aDECEMBER 18, 2008 (Dow 8605, down 219) - Bush's indecision regarding the auto bailout snd the potential ratings downgrade of GE's debt hurt the market today. Sharp moves down in oil contributed to fears of a deepening global recession. The chemicals are the biggest beneficiaries of lower oil prices. The newspaper stocks are toxic.
as the economy slows more people will be shopping at the "dollar stores" - the Street has low expectations for the stock (9 neutrals, 2 sells) so there is a better chance of upgrades - FDO did well in the 2000-2002 recession (up 38%, 40% & 7% respectively) - co is focused on improving operating efficiencies & better product mix (towards more food & less discretionay items) - stores are now taking credit cards & food stamps - beat the numbers when it reported on Oct 3rd - see multiple expansion as the co continues to beat earnings estimates - it's the ultimate trade down play
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