Stock buybacks, another type of investor reward, also are at an all-time low since S&P started keeping tabs on them in 1998's first quarter. For the second quarter this year (the most recent data available), S&P 500 companies spent only $24.2 billion to repurchase their shares, down 72% from $87.9 billion in April-June 2008, and an 86% drop from the record $172 billion spent on buybacks during 2007's third quarter. "At the height of the buyback bonanza," said Silverblatt, "companies spent 180% more on stock repurchases than they did on dividends. Now buyback spending is just half that of dividends." On the bright side, several big companies continued repurchasing their shares. ExxonMobil (XOM) spent the most, $5.2 billion. Wal-Mart (WMT) was second, dishing out $1.9 billion. Other notables were Family Dollar Stores (FDO), Staples (SPLS) and Medco Health Solutions (MHS).

"You've got this incredible all-at-once retail thing going on," he said, which is sending stocks across the board up, including Target (TGT), Williams Sonoma (WSM), Tiffany (TIF), Dollar Tree (DLTR) and Family Dollar (FDO)." Stop Trading!, Aug. 21

In the latter theory the big durable good numbers and existing-home numbers are "in" the stock market. I say that because some of my hardest-hit names are directly linked to a stronger economy -- 3M (MMM), Caterpillar (CAT), Deere (DE), Fluor (FLR) and General Electric (GE) -- while the recession stocks are rocking: Procter & Gamble (PG), Celgene (CELG), General Mills (GIS), Pepsi (PEP), Coca-Cola (KO) and Abbott Laboratories (ABT). Worse, Dollar Tree (DLTR) and Family Dollar (FDO) are on the move.

Cramer also called out an article saying that Family Dollar (FDO) was a good stock to own since the company's acceptance of food stamps is helping the bottom line. Cramer, though, put that company in the "Sell Block" last week, saying that Family Dollar is the worst stock to own in a recovery.

Weddington says go long Family Dollar (FDO) and short the SPDRs (SPY).

"People just aren't drinking as much," Jim Cramer said on Wednesday's "Stop Trading!" segment in response to host Erin Burnett's interview with Constellation Brands' (STZ) CEO.

"Maybe this economy is so bad that ... alcohol got more expensive," Cramer said. As a result, people are cutting back on things that have gotten too expensive, and discount-store stocks such as Family Dollar Stores (FDO) are going up. ("Stop Trading!" 4-8-09)

Good Investment.

Trading Down idea with a dollar store highly recommended & it sells clothes.

“Family Dollar (FDO) trumps the numbers. Big Lots (BIG) blows them away. AutoZone (AZO) and Monro Muffler (MNRO) put up some great earnings.
Wal-Mart (WMT) is triumphant and a dividend raiser. Dollar Tree (DLTR) rallies off the Family Dollar comparisons.
See a pattern? It's pretty obvious: People aren't buying new cars (as we know from those awful General Motors (GM) and Ford (F) sales figures), they are fixing them and making them work longer.
People are not shopping at Target (TGT) or Macy's (M) or Nordtrom (JWN), they are going to Wal-Mart. Why not? Wal-Mart's got them all beat on price and even on look and feel since the revolution Lee Scott put in place before he retired.
Family Dollar, Big Lots, Dollar Tree? When you are really in a jam you can go to these places. I don't care for Big Lots but I like my Dollar Tree, and if you are on a tight, tight budget, there simply isn't a reason why you wouldn't shop for food at Family Dollar.
These companies are supposed to thrive in hard times but they still represent bargains or aren't liked by analysts, particularly Family Dollar. AutoZone's rally seems like short-covering. Monro? Didn't budge on those good numbers -- strange.
If the market ever stabilizes -- saying something in itself -- you need to consider one of these estimate beaters for your portfolio.”

Family Dollar (FDO) trumps the numbers.

An extremely counter cyclical stock, FDO's price will suffer given a typical cyclical economic recovery.

growth stag.