What other tech stock to consider?

[EnzoXYZ]

Costco makes most of its profits from membership fees.

This isn't true and not sure how it even came to be a misconception generally accepted idea. There are couple of interview with the CEO that debunks it. Costco slaps on 15% margin on all products and nothing more. That's the model and is why most big box can't compete with them. Should be couple of interview videos Jim Cramer did that explains this better than I ever can.

I definitely agree some products on Amazon can be shady. This said still better control over this than what BABA has on its pages.

 

[EnzoXYZ]

Perhaps it's just me and my consumerism level not high enough to be excited about grocery shopping, but Costco is just unsexy. How come it showed up in a tech investment thread?

I'm nearly 100% TSLA so have to occasionally pick out beat down stocks. I think the Amazon scare is over done thus took a dive at Costco. Nothing more.

 

[GoTslaGo]

Perhaps it's just me and my consumerism level not high enough to be excited about grocery shopping, but Costco is just unsexy. How come it showed up in a tech investment thread?

I think it is quite valid to talk about COST here, especially it is being contested by AMZN--which we can all agree is a tech stock. Since AMZN is now suppressing SP on multiple stocks, these other retail stocks, IMHO become valid topics of discussion since they are all potential investment opportunities (buy low, sell high anyone). Arguably many of these retail stocks are making strong forays into the tech market, in response to Amazon. Well, those that can are, those that cannot are failing.

 

[Lump]

After owning COST almost 30 years I finally sold on the WFM news, we love shopping at Costco but COST had a rich valuation with a PE of 31 prior to the announcement, the almost 30 point drop in COST tells you the market is worried about its future, whats going to happen when Whole Foods expands to 1000 stores & lowers thier prices? When Amazon opens automated self check out convenience stores, combines grocery delivery along with your packages + prescriptions etc...? Amazon just announced a Geek Squad like service...you ever buy a 70" TV from Costco...not fun...TV sales account for a large chunk of revenue & profits for Costco & now thats under assault.

Costco membership fees increased 9% starting June 1st, (not great timing), I predict in 3 years the average member will shift a good portion of spending away from Costco to Amazon\WFM & Costco membership will be declining.

just wait until you have Amazon Echo & it controls your Tesla, way cool https://www.amazon.com/dp/B01N9Y4I1E

I doubt WS will reward COST with a PE above 22, those days are over.

 

[TMSE]

This isn't true and not sure how it even came to be a misconception generally accepted idea. There are couple of interview with the CEO that debunks it. Costco slaps on 15% margin on all products and nothing more. That's the model and is why most big box can't compete with them. Should be couple of interview videos Jim Cramer did that explains this better than I ever can.

I definitely agree some products on Amazon can be shady. This said still better control over this than what BABA has on its pages.

The 15% margin is gross margin, which gets eaten mostly by opex. Without membership fees, Costco will be break even. Over 90% of the profits is from membership fees.

 

[bdy0627]

COST has fallen about as far as you would expect it to based upon the height of the previous rise. It's down well over 50%. That's one to keep an eye on. Risk-wise, it's safest to wait until it demonstrates a clear uptrend, rising above the 200 MA, etc.. Maybe worth a little nibble at this point, realizing it may still drop a bit more or consolidate for a while.

 

[TMSE]

After owning COST almost 30 years I finally sold on the WFM news, we love shopping at Costco but COST had a rich valuation with a PE of 31 prior to the announcement, the almost 30 point drop in COST tells you the market is worried about its future, whats going to happen when Whole Foods expands to 1000 stores & lowers thier prices? When Amazon opens automated self check out convenience stores, combines grocery delivery along with your packages + prescriptions etc...? Amazon just announced a Geek Squad like service...you ever buy a 70" TV from Costco...not fun...TV sales account for a large chunk of revenue & profits for Costco & now thats under assault.

Costco membership fees increased 9% starting June 1st, (not great timing), I predict in 3 years the average member will shift a good portion of spending away from Costco to Amazon\WFM & Costco membership will be declining.

just wait until you have Amazon Echo & it controls your Tesla, way cool https://www.amazon.com/dp/B01N9Y4I1E

I doubt WS will reward COST with a PE above 22, those days are over.

I like a PE of 22 than 31. However, I don't think Costco's existence will be shaken by Amazon. I am waiting for further PE deflation before pulling the trigger on buying COST.

 

[GoTslaGo]

This bothered me about COST when I read it (I was out already):

Costco to pay special dividend of $7, increases quarterly dividend by 5 cents

Quote:

The aggregate payment will be about $3.1 billion, to be funded primarily through additional borrowing, Costco said.

End quote.

Bothered me because I was out of COST already, so didn't get it , but also why borrow to pay a special dividend?

Edit:

Do have to admit, I have a special place in my heart for COST because it was my first stock purchase based purely on technicals. I just chickened out and sold before my price target of 180s, but still pocketed a nice profit.

 

[EnzoXYZ]

Perhaps it's just me and my consumerism level not high enough to be excited about grocery shopping, but Costco is just unsexy. How come it showed up in a tech investment thread?

I think it is quite valid to talk about COST here, especially it is being contested by AMZN--which we can all agree is a tech stock. Since AMZN is now suppressing SP on multiple stocks, these other retail stocks, IMHO become valid topics of discussion since they are all potential investment opportunities (buy low, sell high anyone). Arguably many of these retail stocks are making strong forays into the tech market, in response to Amazon. Well, those that can are, those that cannot are failing.

After owning COST almost 30 years I finally sold on the WFM news, we love shopping at Costco but COST had a rich valuation with a PE of 31 prior to the announcement, the almost 30 point drop in COST tells you the market is worried about its future, whats going to happen when Whole Foods expands to 1000 stores & lowers thier prices? When Amazon opens automated self check out convenience stores, combines grocery delivery along with your packages + prescriptions etc...? Amazon just announced a Geek Squad like service...you ever buy a 70" TV from Costco...not fun...TV sales account for a large chunk of revenue & profits for Costco & now thats under assault.

Costco membership fees increased 9% starting June 1st, (not great timing), I predict in 3 years the average member will shift a good portion of spending away from Costco to Amazon\WFM & Costco membership will be declining.

just wait until you have Amazon Echo & it controls your Tesla, way cool https://www.amazon.com/dp/B01N9Y4I1E

I doubt WS will reward COST with a PE above 22, those days are over.

COST has fallen about as far as you would expect it to based upon the height of the previous rise. It's down well over 50%. That's one to keep an eye on. Risk-wise, it's safest to wait until it demonstrates a clear uptrend, rising above the 200 MA, etc.. Maybe worth a little nibble at this point, realizing it may still drop a bit more or consolidate for a while.

Don't forget the many failures of Amazon in the past. Not all it touched will turn into gold. Remember back in the day of Amazon eBay like auction? Tablets? Phone? Recently is seems like all wins though.
Costco may not have high PE once the marriage in affect but I be surprised if Costco goes down without many many fights.

 

[GoTslaGo]

This bothered me about COST when I read it (I was out already):

Costco to pay special dividend of $7, increases quarterly dividend by 5 cents

Quote:

The aggregate payment will be about $3.1 billion, to be funded primarily through additional borrowing, Costco said.

End quote.

Bothered me because I was out of COST already, so didn't get it , but also why borrow to pay a special dividend?

Edit:

Do have to admit, I have a special place in my heart for COST because it was my first stock purchase based purely on technicals. I just chickened out and sold before my price target of 180s, but still pocketed a nice profit.

So since I didn't know the answer to this question, I googled it:

Do Companies Borrow Money to Pay a Cash Dividend?

 

[GoTslaGo]

Don't forget the many failures of Amazon in the past. Not all it touched will turn into gold. Remember back in the day of Amazon eBay like auction? Tablets? Phone? Recently is seems like all wins though.
Costco may not have high PE once the marriage in affect but I be surprised if Costco goes down without many many fights.

Costco online is pretty good. I've bought many items there (including furniture). Their return policy is the same, and if it's too big or heavy for you to bring back yourself, they will come back out to take it back. This is one aspect of a lot of traditional brick and mortar retail that Amazon currently cannot match. However, with their acquisition of Whole Foods, they may have a better physical presence to allow easier returns. But this will fundamentally alter Whole Foods.

 

[AudubonB]

Mod Input:

I can split this thread into
"Tech" and "General Investment Advice" segments, but I'd rather not because quite frankly, in my opinion the universe of Tesla-themed discussions is vast enough it would be detrimental to include all investment sectors. ===>So I'll request all to try to keep this thread to tech qua tech topics.<===

Other than that my own investment in COST goes back to Price Club days. And that our tourist lodge in Alaska could not do what it does or be what it is without access to its neighborhood Costco (that's 300 miles away, of course). But, I think, I digress.

 

[GoTslaGo]

Mod Input:

I can split this thread into
"Tech" and "General Investment Advice" segments, but I'd rather not because quite frankly, in my opinion the universe of Tesla-themed discussions is vast enough it would be detrimental to include all investment sectors. ===>So I'll request all to try to keep this thread to tech qua tech topics.<===

Other than that my own investment in COST goes back to Price Club days. And that our tourist lodge in Alaska could not do what it does or be what it is without access to its neighborhood Costco (that's 300 miles away, of course). But, I think, I digress.

Or maybe just a "What other stock to consider?" thread.

 

[EnzoXYZ]

Mod Input:

I can split this thread into
"Tech" and "General Investment Advice" segments, but I'd rather not because quite frankly, in my opinion the universe of Tesla-themed discussions is vast enough it would be detrimental to include all investment sectors. ===>So I'll request all to try to keep this thread to tech qua tech topics.<===

Other than that my own investment in COST goes back to Price Club days. And that our tourist lodge in Alaska could not do what it does or be what it is without access to its neighborhood Costco (that's 300 miles away, of course). But, I think, I digress.

Holy cow that's a long time especially if you held a nice portion without selling. What other "tech" stock is in your stash?

 

[EnzoXYZ]

Or maybe just a "What other stock to consider?" thread.

Good grief I didn't even realize "tech" was in the title of this thread.

 

[MXWing]

Why does it have to be a tech stock if not tsla? How many high beta stocks do you need and does TSLA not satisfy all the high volatility needs?

I will offer up a solid contribution.

Hasbro

1 - The true "Disney trade". Look at share price of DIS and HAS when Force Awakens came out and now.

2 - Rights to Jedi, Disney Princesses, Marvel characters. Ridiculous moat.

3 - Own IP of Tranformers, GI Joe, My Little Pony, etc

4 - Overlay the 1 year chart of HAS and chief competitor Mattel. Ugly lol

5 - Amazon proof

6 - Pays dividends

 

[Lump]

Has anyone here looked at APRN? Been thinking about buying a few shares. Main reasons are: expected to do over $1B in sales this year (up from $78MM..not a typo) in 2014, they have a massive potential market, and they're currently trading under 2x TTM revenues. They've been hammered by a poorly-timed IPO and the Amazon-Whole Foods news. I'm thinking that even moderate success in the next couple years should yield significant return. Any other opinions on APRN?

Blue Apron Is Crashing Thanks to One New Move by Amazon

In a July 6 trademark application, Amazon subsidiary Amazon Technologies Inc. revealed it's planning "prepared food kits composed of meat, poultry, fish, seafood, fruit and/or and [sic] vegetables ... ready for cooking and assembly as a meal," as well as primarily grain-based offerings. Britain's Sunday Times newspaper said Amazon will market the service as "We do the prep. You be the chef" that will cover ready-to-assemble kits of prepared food.

 

[SBenson]

Anyone looked into Impinj?

Amazon Food Ambitions Spur Little-Known Stock to Best IPO Return

This is the first time hearing about it but looks pretty interesting. A good bet on IoT?

 

[AudubonB]

Holy cow that's a long time especially if you held a nice portion without selling. What other "tech" stock is in your stash?

I first thought you were referring to the amount of time it takes to us get to/from Costco....

Tech stocks rarely were prominent for me in the first half-century of my active investment career. I vividly recall an officemate telling me how excited he was to be getting into Microsoft as it was about to IPO. I wished him well and hoped it profited him...but I did not feel comfortable at being able to evaluate it. Sure hope he held on!

As long-termers in this thread know, the single largest initial investment I've ever made - larger even than my first entry into TSLA - was NVDA on Aug 1 2014 at just under $17.


It's done okay.

 

[GoTslaGo]

Blue Apron Is Crashing Thanks to One New Move by Amazon

In a July 6 trademark application, Amazon subsidiary Amazon Technologies Inc. revealed it's planning "prepared food kits composed of meat, poultry, fish, seafood, fruit and/or and [sic] vegetables ... ready for cooking and assembly as a meal," as well as primarily grain-based offerings. Britain's Sunday Times newspaper said Amazon will market the service as "We do the prep. You be the chef" that will cover ready-to-assemble kits of prepared food.

Wife sent me this about Ikea--moving in on Blue Apron's turf?

IKEA Takes Its Assemble-It-Yourself Approach Into Food Prep - Food Network
IKEA Takes Its Assemble-It-Yourself Approach Into Food Prep — Food Network