Costco Wholesale Corp (COST)

What can I say? I just flat-out LIKE this company and its prospects. I like the way Jim Sinegal runs Costco. I like how the company treats its employees. And I like the way it's branded itself into a more upscale Sam's Club -- warehouse style with a bit more class (at least in theory!). Costco, at least at present, is run with a balance of prudence and risk-taking that I think will serve it well.

From the products it chooses to carry to the way it pays it's employees, Costco seems to be one of the few companies that knows that what is less expensive in the short term doesn't necessarily translate into value down the road.

One of the few companies that has figured out how to beat Walmart in its segment (vs. Sam's Club). I read where the CEO doesn't give 2 cents about what Wall Street thinks. He knows what needs to be done for the long term and he keeps doing it. As long as this guy is in charge, I will have a Buy rating on this stock.

I don't care if it's not as ruthless as Wal-Mart in squeezing suppliers and employees for every last penny. Costco's a well-run company with consistently terrific performance, its management is by all accounts both sensible and humble, and it treats both its customers and its employees admirably well. What can I say? I'm a sucker for companies that do well by doing good.

Great products at reasonable prices. I like that while Costco is a warehouse discounter, it often provides higher end merchandise (think treasure hunt, since the merchandise is in limited supply) and it attracts a nice, diverse demographic. Its bargain prices insulate it from hard economic times. I also like that Costco management focuses on building a good, solid long-term business and treats its employees very well (explaining its impressive low turnaround of workers). Great company for the long term.

I'm going out on a limb in saying that people will rediscover buying warehouse style for the next couple years or so. Bulk = the perception of savings. I'm hearing of "Warehouse Store" collectives where people pool together and buy as a group in order to save.

This seems like a good thing for COST.

Their formula works better that Walmart. There is never any opposition to opening one of their stores. They pay their people well and they have good quality people. I have shopped in their stores all over the West and in Mexico. I remember the Mexico Costco as having a packed parking lot and how we had to drive around for half an hour just to find a spot. They seem to be expanding worldwide. Jim Sinegal is the most underpaid CEO in the world.

I am a manager at Costco, and have been with them for over twenty years. We are just tapping into the depths. Long term it is nothing but a golden highways. I have been watching the trends for a # of years and if you ride the ups - sell and repurchase you can see 20 -27% gains yearly. We are like a time clock, we work around seasons. Also I predict 67+ by July 2007.

Best source for cheap diapers.

here we are in a new economy - within a deleveraging landscape. these companies are the biggest & baddest that have beaten the S&P 500, however, upon closer look these companies valuations appear too high, future growth is constricted by debt levels, and already have pretty high institutional ownership for its size.
this stock will not double in the next 5 years...but if it does, thats bcuz most of the other stocks in your portfolio have tripled or done much better during that time frame.
SHORT PG, COST, WMT

Solid company with great management team. Next to no marketing, yet an amazing following amongst its customers. Recent changes to their return policy should lessen abuse by customers, while still being one of the best return policies in retail - which can only help shareholders. On top of it all they can continue to push for higher minimum wages, which will impact their competitors that don't pay the above average wages Costco provides its employees. Buy, buy, buy!!

Costco's number one objective is to satisfy the members which are their consumers. When Bank of American started focusing on the customer the bank changed from 1989 to present. They are cost efficient, pay their employees a decent wage, give the employee good working conditions, respect the employee and the customer which translates into a decent profit for the shareholders. This separates them from Walmart. Local governments will work with Costco because of the positive experience they bring to the local economy.

I love this store! I go once a month and have bought the full range of products. I trust their Kirkland brand to be high quality. Generic brands normally scare me, but Kirkland is the exception. I have bought appliances, tires, furniture, jewelry, computers, gas and the normal household goods. I can not think of a bad experience with their products. Also, I feel good as a customer that they treat their employees well. Where else can you buy $11 worth of TP and a $2,000 flat screen TV in one stop?

Invest in what you know and understand why they are successful.

Costco Wholesale Corporation operates membership warehouses in a range of merchandise categories. The company's merchandise selection is designed for business and consumer members, and offers a range of nationally branded and selected private-label products. It has two primary types of members: Business and Gold Star (individual) members.

The company has superior brand equity in the U.S. market and ranks 28th in the Fortune 500 list. The company’s brand equity has helped boost its sales. Moreover, the company’s leading market position provides it with higher discount scales from the manufacturers.

Costco’s inventory turnover rate is one of highest in the industry. From 2001 to 2005, the company’s inventory turnover was over 11.5, much higher as compared to its competitors. High inventory turnover along with lower markups gives Costco an edge over its competitors.

The company provides a comprehensive range of its products to customers through its online web portal. Online sales have steadily gained popularity in the U.S. Online retail sales in the U.S. are expected to reach $130 billion by 2006 and are expected to grow annually by 17% through 2008. The positive outlook in the U.S. online and catalogue retail market is expected to boost the company’s revenues.

Furthermore, with the rise in home improvement expenditures and expanding electronic equipment market, Costco would see an increase in the demand for its domestic merchandise, home furnishings, and electronic and appliances segments. In addition to all this and with increase in year-on-year sales along with comparable stores sales increase, Costco is well set for a rise.

Every time I walk into a Costco I end up buying a bunch of crap I never knew I needed. From the looks of everyone else's shopping carts they are doing the same. Costco must be doing something right and I have the 0 balance checking account to prove it.

Place is always packed and I suspect any short-term problem with profit margins could be solved with small price or membership fee tweaks. I'd certainly be willing to pay more to never have to set foot in Wal-Mart again.

In contrast to the Walmarts of the world, who generally sell cheap stuff at low prices (produced mostly by screwing their own employees and suppliers), Costco sells upmarket high quality merchandise (which most sellers mark up a much higher percent than the cheap stuff). Costco marks it up much less, leading to a real bargain for upmarket buyers. They make up for the lower markup with higher volume, and, as a regular customer, I can assure you the volume of happy buyers is consistently high. All this while also keeping happy, well paid, and well treated employees and suppliers. I'm one who believes this sort of corporate behavior makes winners, and the stock will reflect this, leading to happy investors.

I bought it at $56.91 with limit order. Some desperate panic seller sold with a market order.

Excellent retailer that has room to grow and expand, well managed.

I have been a member of Costco for 9 years and finally bought the stock. The executive membership is $100 e year that I get back after spending $400 a month (2% X $400 x12=$96). I actually got a $126 coupon. Basically, it cost $0 to join and save a lot on groceries, clothing, Christmas gifts, etc.

Costco sells high quality products at low prices.
With consumer slowing spending, they will shop more and more at price clubs like Costco.

When Fed starts lowering the Fed Funds rate on Sep 18 and after, great retailer stocks like Costco will go up. Another reason to buy it.

Love this company.

Let me say it again, I Love this company.

But, the price is out of touch with reality. It takes time; lot's of time to identify candidate sites for stores, purchase the land, and get the building in the ground and operating.

At its current size, Costco cannot perform to its multiple.

I was in it at 22 and out at 45, two years later. And later on, I was in it again; this time at 28, and out of it at 58 last year.

I think the price that works is 32...