Buying in Dip Picks - Discount Variety Stores

Wednesday, 13 May 2009 15:03 by synergize

This morning the U.S. Census Bureau announced that April retail sales declined 0.4% vs. expectations of 0.0%; retail sales (ex-auto) declined 0.5% vs. expectations of +0.2%. March retail sales were revised lower. Consumers are saving more, reducing debt and trading down to cheaper substitutes. These trends are going to be with us long after the economy has stabilized and begins to grow again. Big names (Walmart and Costco) and small discount/dollar stores(Big Lots, Family Dollar, 99 Cents, etc) will continue to benefit from consumers becoming more frugal and saving more. Buying in dip look for industries that are oversold and stocks that are in long-term uptrend but are in dip or oversold. Oversold is determined using Stochastics. Click here for latest quotes.

Symbol Company Exch. Industry TI MS UG DG IT
WMT Wal-Mart Stores, Inc. NYSE Discount, Variety Stores          
COST Costco Wholesale Corp. NASD Discount, Variety Stores     0 1 0
NDN 99 Cents Only Stores NYSE Discount, Variety Stores          
FDO Family Dollar Stores, Inc. NYSE Discount, Variety Stores          
BIG Big Lots, Inc. NYSE Discount, Variety Stores     1 0 0
FRED Freds, Inc. NASD Discount, Variety Stores          
TUES Tuesday Morning Corp. NASD Discount, Variety Stores          
TGT Target Corp. NYSE Discount, Variety Stores     1 0 0
DLTR Dollar Tree, Inc. NASD Discount, Variety Stores          
BJ BJs Wholesale Club Inc. NYSE Discount, Variety Stores          
PSMT PriceSmart, Inc. NASD Discount, Variety Stores          

UG,DG & IT are number of upgrades, downgrades or initiated recommendations from institutions for the past 60 days. Buying in dip picks is published weekly

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On 8/19/2009, the United States economy is out of the emergency room and appears to be on a slow path to recovery, Warren Buffett wrote in an opinion column in the New York Times.
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Finance Quote of the Day

The fact that equities are being sold down, despite the lowest interest rates in recent history, simply means that the market doesn't see growth ahead for very many businesses. - John Malone