Invite ye felawes and frendes desirous in gold to enter the gates of Shrewd'm, for they will thanke ye later.
- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 5
DG seems to have bottomed, for now. Its even up quite a bit from the low of 101, and showing strength on a day like today
Would appear that all of the sellers who might have sold have already done so.
At least or until we see more tax loss selling if folks ddecide to cut some long term winners like the mag7 and need to balance their gains
Just an observation as Board has been quiet recently
No. of Recommendations: 8
Who knows if $101/share will turn out to be the bottom, but even at today's $120 share price, i.e. $26b market cap, with earnings of $2.6b, $2.4b and $2.4b in the previous 3 years, and probably about $2.1 or $2.2b in this really bad year for them, so about 12 times earnings, time is probably on the side of value investors, and it could well be that the weak hands have already sold and that time is now on our side.
Third quarter finishes in a few days, and so we should get the report in about 5 weeks or so. That might be another chance for testing that $101, we'll see soon. Hard to believe it was at $261 a year ago!
dtb
No. of Recommendations: 4
I too am waiting for the 3Q report, which I expect to be a 'kitchen sink' quarter. As is usual in these cases the new CEO will try to get all the bad news out and take huge restructuring charges. And set easy comps to beat next year.
After the subsequent sell off from the news, analyst price target cuts and tax loss selling, DG should hit bottom just before the year end. I know it is foolish to predict short term price movements, but I already have a significant holding, so can afford to miss out, if price takes off after earnings.
No. of Recommendations: 3
"I too am waiting for the 3Q report, which I expect to be a 'kitchen sink' quarter. As is usual in these cases the new CEO will try to get all the bad news out and take huge restructuring charges. And set easy comps to beat next year."
My thinking as well. I picked some up at 107. I like the new CEO and the economy will pick up as it is an election year. I will hold for a while and see what happens.
abromber
