Casey has more advantages compared to its competitors. Its marketing strategy of cities with less than 5000 people gives it a go as it invests in areas that others have not invested and are not planning to invest there unless the population increases (Henry et al. 2013). Further even if the population increases, the company would already have established itself. Casey also enjoys the advantage of having centralized distribution centers (Casey). Its outlets are found within 500 miles of its distribution centers. Unlike the competitors, Casey does involve wholesales making it possible to control quality and gaining more customers trust worth. This gives them an edge over others.
The convenience stores industry does not face the challenge of pricing …show more content…
Equity securities refer to shares. They represent ownership in a given company (Cumming, 2013). They usually provide steady income in form of dividends (Cumming, 2013). Normally the dividends fluctuate in relation to the ups and downs of the economic cycles. The buying and selling of equity shares of Casey are done through the NASDAQ security exchange market.
Casey has a strong and sound financial base that makes its shares expensive. The shares currently trade at $38.25 per share (Casey). The decision by Casey’s board to turn down an offer by Couche Tard of acquiring it at a cost of $36.75 per share in 2010 was a strong statement (Casey). The directors thought it to be disrespect as to them the company was more than that. The cash flow statement indicate a consistent and growing revenues an indicator of the company being in good management plans as shown in exhibit 4. Its quarterly dividend policy also makes the shares of the company quite attractive. Further during the low season in the economic cycle the convenience stores sector was not affected much. This is as a result of the sector having specific customers that are after their services. Therefore investors need to make long term investment in Casey through the buying of long term shares instead of short terms
The convenience stores industry does not face the challenge of pricing …show more content…
Equity securities refer to shares. They represent ownership in a given company (Cumming, 2013). They usually provide steady income in form of dividends (Cumming, 2013). Normally the dividends fluctuate in relation to the ups and downs of the economic cycles. The buying and selling of equity shares of Casey are done through the NASDAQ security exchange market.
Casey has a strong and sound financial base that makes its shares expensive. The shares currently trade at $38.25 per share (Casey). The decision by Casey’s board to turn down an offer by Couche Tard of acquiring it at a cost of $36.75 per share in 2010 was a strong statement (Casey). The directors thought it to be disrespect as to them the company was more than that. The cash flow statement indicate a consistent and growing revenues an indicator of the company being in good management plans as shown in exhibit 4. Its quarterly dividend policy also makes the shares of the company quite attractive. Further during the low season in the economic cycle the convenience stores sector was not affected much. This is as a result of the sector having specific customers that are after their services. Therefore investors need to make long term investment in Casey through the buying of long term shares instead of short terms