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The stock is on a downward trend over the past several months, and in California, there is a bill pending the Governor's signature which would essentially, according to the CEO of Costco, proscribe them from building any further stores in CA. I bought in several months ago after going to their new store in Culver City, but I did not anticipate the political backlash. After all, why would the politicians want to raise the cost of goods for all Californians, by legislative fiat. They believe they can get more money and votes out of the Safeways, and Unions, apparently. Once Californians understand that they are paying more for a political vision of some narrowly focused legislators, this will of course change, but by then the 85 new stores planned for CA may well be history. Maybe the governor won't sign it, but he is a democrat very closely aligned with the Unions. We live in interesting times. I don't know why none of this was considered by the Boring portfolio folks--perhaps because it isn't boring, but their pick doesn't appear timely either. Nor well researched. For the Motley Fools, which I disticntly do not follow as being too elementary, --remember Iomega. |
