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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (17539)8/8/2003 12:52:57 AM
From: Spekulatius  Read Replies (1) of 78986
 
Re: Costco -
I agree with you that Costco is neither a growth nor a value stock. PE is about 20 now. I have it on my radar screen but I do not on the stock. I would become interested when it falls to 25$.

I don't think the business model is broke. Costco is the price leader in most categories it chooses to compete and despite having one of the lowest growth margins in the retail sector (<20%), the company is fairly profitable. The Internet may be a threat in some categories (electronics, jewellery) but who orders a rug, a pair of jeans,a case of beer or a refrigerator over the internet? I am member and for me as a single person it pays off - a family without doubt will get back the membership fees many times.
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