Dollar Tree (dltr) Stock Research
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Company Description: Dollar Tree, Inc., founded in 1986, and its subsidiaries operate roughly 3,474 discount variety retail stores in 48 states (as of 2008). All Dollar Tree, Inc., stores, including Dollar Tree, Deal$, and Dollar Bills, offer merchandise at the price of $1.00, including consumable products like household chemicals, paper products, candy, food, and health and beauty products; assorted variety merchandise such as toys, housewares, greeting cards, and party supplies; and seasonal goods. Dollar Trees company headquarters are located in Chesapeake, Virginia. Update
Discretionary Industry Analysis: The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Discretionary Trading Strategy: The consumer discretionary industry tends to be very sensitive to economic cycles. Look for undervalued discretionary investments during economic recessions when stock prices are low and sell discretionary investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase consumer discretionary investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Industry Sub Sector: Public Sector. Dollar Tree is a dominant industry leader due to its personnel, experience and financial strengths. Industry leaders are difficult to compete against, which decreases business and investor risks.
Market Challenges: Opportunities: Solutions:
Dollar Tree possesses significant barriers to entry that slows competitive threats and increases profits. A culture that experiments produces better long term value. Dollar Tree's experimentations yield new products and services that outpace competitive threats.
Strategy: Dollar Tree's strategy focus on winning more market share of price-sensitive customers by having the lowest priced products and services. (read more). Competitive Advantages:
Complicated financial statements lower Dollar Tree's value, because it increases the risk of fraud and lowers investor confidence.
Current Revenue Sources: Future Revenue Sources: