The Proof’s in the Costco Hoodie

To the Editor:
The comparisons in warehouse clubs are intriguing, and I appreciate Teresa Rivas’ analysis of new technological trends at those companies (“How Costco, Sam’s Club, and BJ’s Won Over America,” Cover Story, Oct. 1). While Sam’s Club has taken the lead with efficient warehouse customer operation innovations, I predict that Costco Wholesale will closely follow. Costco already uses sophisticated robots and cutting-edge computers at its gigantic pharmacy distribution centers and optical manufacturing plants. What Sam’s Club and BJ’s lack is Costco’s dedicated and enthusiastic member base. None of my other clothes get the same spirited reaction as when I wear my Costco-branded hoodie.

Joel Goodman
Centennial, Colo.

The Credit Cycle

To the Editor:
Regarding “Public Bonds Are Booming. Why Is Private Credit Flashing Distress?” (Up & Down Wall Street, Oct. 3): Some 15% of the loans in business development corporations (which make loans to subprime companies) are now payment in kind (no cash interest payments; the interest due just gets added to the loan amount). The credit cycle definitely seems to be rolling over, with bankruptcies to follow.

Robert Ray
On Barrons.com

Defining Socialism

To the Editor:
Regarding “Interactive Brokers’ Founder Changed Trading Forever. What He Sees Next” (Interview, Oct. 2), Thomas Peterffy summed up socialism perfectly: “Under socialism, nobody has any incentive to create anything because they don’t enjoy the benefits from their labor.”

Nick Pieti
Cypress, Calif.

That’s Progress!

To the Editor:
As a big fan of Wedbush Securities’ Dan Ives, I was struck by his identification of potential takeover targets: SentinelOne, Telos, Qualys, Tenable Holdings, Tripadvisor, Lyft, and C3.ai (“Tech Buyouts Have Heated Up. These 8 Companies Could Be Next,” The Trader, Oct. 3). Since growing interest in artificial intelligence is identified as a prime motivator, I was surprised that another company, also recently touted by Ives, was conspicuously absent from the list. Enter Progress Software, founded in 1981 and publicly traded since 1991. I think of Progress Software as an “Old Tech” company with a recent shot of AI adrenaline. The earnings release on Sept. 29 reflected earnings per share and revenue well above expectations.

It’s noteworthy that back in July, well before this upside surprise, Ives reiterated his Outperform rating, with a price target of $75. This represents a 63% premium to the current quote of $46. In light of these developments, this target now looks very reasonable.

Rob Suthe
Bethesda, Md.

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