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    A Decade of Revolution Declare Your Research Independence

As you prepare for the DG/KKR one-two punch of why the dollar store business model is worth your hard-earned capital, turn to Google for a reality check on 'Knowing your Customer."

We're all over this Dollar General IPO for several reasons, not the least of which is that it epitomizes our "Banker Bonanza" theme, where mediocre businesses that went private in the recent LBO wave are now coming to market in a last ditch effort for bankers to get a paycheck.

I can almost guarantee that half of the people who are looking at this deal have never shopped in a Dollar General store. Aside from stating the obvious...that you should get out there and see what you're buying. I'd also recommend checking out non-conventional venues for becoming familiar with the business -- like Google.  Come to think of it, do yourself a favor and see the store first. Otherwise a Google search might scare you away. See our simple search over the past few days below speks for itself.

The fundamental outlook for FDO is not rosy, nor is the stock. DG's bankers better hurry.  The good news for KKR, DG's owner, is that its parent registered as a broker/dealer in 2007, so now it can benefit from selling its own deals. No joke... 

Let us now if you'd like to see our Dollar General Blackbook for more analysis on the issue.

Eric Levine

DG/FDO: Know Thy Customer - 11 3 2009 3 16 09 PM