Dollar Tree Stores, Inc. (NASDAQ:DLTR)

CAPS Rating: 3 out of 5

The Company operates discount variety stores offering merchandise at the fixed price of $1.00. The Company maintains a broad selection of products within traditional variety store categories.

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Player Avatar dcrednek (79.95) Submitted: 2/20/2013 5:07:47 PM : Outperform Start Price: $40.25 DLTR Score: +19.34

Should have picked this one back in 2009/2010. Better late than never. DLTR is around $40, well off its 52-week high around $56.80. Cash is almost equal to Total Debt, so the business could de-lever tomorrow should rates begin to rise (and increase their cost of capital). Free cash flow is approximately 5% of stock price right now. Company has grown at 15+% rate the past few years, expected to slow to 10-12% going forward. Value investor Chuck Akre at Akre Capital has recently increased his fund's position (to around 6.5% of portfolio value).

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