Nordstrom, Inc. (JWN)

finviz.com

from WF Advisors Focus Portfolio from 7/28/09
5yr EPS CAGR > 10%

going long term on Nordstrom. Solid Co., great dividend, volatile price I see in the short term though. Sell at $30-35

No one can top them when it comes to customer service.

GREAT STOCK

The worst is over. It's time for the Fat Cats to get all pretty again.

Will come out of the recession in much better position than competition.

a good company

dividend of 5% with payout of only 35%

Everyone wants to shop here

This CAPS account is tracking the 200 highest yielding S&P stocks.

At $11.74, this stock is oversold and will be a good investment from 2008-2012.

Trading at 5x-6x earnings and still great potential growth. Have been stealing market share from Macy's and JCP for years. May be hurt by a weaker consumer, however they have a more inelastic demand than lower-level department stores.

Even if earnings dissapoint in the next few quarters, driving down equity price will look foward to contiuned growth oppertunities once the consumer comes back to life.

Hold equity position as well as out of the money leap-calls.

This is one company that understands customer service and has taken it to a different level. They do have exposure to California and that will hurt their typical consumer. That said, with around 109 full service stores (plus 50 Rack stores) they've got plenty of room for expansion. I expect this well capitalized, well run company to expand during this downturn. When things do recover I expect they will lead the way. In the meantime, take the dividend and just sit back and wait. In 3 years you'll be happy you bought at this price.

this stock has been very good to me over the long haul (12 yrs - up 236% in that time.) Their service is amazing with quality stock. It's cheap right now imo.

I have have a long term relationship with his stock and went through two stock splits with them. This current market cycle is only a "little bug"

A little beaten down. Maybe time to get back in.

Nordstrom is a luxury department store best known for its superior customer service. The company was incorporated in 1946 after being a shoe business staring in 1901 and is still run by many Nordstrom family members, with 25.6% of its stock owned by insiders. Nordstrom’s’ key selling point is the value of its brand name. Nordstrom stands for legendary customer service and never forgets its customer is #1. It’s been so successful catering to its shoppers, a book has been written about their successful strategy. For example, a personal shopper is available for each customer without a minimum purchase, a concierge will hold shopper’s bags and stores hold customer appreciation events. The customer service is so incredible, a rumor that an employee once allowed a customer to return a set of tires even though Nordstrom has never sold tires.

Other key characteristics that make Nordstrom a compelling investment idea:

• Has been growing its margins steadily over the years and boasts gross and net margins far better than direct rivals Niemen Marcus, Saks, Dillard’s and more economical department store competitors J.C. Penny and Macy’s
• Operates a perpetual inventory system that enables quick reactions to customer feedback from the sales floor to ensure they aren’t left with stale products on the floor
• Despite the slowing economy and inventory build-ups many retailers have faced, Nordstrom has decreased its inventory levels in the past two years even as sales have remained slightly positive.
• Management aims to keep low cash reserve on balance sheet to enhance shareholder return and has increased its dividend each year in the past six years and has been buying back shares for the last three years.
• Nordstrom has averaged a trailing P/E ratio of 22 since 2001 but due to the major consumer slowdown and current weakened economy, the stock has slid to selling at just 10.2 times the last 12 months earnings and now trades with a 2.2% dividend yield.

The company’s high end clientele restrains Nordstrom’s growth to wealthier areas. However, with just 157 stores all located here in the U.S., the company does have considerable opportunity to expand its stores base. Management anticipates growing its store count by 20% in the next five years. Nordstrom’s potential growth particularly lies in many areas in the U.S. that are being renovated where contractors desire an upscale department stores to lure customers into newly developed shopping centers.

With many investors terribly bearish on the consumer outlook in the near term, the company’s near 40% drop over the past year provides a great entry point for a long term investment when the economy rebounds.

I decided to create a portfolio with only products or services that I use without regard to price/value in order to compare with my own personal port