Q: Merry Christmas to the 5i Team! My question is about consumer discretionary stocks. It's one of the areas in my portfolio that i lack exposure in (0% to be honest). I've been looking at ATD-B for a while and feel comfortable adding at the current price level. To get some more high quality names I've looked to the US and come across the usual suspects that seem fairly highly priced/valued. I've been looking at ULTA and COST. Might not be your area of expertise but your thoughts on these 2 companies or any other specific names you think are worth owning in the Cons Disc space?
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Investment Q&A
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Q: Why there has been SIGNIFICANT drops of 2 above stocks recently.?Thank you.ebrahim
Q: Hi Peter and 5i team
I put some bids in on Costco 18 months ago and never got the stock. I gave up chasing it as I hate paying >25 earnings on a stock. BUT.....
Costco seems to be doing everything right. We all know their retail store is about as good as it gets. What is attracting me now is their online potential. I have been purchasing goods from them online and the process has been excellent. Their shipping costs are built into the price and so appear to the customer as "free". Of coursebthey are not but this is good marketing. Just think there is lots of room to grow there. Plus it is always easy to return things to a costco store.
They are trading at 28x earnings. Is that just too rich for the stock? AMZN afterall dies trade at 300+ x earnings. Should I hope for a pullback?
I am well diversified and have almost no retail or consumer stocks, except QSR
Thanks
John
I put some bids in on Costco 18 months ago and never got the stock. I gave up chasing it as I hate paying >25 earnings on a stock. BUT.....
Costco seems to be doing everything right. We all know their retail store is about as good as it gets. What is attracting me now is their online potential. I have been purchasing goods from them online and the process has been excellent. Their shipping costs are built into the price and so appear to the customer as "free". Of coursebthey are not but this is good marketing. Just think there is lots of room to grow there. Plus it is always easy to return things to a costco store.
They are trading at 28x earnings. Is that just too rich for the stock? AMZN afterall dies trade at 300+ x earnings. Should I hope for a pullback?
I am well diversified and have almost no retail or consumer stocks, except QSR
Thanks
John
Q: Hi Peter
One of the first books I read on investing was "One Up on Wall Street" by Peter Lynch. Of course, he advocated doing things such as going to mall and observe which stores were busy.
In that vein, I keep thinking of Costco as every time I go to one of their stores all I see is a steady stream of people going through the registers.
I don't think there is a COST question on the site and I simply just wanted your thoughts on this company. As I read through their Edgar filings, it just seems that this stock is ridiculously expensive. Is this just a great company but a lousy stock?
Thank you
One of the first books I read on investing was "One Up on Wall Street" by Peter Lynch. Of course, he advocated doing things such as going to mall and observe which stores were busy.
In that vein, I keep thinking of Costco as every time I go to one of their stores all I see is a steady stream of people going through the registers.
I don't think there is a COST question on the site and I simply just wanted your thoughts on this company. As I read through their Edgar filings, it just seems that this stock is ridiculously expensive. Is this just a great company but a lousy stock?
Thank you