Informant38

Citizens' Committee to Welcome Wal-Mart

The authors point out that Costco recently posted a 25 percent profit gain, as well as a 14 percent sales hike. Yet Wall Street punished Costco's stock, driving it down 4 percent. What gives? As the authors report: "One problem for Wall Street is that Costco pays its workers much better than archrival Wal-Mart Stores Inc. does, and analysts worry that Costco's operating expenses could get out of hand. 'At Costco, it's better to be an employee or a customer than a shareholder,' says Deutsche Bank analyst Bill Dreher."
And there it is in a nutshell.

Jim Hightower Apr.13.04