Decorating the Christmas Dollar Tree

Has anyone but me noticed how incredibly busy Dollar Tree has been? I frequent a local Dollar Tree almost weekly. The manager told me that in one month the store had already surpassed the most profitable months of summer.

There are over 3,500 Dollar Tree stores nationwide. In the last quarter ending in October, the company reported a 37% increase in profit. Profit was $93.2 million compared to $68.2 million a year earlier. I can see what Dollar Tree is doing right. The company truly is a value-driven variety store operating at a one dollar price point. Finding a scientific calculator that helped me ace an introductory algebra course convinced me of this. I was the only one in my algebra class who didn't use the $40 Texas Instrument calculator sold at the college bookstore. The Dollar Tree calculator was just as good. (However, I still needed a $80 graphing calculator for advanced algebra and calculus. Electronics hasn't yet become that inexpensive.)

After the experience of finding such a good calculator, I was hooked on the store and intrigued by its bargains. I went on to find organic strawberries, organic blueberries and Westsoy lowfat soy milk (usually over $2 for a unit at any grocery store.)

I also checked out other dollar stores. They were comparable in party favors and holiday knickknacks but they lacked in variety and, yes, quality. I found lots of calculators in all kinds of sizes and colors. But only Dollar Tree had a scientific calculator. And, only Dollar Tree had at times organic products or soy milk.

To my surprise I also found a Tool Bench 8-piece hex key set. Instead of screws with either a flat or Philips head, many screws in electronics require a hex key to unscrew. The Dollar Tree hex key set was a big help when I had to disassemble my CD driver after my three year old niece pushed pennies through the slot. When I saw the kind of screws, I panicked until I walked into a Dollar Tree. The store had a hex screw key set. (I retrieved the pennies and put the CD player back together.)

Now, after finding the hex key set, Dollar Tree has become more than just intriguing, but a place I turn to when I really need something.

After hearing their latest earnings report I decided to become a shareholder. I started with 100 shares at 55.65, that's nearing its 52-week high. Dollar Tree is the kind of stock position I plan on adding to on any weakness. For example, Dollar Tree stock price seems to be impacted by weaknesses in other discount stores. Worries about Walmart may have sent Dollar Tree down 3% Thursday. Friday, the stock made a quick recovery while Walmart continued its decline. (I can see Dollar Tree stock going over 60, setting new 52 week highs.)

The US is now at 10 percent unemployment. That's not only 17 million people out of work, but 17 million people who will forgo expensive luxuries in exchange for a $1 price tag.

What is the value of a dollar? What can one really purchase with one dollar? The easiest way to experience the value of a dollar is through the useful products found at Dollar Tree.