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Is Price Smart doing well in the DR and would it be a good stock investment at the $6USD or so level?
I think someone mentioned in another thread that PS is a sub of Costco, but apparently not...or I misunderstood...or something.
Best, P
...............
The PriceSmart is right
PriceSmart (Nasdaq: PSMT) has been sent to the corner wearing a dunce cap. The warehouse club operator that you've never heard of (their 26 retail locations are located in Latin America, Asia, and the Caribbean) has seen its shares drop sharply. Over the last two years, the stock went from peaking past $40 to roughly $6 today. Sure, domestic warehouse clubs have had their hiccups as well, but PriceSmart also has had to deal with everything from currency devaluations in the Dominican Republic to political and economic uncertainties in many of its other markets.
With a double-digit slide in comps last month and a painful third-quarter loss, PriceSmart isn't looking so hot right now. But it's worth noting that the company had been consistently profitable until its recent debacle. BJS Wholesale Club (NYSE: BJ) and Costco (Nasdaq: COST) trade at price-to-sales multiples three to four times higher. PriceSmart isn't worthy of similar markups in its present state, naturally; however, it is an attractive buyout possibility for stateside operators looking to enter PriceSmart's emerging markets.
Is Price Smart doing well in the DR and would it be a good stock investment at the $6USD or so level?
I think someone mentioned in another thread that PS is a sub of Costco, but apparently not...or I misunderstood...or something.
Best, P
...............
The PriceSmart is right
PriceSmart (Nasdaq: PSMT) has been sent to the corner wearing a dunce cap. The warehouse club operator that you've never heard of (their 26 retail locations are located in Latin America, Asia, and the Caribbean) has seen its shares drop sharply. Over the last two years, the stock went from peaking past $40 to roughly $6 today. Sure, domestic warehouse clubs have had their hiccups as well, but PriceSmart also has had to deal with everything from currency devaluations in the Dominican Republic to political and economic uncertainties in many of its other markets.
With a double-digit slide in comps last month and a painful third-quarter loss, PriceSmart isn't looking so hot right now. But it's worth noting that the company had been consistently profitable until its recent debacle. BJS Wholesale Club (NYSE: BJ) and Costco (Nasdaq: COST) trade at price-to-sales multiples three to four times higher. PriceSmart isn't worthy of similar markups in its present state, naturally; however, it is an attractive buyout possibility for stateside operators looking to enter PriceSmart's emerging markets.