Investors were euphoric when Dollar General brought back its former CEO less than a year after his retirement. A sober look at the situation reveals significant concerns.
I am a recent subscriber and I appreciate your posts on DG. I hope you continue to evaluate this and other companies in similar ways because I find them enlightening and educational. Perhaps Pfizer next?
In my earlier paid newsletter offering I covered one company per month (those profiles are still available at https://rationalwalk.substack.com/p/business-profile-library). However, when I restarted a paid offering in April, I decided not to include regular profiles for a few reasons. It ended up being a more than full time effort and the price I had set wasn't sufficient to justify it. But while I am no longer producing the in-depth profiles, I still write about Berkshire Hathaway and certain other companies. It really depends on what I come across.
At a mid-teens multiple of current fiscal year guidance, it doesn't seem like the shares are all that cheap, except relative to historical multiples. Retail is very difficult and it is hard to tell whether recent problems can be reversed. The governance issues are a big concern for me.
It will be interesting to see what the upcoming batch of 13-Fs of well known investors reveal, although the positions will be as of 9/30, before the management change.
I am a recent subscriber and I appreciate your posts on DG. I hope you continue to evaluate this and other companies in similar ways because I find them enlightening and educational. Perhaps Pfizer next?
In my earlier paid newsletter offering I covered one company per month (those profiles are still available at https://rationalwalk.substack.com/p/business-profile-library). However, when I restarted a paid offering in April, I decided not to include regular profiles for a few reasons. It ended up being a more than full time effort and the price I had set wasn't sufficient to justify it. But while I am no longer producing the in-depth profiles, I still write about Berkshire Hathaway and certain other companies. It really depends on what I come across.
Too hard for me. There are just too many examples similar to DG where the misery factor (for shareholders) isn't equivalent to the potential payoff.
At a mid-teens multiple of current fiscal year guidance, it doesn't seem like the shares are all that cheap, except relative to historical multiples. Retail is very difficult and it is hard to tell whether recent problems can be reversed. The governance issues are a big concern for me.
It will be interesting to see what the upcoming batch of 13-Fs of well known investors reveal, although the positions will be as of 9/30, before the management change.