PriceSmart’s
Lackluster Quarter
Why Wall Street Isn’t Happy
While PriceSmart met earnings expectations, it
missed on revenue and has shown a steady declin...
Steady Decrease in Same-Store Sales
Why the Drop?
1. Management has stated that the opening of
new stores in Costa Rica and Honduras were
going to shrink same...
A Buying Opportunity?
PriceSmart’s P/E Hasn’t Been This Low Since Mid-2011
The Bullish Argument
There are two key things to keep in mind:
1. The real growth story comes from opening up
stores in So...
What to Beware Of
If they only grow
at 1% per year, this
stock isn’t worth
28 times trailing
earnings.
Same-Store Sales
While I think PriceSmart is worth looking into right now, it's
important to remember that lots of American companies have
...
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Why PriceSmart Might Finally be a Buy

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The Latin American wholesaler has fallen on tough times, but that could be a good thing for investors.

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Why PriceSmart Might Finally be a Buy

  1. 1. PriceSmart’s Lackluster Quarter
  2. 2. Why Wall Street Isn’t Happy While PriceSmart met earnings expectations, it missed on revenue and has shown a steady decline in same-store sales.
  3. 3. Steady Decrease in Same-Store Sales
  4. 4. Why the Drop? 1. Management has stated that the opening of new stores in Costa Rica and Honduras were going to shrink same-store sales while boosting overall sales. This was because the new stores would cannibalize the older stores. 2. The company has produced years of high single- digit and low double-digit growth. That pace can’t be held up forever.
  5. 5. A Buying Opportunity? PriceSmart’s P/E Hasn’t Been This Low Since Mid-2011
  6. 6. The Bullish Argument There are two key things to keep in mind: 1. The real growth story comes from opening up stores in South America, where the company is doubling its presence by year’s end. 2. With only 31 stores in the comparative base, it’s easy for one or two stores falling behind to make a big difference in overall same-store sales.
  7. 7. What to Beware Of If they only grow at 1% per year, this stock isn’t worth 28 times trailing earnings. Same-Store Sales
  8. 8. While I think PriceSmart is worth looking into right now, it's important to remember that lots of American companies have plenty of exposure abroad. Apple is one such company. Some early viewers of Apple’s new product are claiming its everyday impact could trump that of the iPod, iPhone, and iPad. One small company makes Apple's gadget possible. To get the name of that company, click below.

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