I hope everyone had a terrific Fourth of July weekend. Today, we have to be excited to see the market returning to normalcy despite an actually poor day of economic news once again. We have been on quite a roll throughout the last month, and I am working hard on a June update that will have our updated portfolios, statistics, and other information.
That will hopefully be done today or tomorrow. I am still traveling today back to Chicago, so we will have to see.
The market’s tremendous turnaround has given me some hope that we can right this thing and avoid the terrible double dip, and so, I have a nice Day to Overnight Trade for us to complement the excitement in the market. The chart on the right is also a very great bull sign from the venture capital market.
Overnight Trade of the Day: Family Dollar Stores Inc. (FDO)
Analysis: One of my favorite recessionary group of stocks is the value retail stores from the dollar stores, to the bulk stores, to the closeout retailers. The likes of Big Lots, Dollar Tree, Dollar General, Casey’s, and Costco have all seen some tremendous growth despite the slowdown of the major economy. One such company that has been my favorite through it all has been Family Dollar (FDO). This company has seen its revenue grow from $6.8 billion in 2007 to $7.8 billion expected for this year even though the economy was on slow down since then.
The company has been able to truly become a major household name and is not viewed in the same way. For the coming years, Americans are still going to be very wallet conscience. Unemployment is showing no signs of a quick recovery, and things are still taking a long time to return to normalcy. There is no reason but to expect Family Dollar to continue its strength. Tomorrow morning, the company will attempt to continue the successes it has over the past three years with its Q2 2010 earnings from March – May. The company is expected to report EPS at 0.76. This will be a 20% increase in profits over one year ago.
The company actually released their sales for the past quarter already, hitting $1.99 billion in revenue for the second quarter. These estimates were in the range of $1.98 – $2.02 billion that analysts were expecting for sales. That revenue is an 8.4% growth from…
