Investing In Stock - bulk power
5/22/2009BJ’S Is a new retailer in the sense that they are newer to the market and in terms of growth they have had some considerable growing in not only net income but in stock price. I think the question remains at least for me “Is BJ a potential serious competitor to the largest retailers of all time Wal-Mart”? Is BJ a serious threat to Costco and Wal-Mart or are they easily going to be defeated and eventually fall quickly like other retailers in the past. There have been so many large retailers in the history of the United States that it is almost scary, the real question is what will be the next big retailer if any in the near future. There is something about BJ’S for some reason that really makes it different from other stores; I have stated in other articles also that retailers that sell in bulk quantities may actually do better in the long run then general grocery stores because of the price of gas. Now that we have given an overview of the company it’s time that we looked at the company itself and it’s fundamentals to decide if it’s going to continue being a good company to own in the future and you get to decide how large or small they become in your opinion on bulk power stores. -Reasons Why BJ’S Might Continue To Succeed They have way more equity as they do debt meaning that their business plan is working without racking up too much debt, this is a sign that they continue to succeed in the days to come because most retailers have higher ratios of debt. They also have better returns on their investments compared to other retailer which shows that they have strong management, a strong business model, and a strong business in general of selling in bulk power.-Reasons why they won’t succeed The company is still way too small to make money forever; they are too easily influenced by market directions unlike Wal-Mart and other large stores. The company also is way too risky because it’s in direct competition with other companies in which it will have to go into too much debt to be able to compete with them.
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