Dear Mr. Berko: I bought 100 shares of Tractor Supply Co. in June 2015, paying $95 a share. But it hasn’t been there since. I know that the company’s revenues and earnings have increased nicely since I bought the stock, but I watched the stock fall to $50 last year, and it’s still a long way from $95.
My stockbroker wants me to buy another 100 shares and suggested that I write to you for an opinion. He said you told one of his other clients last month that Tractor Supply could be a $130 stock in two years. If so, then I will buy 100 more shares.
— KG, Wilmington, N.C.
Dear KG: In May, I told a reader that Tractor Supply Co. could trade at the $120-$140 level in two years. However, I have no idea whether the writer was your broker’s client.
For a city guy like me, it’s a hoot to wander those 15,000-to-20,000-square-foot Tractor Supply stores (TSCO-$83). TSCO was founded in 1938 as a mail-order tractor parts business and grew to a successful retail store in charming Minot, N.D. TSCO now has 1,840 locations in 49 states. It is the largest retail store chain that caters to the rural lifestyle and needs of recreational farmers and ranchers and plans to open at least 80 stores a year in outlying metropolitan markets and rural communities. TSCO is also a go-to spot for tradesmen and small businesses. The bright, clean and colorful store I visited had the sweet smell of wet hay and the pungent scent of fertilizer, mixed with the sharp smell of new Goodyear tires. And all the staff members were well-dressed, friendly people.
