What a statement!
It's true that dollar stores have been all the rage with even Family Dollar (FDO) reporting a terrific number this week. It's a terrific secular trend that I have been riding for some time as the stores have catered to the lower classes and moved up the food chain with more middle-class buyers.
Given that about one-third of the nation is on food stamps and these stores have moved aggressively into food, including packages made specifically for dollar stores, the case could be made that we have something big going on here. So you could say that Dollar General was unique in its opportunity.
But Dunkin Brands wasn't unique at all. It is part of a big secular coffee drinking trend, and it did put through a terrific dividend -- it now yields 2% -- and it has gained 20% for the year. But it was a pretty run-of-the-mill secondary, and it turns out there was so much demand that they had to increase the size of the deal and raise the price of the offering. That is just downright remarkable.So, while some want to draw the conclusion that red-hot IPOs like the recently minted Millennial Media (MM), Brightcove (BCOV), ExactTarget (ET) and Annie's (BNNY) are signs of froth, I think the success of the Dunkin and Dollar deals shows that there's just tons of money that want high-quality merchandise at a minimal price break. That bodes incredibly well for the second quarter of 2012, a really huge statement after the best quarter since 1998. Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
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