Dollar General: What Retail Apocalypse?

For the last two years, the College Board — that oversees the SATs — has been testing an “adversity score” in an effort to add context to student tests, taking into account social, economic and family background.

While the only information collected from students is the high school they attend and their home address, from there, college admissions officers extrapolate 15 data points including things like crime and poverty rates, average levels of parental education and housing values.

A score of 50 means an average level of adversity. Higher than that? Ostensibly, the student has experienced more hardship. And only admissions officers are privy to these scores when reviewing a student’s application.

This fall, the adversity score will be tested at 150 more colleges and universities and then used across the board the following year.

Do you think an adversity score will level the playing field for students… or skew the admissions system more?

Do you think the SAT should be “fixed”?

Your Rundown for Friday, May 24, 2019:

Generally Speaking…

As a follow-up to one of the company’s we’ve put on our watchlist, we’re checking up on Dollar General.

You’ve probably seen the stores dotted throughout small-town America with their straightforward yellow and black signs. We say “small-town” because Dollar General builds stores in locations big retailers avoid.

And they serve customers big retailers avoid, too. To their own detriment…

“By serving the bottom of the nation’s economic pyramid,” Forbes reports, “Dollar General has generated one of the top performance records in retail.

“In 2018, the company reported its 29th straight year of same-store sales growth—despite minimal e-­commerce.

“That’s a streak no other major U.S. retailer can match: Even mighty Walmart endured nearly two years of comparable-­sales declines earlier this decade.”

Dollar General raked in $25.6 billion in revenue last year; its stock is near a record-high, “giving it a market cap of $33 billion, five times higher than Macy’s,” Forbes says.

Now, Todd Vasos — CEO of Dollar General — (yeah, it rhymes with Bezos) is expanding the Dollar General empire into major cities, testing stores under the name “DGX”. Not only that, the company’s testing out demand for refrigerated grocery items, too.

The takeaway? Dollar General (ticker: DG) reports earnings next week; analysts expect first-quarter growth. Stock’s even up 1% this morning. Seems like a no-brainer…

Market Rundown for Fri. May 24, 2019

S&P 500 futures are up 13 points to 2,835.32.

Oil is up 40 cents to $58.31 for a barrel of WTI.

Gold’s down $4.00 to $1,281.40 per ounce.

Bitcoin a shade above the $8,000 mark.

Have a great Memorial Day weekend. For a highlight from this week, check out The Rundown on Saturday.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Once Inflation Takes Hold…

The global economy can heat up and inflation will ignite faster than you can say – ‘What happened?’… In fact – the word is that the FED is preparing to let inflation gain some speed first before they react – a plan that I would not support at all – because it puts us behind the 8 ball (but what do I know?) … Once inflation takes hold – then its most likely a return to the late 70’s early 80’s when rates hit historic highs of 21%! And that is not me being anxious at all, it’s the hard reality – and for those of you who were NOT around during the late 70’s / 80’s – go and ask you parents – what happened…

Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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