Posted 11/20/2008

THE NEW DOLLAR STORE ON WALL STREET

In these days of economic meltdown, some people are doing very well.

Pawn shops are booming as frantic consumers of all financial classes desperately rush in the door to get money by pawning their boomtime baubles and furs. Even boats. One lady came into a shop with a $10,000 fur and was grateful to get $200 for it. It's now for sale for $500 if you're interested in a ten grand fur piece.

While most retailers are looking forward to a disastrous Christmas sales season, the dollar stores are thriving. Everybody and his sister is trading down. Forget Kohl's, Sears, and Target – the real action is at the dollar store.

Dollar stores are doing so well that their stock is up 42 percent this year. Even their competitors are swimming in liquid gold. Dollar Tree stock is up 46 percent, and 99 Cents Only stores are up 54 percent.

These companies are doing well in our terrible economy because they sell only those things that people need – and at very low prices. They don't sell things you want, or aspire to want. Just the day-in day-out things you need to survive.

You may not find a six-pack of Coke, but you can get a six-pack of Shasta – for 99 cents. As things get worse and worse, the dollar store is offering cheaper and cheaper food products. You have to forego refrigerated pasta and settle for Delmonico's spaghetti. But, heck, it's still carbohydrates, and one fills the belly as well as the other. And your kids will love you for serving more macaroni and cheese.

Two things the dollar store doesn't carry are stocks and bonds.

But not to worry. If you want to buy some really cheap stocks, there's a virtual dollar store on Wall Street these days.

Here are some of the dollar-or-less stocks you can buy. Some are already below a dollar and others are predicted to reach the 99 cent level soon:

• General Motors
• Ford
• Circuit City
• AIG
• Fannie Mae
• Freddie Mac
• Sun Microsystems
• Nortel
• And a whole slew of banks

Just think, two years ago everyone thought these were healthy companies. Their bosses were swimming in lush salaries, stock options and bonuses.

Now their stocks are in the great dollar store in the sky.

And you can't even pawn a share.

If you have some, best give them as presents to those relatives you don't like at Christmas. Beats a lump of coal in the stocking.

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