Duckwall-Alco Stores, Inc. (DUCK)

[littlefish]

I added some at $11.52.

It is going to be about margins in this next Q. Expecting some weakness there and results could vary widely from that, but the company reported their 2nd highest revs for Q1 and their headcount went from 4150 to 3650 YOY in the annuals. Then there's the shrink improvement too.
But there will be margin pressure probably from product mix and also what all retailers are facing (distribution costs, etc). The adoption of flow thru model at their Kansas hub should help a bit.

I do kind of like their mix of discretionary and non discretionary items. Have no idea where margins come in with probably more strength in non discretionary lower margin product.

A break even Q would be a nice win for them in the weak Q1 period IMO. Don't know if they'll get that far that quick though. Hoping to avoid a big loss. The comps are easy for a few Qs.

Seems like a cheap value play (with a fair amount of debt) but the retail sector is struggling in the market and DUCK is no exception. Buy when others are selling I guess? At least their YOY comps continue to do well.