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Thread: Costco COST:US?

  1. #11
    Senior Member
    Join Date
    Oct 2013
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    At one point I owned a piece of this. Should have kept it, lol. I shop there but have to be careful on pkg quantities. As far as paying for my membership, I get bigger refund checks than I pay for membership so that is ok with me. I wish they would open a few more gas stations and go back to their better fuel prices. Seems their fuel savings aren't as good these days.


  2. #12
    Senior Member
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    Aug 2013
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    1,441
    Just to tag some recent COST news to this thread: Costco to open first business centre in Canada — a move that could ‘devastate’ wholesale distributors December 14, 2016.
    Costco’s move to open a business centre in Canada... could disrupt the business of traditional office and restaurant supply distributors, experts say...
    The first location in Canada, open to all regular Costco members and part of a rapidly expanding business offshoot for Costco in the U.S., will open in Toronto in March...
    elements of the new business will compete with Grand and Toy, Staples, and manufacturers and wholesalers in food office and furniture supply such as Unisource Canada Inc., Sysco Canada and Teknion Ltd.
    “Costco operates on a 15 per cent margin at retail,” Winder said. “If they work on the same gross margin (for the business centre), which I believe they do, that will significantly disrupt the wholesale market, because wholesalers work on a margin of anywhere from 30 to 50 per cent.”
    With annual sales of close to $21 billion and 94 warehouse stores across this country, Costco Canada is embarking on an aggressive expansion in fiscal 2017, opening seven warehouse stores as well as the business centre...

    http://business.financialpost.com/ne...e-distributors

    NB: We own COST long term. It is a large % of our US side holdings. We also shop there regularly. On waste - we find the bulk/reduced packaging to be less wasteful that conventional grocery stores.

  3. #13
    Senior Member
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    Sep 2011
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    British Columbia
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    30 times P/E and 5.8 times book is a crazy price to pay for 3% revenue growth and 3% net profit growth per year. It's a great company, but very expensive with slow growth and no real ability to generate a lot of cash for dividends or buybacks.

  4. #14
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    Jan 2011
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    ...I'm guessing that with all the generally negative feeling in here.... the stock should do quite well over the next 12 months!!! LOL.....

  5. #15
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    Quote Originally Posted by doctrine View Post
    30 times P/E and 5.8 times book is a crazy price to pay for 3% revenue growth and 3% net profit growth per year. It's a great company, but very expensive with slow growth and no real ability to generate a lot of cash for dividends or buybacks.
    Valid points for these days. Over the past 4 yrs our dividend has grown from $1.10 to $1.80/sh/yr while share value has gone from $102 to $160. PE was around 25 when we bought. It is sufficient for our USD vacation money.

    Last edited by OnlyMyOpinion; 2017-01-05 at 07:56 PM.

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