If you’re looking for a safety play Morgan Stanley analyst Joseph Parkhill has an idea for you.
He suggests hiding out in Dollar General.
”Morgan Stanley added Dollar General to its best ideas last this past April because we think this companies has more specific drivers to drive both sales and margins over the next few years," says Parkhill on Fast Money.
”Overall they have a real estate relocation program which is adding 3% to sales on its own. On top of that they’ve been adding more merchandise to their stores and re-merchandising more categories within their stores. And they have square footage growth of about 5%."
"So if you add all that up you get 10% growth potential,” Parkhill concludes.
* Hear more from Joseph Parkhill. Watch the video now!
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.
Trader disclosure: On August 24th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (GE), (POT); Cortes is long (FCX); Cortes is long (SFD); Cortes is long (BHP); Cortes is long Crude Oil; Cortes is long Australian Dollars; Finerman’s firm owns (BAC); Finerman’s firm owns (JPM); Finerman’s firm owns (BKS); Finerman’s firm owns (RIG); Finerma’s firm owns (BP); Terranova owns (AXP), (C), (BMO), (V), (POT), (OXY), (GLD), (FCX), (APA), (SU), (XBI), (MRVL), (TBT)
For Tim Seymour:
Seygem Asset Management is short (FCX)
For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (DRYS)
Virtus Investment Partners own more than 1% of (EXR)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (XLK)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
For Patty Edwards
Edwards owns (BAC) for clients
Edwards owns (C) for clients
Edwards owns (CAT) for clients
Edwards owns (FCX) for clients
Edwards owns (GE) for clients
Edwards owns (GLD) for clients
Edwards owns (JNK) for clients
Edwards owns (LQD) for clients
Edwards owns (MDT) for clients
Edwards owns (RIG) for clients
Edwards owns (VXX) for clients
Edwards owns (SH) for clients
For Joseph Parkhill
Within the last 12 months, Morgan Stanley has received compensation for investment banking services from Dollar General Corporation.
Within the last 12 months, Morgan Stanley has provided or is providing investment banking services to, or has an investment banking client relationship with, the following company: Dollar General Corporation.
Morgan Stanley & Co. Incorporated makes a market in the securities of Dollar General Corporation.
Barry Ritholtz
***No Disclosures***
Jeff DeGraaf
***No Disclosures***
CNBC.com with wires.
