Family Dollar

Family Dollar's market location at the very bottom of the retail food chain puts the company in what would seem to be an unenviable position. But in spite of spending the entirety of its existence in more or less direct competition with Wal-Mart, Family Dollar has found the means to not only survive but thrive.

Operating more than 6300 stores all across the United States, Family Dollar has more than doubled in size in just the last seven years. Since taking over in 2003, the son of the company's father has more than demonstrated his business acumen. This smooth transition indicates that the current management is going to be quite stable for the foreseeable future.

Family Dollar has demonstrated an ability to grow its core business no matter the prevailing business environment. If the economy booms, more people will shop in its stores. If the economy falters, many consumers will shift from more expensive retailers and continue to drive the company's bottom line.

Family Dollar is an excellent long-term investment, but the stock should not be purchased at any price. Pay close attention to the company's ability to drive same-store sales. The company has put many new stores in business very recently and will need to demonstrate an ability to continue to grow sales at these locations.