I have liked this for a bit. Figured I would put it up here for everyone to poke holes in. It had a very strong year last year, took a bit of a break earlier this year and ramped up again recently. Basically:

  • Taking the Costco concept to the Carribean and Latin America.

  • Have been running comps in the mid/high teens.

  • Last quarter reported 18% membership growth.

  • Starting to move into the Columbian market, which could double their existing store growth.

  • You can actually buy Kirkland products in the stores, so Costco is the supplier. Seems like a natural strategic acquisition for Costco, should they want to expand more globally.

Good company. What is your intrinsic value estimate though?

Conservative balance sheet recap taking debt from 86mm to about 500mm using 5% growth on TTM EBIT, 7% cost of debt, 10% cost of equity gets me to about $110. Recap valuation is what got me interested in the first place as they have very low levels of debt.