Subject: FKA: DG
Dollar General at $123. Dividend yield a hair under 2%.

I like DG. It seems nobody else does.
One of my only two blog posts : ) https://mungofitch.com/

I mention it now because of a rarity: the stock price has been doing terribly for a long time, but for the last week it has been doing a bit better than the average large cap. Eventually there may be a bottom in the price cycle, and it would look like this at the beginning, so hey, it could be a good entry.

I am underwater, but I don't worry about that too much. These companies have a very long history of very wild price swings every couple of years, which is one reason I like jumping in and out of them cyclically, so this may just be another one. One should never take merely a low price as a sign that something is truly and permanently wrong, especially in this group. If there are other reasons to think there is serious trouble, well, that's a different story.

It is my hopeful expectation that they will return to a profitability level somewhat similar to the old norm, and that it will be a good investment from here. I even have a price target, $220, with (alas) no associated time frame. Soon enough that the annualized rate of return will be interesting. Say, earnings $10-12 on a multiple of 18-21?? Maybe I'm wrong, but hey, at least I'm calling my shots. It's one of my largest positions.

Jim