The TJX Companies, Inc. (TJX)

edwinaanne (93.24) Submitted: 1/28/08 11:18 PM : Start Price: $31.45 TJX Score: -3.60

PARENT COMPNY OF TJ MAX, MARSHALLS


JIM CRAMER: RETAILER THAT WILL MAKE MONEY WHETHER FED SAVES THE DAY OR NOT. MASTERS OF THE TRADE-DOWN RETAIL, CHICKEN LITTLE PLAY


IT'S BLESSED TWICE BECAUSE AS A DISCOUNT PLAYER, IT WILL THRIVE! IF THINGS DON'T TURN UP THANKS TO IT'S LEADERSHIP, A BIG RETAIL TURNAROUND IS ALSO A WIN, WHEN THE MARKET GOES HAYWIRE. IT'S A GOOD WAY TO EXPOSE YOURSELF TO RETAIL WITHOUT TAKING ON A LOT OF RISK OF THE HIGH-END,NON-DISCOUNT GUYS.WE KNOW WHAT'S HAPPENED TO COAH, TIFFANY. THERE A MANY DISCOUNTERS BUT TJX IS DIFFERENT. PART IS THE BUSINESS MODEL, PART IS THEIR BRILLIANT CEO, CAROL MEYROWITZ, WHO TOOK OVER A YR AGO.TRANSFORMATIONAL CEO TJX DELIVERED MORE THAN ANY OTHER RETAILER IN U.S. LAST YR.


SALES: RISE IN DEC SAME-STORE SALES OTHERS FELL APART 3% ABOVE TR AGO RAISED 4 QTR GUIDANCE,REPORTED 3 Q08 NET INCOME $249M


VS $230M YR AGO, STARTED TAKING SHARE FROM HIGH-END CHAINS AS PEOPLE TRY TO SAVE BUYERS DEFECTED DURING SLOWDOWN HAVE UNDERARMOUR $39 SHIRT FOR $20 GREAT AT CONTROLLING COSTS,INVENTORY,LOW PRICES,ADDED ADVANTAGE HAVING WHAT PEOPLE WANT TO BUY. HAS CASH TO BUY CLOSED-OUT MERCHANDISE,TURNAROUND AND SELL IT AT DISCOUNT PRICES HAVE GREAT BRANDS 29 OUT OF 30 YRS POSITIVE ANNUAL SAME-STORE SALES GAINS IT WON'T LOOSE IF ECONOMY GETS BETTER GREAT AT CUSTOMER RETENTION


BUYBACKS: $650M WORTH THIS YR PLANS FOR $250M BY END OF JAN, ANOTHER RELOAD


3Q OP NET SALES FROM CONTINUING OPERATIONS $4.7B 6% INCREASE YR-OVER-YR


STOCK: TRADES AT ONLY 13XS 08 CONSENSUS EARNINGS ESTIMATE VERY LOW END OF IT'S HISTORICAL RANGE.STOCK YOU WANT TO OWN DURING ECONOMIC WEAKNESS. GOT 12% GAIN IF STOCK PRICE GOES TO AVERAGE; 36% GAIN IF THE STOCK TRADES BACK TO THE HIGHER END. LOOKS VERY CHEAP BASED ON EARNINGS, HISTORICAL RANGE.


COMPANY: GOING TOO STRONG FOR THE STOCK TO STAY DOWN HERE. REAL STANDOUT COMPANY.


TJX HAS PROVEN THAT IT WORKS. BUY

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