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COST Update

posted Oct 11, 2009, 5:43 PM by Mohit Kumar   [ updated Oct 11, 2009, 5:43 PM ]

While our portfolio continues to impress, we are now eagerly awaiting the next round of earnings. Next 2-3 weeks would be crucial, as the earnings would help us gauge whether the steep rise in market over the last few weeks is justified! We will not speculate and would make our moves only after we get affirmative clues. Till then, we will continue to invest in more quality stocks and Hold the ones we have already identified!

COST Update

Our pick #11, Costco topped analyst estimates. Its same-store sales rose 1%, the first increase since September 2008 and compared against analysts' average estimate of a 0.7% decline. That included a decline of 1% in the U.S. and a rise of 6% overseas. Excluding currency and gasoline deflation impacts, sales would have increased 4%, including a 3% increase in the U.S. and 9% internationally. The sales numbers indicate that things are getting brighter for COST. In addition, the giant continues to grow its revenue, open new stores and the membership base continues to grow steadily. We are happily sitting on a profit of over 30% and the company is doing everything right to justify its place in our portfolio!

Stay tuned for our next addition to the portfolio which would be coming soon!