99 Cents Only Stores (NYSE: NDN) is set to report earnings on Wednesday. We still want to know if the trap of Family Dollar Stores Inc. (NYSE: FDO) will come into play here or not, but it is important to realize that 99 Cents Only is going private and that it was often considered the least healthy of the big public dollar store chains. Th real tell is not just for the company but for how it will impact Dollar General Corporation (NYSE: DG) and Dollar Tree, Inc. (NASDAQ: DLTR).
Does it matter that Berkshire Hathaway Inc. (NYSE: BRK-A) bought shares of Dollar General Corporation (NYSE: DG)? Chances are, Todd Combs did not just buy that stock with the understanding that things were peaking now. He probably sees the same secular trend we see happening.
In some cases, it is easy to argue some of the same similarities that the dollar store segment today is in the same place that Wal-Mart Stores Inc. (NYSE: WMT) was in during the 1990s.
Estimates from Thomson Reuters for 99 Cents Only ar $0.41 EPS on sales of $393 million.
JON C. OGG
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