99 Cents Only Stores (NYSE:NDN)
The Company is an extreme value retailer of consumable general merchandise with an emphasis on name-brand products.
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Key factor 99cents folks. Pops says it don't take no genus to see this one's gone work,Ha!Ha!
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Texas comparative sales growth continues to improve. Although Texas continues to be a drag, the company is seeing progress in terms of store productivity with several initiatives underway to improve the stores and distribution center. Texas same-store-sales continued to benefit primarily from operational improvements and positive word of mouth. The company opened five new stores in Texas in late fiscal 2007, with the San Antonio store showing expected results.
NDN is focused on improving ordering and allocation processes emphasizing higher margin merchandise and enhanced systems to reduce spoilage and shrinkage. In addition,
there exists incremental opportunities through more direct imports, reduced inventory reserves and increased focus on maximizing gross margin dollars per square foot through refining mix, in-store marketing and product placement.
Management plans to continue to drive comps through improved execution, merchandising, and marketing. Several store openings were tested by management in fiscal 2007 and is pleased with the results. NDN is accelerating total store growth in fiscal 2008 to 15%, up from present 8.2%. By fiscal 2009 and 2010, the company plans to continue to open stores at a rate of approximately 15% per year as it expands into new markets as part of its long term mission to become America’s favorite and best run extreme-value store.
NDN has made progress with regards to fulfillment rates and on-time store deliveries. The High Jump warehouse management system continues to be implemented in stages. The company has begun to implement real-time inventory tracking and transaction controls at the stores and distribution centers. Considering the above factors, the shares of NDN are expected to shine among other discount chains.
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Wall Street Pro Pick.
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a real steal at this price
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NDN in order to succed must stop new store growth and focus on growing existing stores and developing better investor relations. This would mean a mager change in the compay business plan.
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undervalued small cap on an up move
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Volatile. Follow it to buy low, sell high or vice versa.
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