buy back an additional $ 295 million more. The earnings increased 35% year over year so that's better than paying themselves a taxable dividend. Shoppers are still in a recession mindset, so they are still flocking to discount retailers.Family Dollar Stores, Inc. is one of the fastest growing discount store chains in the United States. The merchandising concept responsible for this growth provides consumers with good values in low cost, basic merchandise for family and home needs. The merchandise is sold at everyday low prices in a no frills, low overhead, self-service environment. Most merchandise is priced under $10.00. Stores generally range in size from 6,000 to 8,000 square feet and most are operated under leases.Complete Story »
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