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Final
Segment #1: |
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'CEO
Interview'
'Consumer Affairs'
Jim Sinegal,
CEO |
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Thursday,
December 18, 2008 |
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Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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COST |
54.15 |
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Jim:
Costco (COST)
is clearly the place
to shop for most
people... well, in
this economy... at
least until it
recovers... and
maybe even after
that.
Costco's traffic has
stayed strong...
it's up 3% since
August, despite the
massive drop-off in
consumer spending.
We know that most of
the retailers that
we cover have had a
big decline... some
of them
double-digit... not
Costco... it's
increasing.
Now, Costco's
higher-margin,
private label brands
are taking share.
You might know that
as the Kirkland
Brand... People are
still signing up for
memberships like me,
but the stock is
down 22%
year-to-date...
again, better than
most retailers...
but, in part,
because on the last
conference call,
management has noted
a little caution,
okay... and the
estimate for fiscal
second quarter 2009
was on the high side
of expectations...
Management is not
providing earnings
guidance... that's
pretty much of a new
thing that a lot of
managements are not
doing... They are
just saying that
it's too hard to
forecast with this
uncertainty in the
environment... how
could you not agree
with that?...
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Continued below...
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Thursday,
October 22, 2008
(Cont'd from
above)...
Jim:
Over the last 30
days, the consensus
estimate for
Costco's fiscal 2009
has been taken down
by 5%... not a lot
of visibility...
it's scaring people.
That said, the stock
has been rallying,
and it's even up
today on a really
down 200 day...
$54.51
I've got to tell
you, this stock, I
feel as bottomed...
But, you know
what... let's get a
better picture of
what's happening at
the company by
talking to Costco's
fabulous CEO, Jim
Sinegal... a man
that we have praised
repeatedly on this
show. Why? Because
he is a
moneymaker... and
find out if the
stock is right...
Mr. Sinegal, welcome
back to Mad Money...
Jim's comments
AFTER the interview:
Look guys, if
you think that
the economy is
not going to...
well, let's say
you think it's
going to get
weaker... and
you think that
people are going
to continue to
try to look for
bargains... the
biggest bargain
out there, other
than
Wal-Mart (WMT*),
which I own four
my charitable trust,
is
Costco (COST).
I think it
works. You heard
from the man.
What can I say?
Especially if it
comes in...
(i.e., if the
stock price
comes down)...
Read Jim's next Segment
here
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Search for Jim's past comments about a specific
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