Post #365 by Knighted on the Falling Knives board

Investment Strategies / Falling Knives

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Yeah, I'm going to start back in with a little Dollar Tree. Another cycle starts.

Jim, could you share your thoughts on why you're purchasing DLTR instead of adding more to DG given how further depressed its price has become after the earnings release?

My line of thought was that the risk of DG failing to turnaround in the near future would likely be a damning indication of struggles with the dollar store business model as a whole.

In that event, if dollar stores turned around, DG would likely have the most to gain. And if dollar stores don't turn around, DLTR is likely to suffer the same fate as DG, with potentially more room to fall since it's not trading at as steep of a discount.

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