Post #124 by kelbon on the Falling Knives board

Investment Strategies / Falling Knives

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No. of Recommendations: 7

For what it's worth Value Line runs a growth portfolio (The Aggressive Growth Model Portfolio).
Until this week DG was a component, but now they have dropped it, because:

We are also exiting our position in Dollar General, a dollar discount store. First-quarter same-store sales growth came in below expectations and management cut the revenue outlook for the year. The stock was down close to 20% on the day of the announcement. Dollar General appears to be losing market share to retail giant Wal-Mart and another dollar discount store, Dollar Tree. Pricing ought to remain competitive, as the macroeconomic environment puts pressure on the lower-income consumer. The company also does not plan to repurchase shares this year, which is a signal that there may well be more downside for the equity, in our view.

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