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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: gcrispin who wrote (29316)	12/18/2007 11:10:54 PM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78742

I keep tabs on ROST. It's a buy if they can maintain their 20% ROE. Which I would not be sure about. I guess that's really an issue with retail stocks. Apart for WMT and Costco that are low price high volume leaders, it's very tough to figure out how companies can maintain high ROEs. At least something like CWTR or CHS or TLB have brands that may be worth something. ROST? ROST is not a brand. It's the same as TJ Max or Marshall's or whatever other closeout discounter you take. It's probably better managed but that's it. And BTW your anecdote does not show how Ross makes profit. Sure, they sold the same item as Macy's for cheaper, but it's a closeout store, so that should be the case anyway: you don't get selection there (at least for clothes) but you get good prices. The question is how can they make the margins and sales in the closeout store world. Which they can for now as we see from numbers. Disclosure: Holding CHS and TLB, no positions in others mentioned. I do shop at stores mentioned above occasionally. For cheap, since I am value investor. ;)