Have a Costco (COST) Christmas

Posted September 3, 2008

"Costco Wholesale Corp., the biggest U.S. warehouse club, may have its best holiday-shopping season since going public 23 years ago because most U.S. retailers are preparing to have their worst since 1979." — Mark Clothier and Lauren Coleman-Lochner, Bloomberg

Blogger’s note: TFN President J. Christoph Amberger hates to say, "I told you so,"… Oh, who am I kidding? Christoph loves to say "I told you so." He relishes the opportunity. But that’s beside the point, which is that the Costco Wholesale (COST:NASDAQ) recommendation he made early this year (once in February and again in March) may soon be kicking into high gear.

But you don’t have to take my (or his) word for it. Mark Clothier and Lauren Coleman-Lochner at Bloomberg will tell you all you need to know about Costco’s tremendous upcoming holiday season.

by Mark Clothier and Lauren Coleman-Lochner, Bloomberg

Baltimore — (TFN): Costco Wholesale Corp., the biggest U.S. warehouse club, may have its best holiday-shopping season since going public 23 years ago because most U.S. retailers are preparing to have their worst since 1979.

As Costco snags higher-end shoppers from retail rivals, investors aren’t giving the discounter’s share price the same bounce as Wal-Mart Stores Inc., up 25 percent in trading this year. Costco is down 4 percent, even as most of its biggest holders have boosted their stakes.

Over the next 12 months, that will change with the warehouse chain likely to outperform the world’s largest retailer, gaining 27 percent to $85 a share, according to estimates by Edward Weller, a ThinkPanmure LLC analyst in San Francisco. A surge in the stock would follow an historical relationship between the two chains’ shares, based on data compiled by Bloomberg. Costco lagged behind run-ups in Wal-Mart at least four times in the past four years before rallying to surpass it. Read on to learn more.

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Posted by TFN-US · Filed Under US Stocks and Markets

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sayahfrites 2 months ago 1 point
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