Dollar Stores Look Like Bargains Again

If you want proof that Mr. Market operates with very little temperament, look no further than what has happened to the share prices of the deep discount retailers, which are also known as dollar stores. Six months ago, shares in dollar stores were climbing to new highs. Today, shares have fallen back 20% to 40% as market enthusiasm for this retail category has quickly cooled off .

You can point to the usual suspects to understand the share decline: continued competition from Wal-Mart (WMT), an improving economy and concerns that dollar stores are reaching over-saturation in the U.S. These concerns, if accurate, would undoubtedly restrict growth, and that is why these shares are selling off....389 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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