Asset Junkie ! dot Com

BUILD A TREE HOUSE…

… In the DOLLAR TREE!

The low cost retailer Dollar Tree Inc. (NASDAQ: DLTR) reports a greater than expected increase in earnings and has spurred a near 5 percent increase in the share price.

The retailer, Dollar Tree Inc., who sells its good for $1or less announced August 26^th, 2009 that diluted earnings per share to $0.63 up a tremendous 50 percent from the previous year.

“Our sales continue to grow across a wide range of merchandise categories,” said President and CEO Bob Sasser. “Now more than ever, customers are relying on Dollar Tree for high value basic products including Health and Beauty Care, Household Supplies and Food, in addition to discretionary items including party goods, floral, toys, books and a variety merchandise for all seasons.”

The Dollar Tree had cash at the quarter-end of $358 million which was more than three times what was held at the end of their 2008 fiscal year. Furthermore Dollar Tree repurchased 1 million shares of common stock for $42.5 million at the end of the second quarter 2009.

Any Fool should know a company’s repurchase of shares of stock is a key indicator the company feels the stock is undervalued in the market. Doing such a repurchase during economic turmoil is another gauge that internally the company feels it has strong financials and a positive outlook on the market potential.

Dollar Tree is not alone in the market of low cost goods to consumers. Retailers such as Family Dollar (NYSE: FDO) and Dollar General (privately held company) are direct competitors of Dollar Tree. Family Dollar will release earning October 7^th, 2009; however, the street is looking good for Family Dollar and a possible IPO is underway for Dollar General, as mentioned on their investor relations page on the website.

The economy sucks, stocks are down and unemployment is up. I know that does not brighten your day, but keep in mind during every economic cycle, deals can be had and money can be made. Keep your eyes open for your next fix, because a junkie needs his asset fix.