A week ago I wrote an article comparing the two best known dollar stores. "The battle of the dollar stores" was my attempt to decide which of those two discount operations might provide better growth in 2007. A quick review of their respective performances amidst the current market downturn indicates that while not performing spectacularly, Dollar General (NYSE:DG) appears to be weathering the storm. What prompted me to write this current mention of DG was a couple comments which I witnessed on a message board. A couple of emotional writers exchanged swipes in regard to DG and I find them quite humorous. The comments linked to here reflect common sentiment towards DG right now, that being that the company's share value is deflated well below expectations.

It is my opinion that positions held in stocks which were undervalued prior to the markets turning south is a good spot to be in right now. Historically it's the positions in stocks which consensus declared were overvalued which have taken the biggest pounding in market down turns. So if you are holding shares of Dollar General and you purchased them prior to the market slide during the period in which they've been deflated, in my thinking you now hold a pretty safe position in which to ride out the storm.

See my declarations regarding the market's bearish turn here, here and here.

I thought it might be interesting to present a comparison between the two best known dollar store operations. Both Family Dollar (NYSE:FDO) and Dollar General (NYSE:DG) are well known for their penny pinching product packed stores but in a financial sense how are these two discount chains faring within the far flung retail world and how do they compare to one another? With reckless abandon I have chosen to dive deep into the darkest reaches of the Internet to draw some insight on the dollar store world.

Dollar General, a Fortune 500 discount retailer, has been in operation since 1955 and currently operates 8,309 stores. The Dollar General website predicates the company's mission upon the statement, "Dollar General stores offer convenience and value to customers, by offering consumable basic items that are frequently used and replenished, such as food, snacks, health and beauty aids and cleaning supplies, as well as a selection of basic apparel, housewares and seasonal items at everyday low prices."

Family Dollar began operations in 1958 and is a part of the Fortune 500 Index. Currently, Family Dollar operates over 6,200 stores which are especially located to serve Family Dollar's middle to lower income target clientele. Their mission statement as presented on the Family Dollar website is a three part declaration of value: "For our customers, a compelling place to shop . . . by providing convenience and low prices. For our associates, a compelling place to work . . . by providing exceptional opportunities and rewards for achievement. For our investors, a compelling place to invest . . . by providing outstanding returns."

Both of these dollar store operations appear to make it clear that it is their intent to offer discounted retail merchandise in first class fashion. Both companies have a drive and focus which place the average American at the heart of their mission and both companies also seek to present their investors with consistently healthy returns. And the more I read about these two compact discount retailers, the more I get the message that they are far less concerned about competing with each other than they are about trimming the edges off of their mutual competitor Wal-Mart (NYSE:WMT).

Is America one big boring cliche after another? To many foreigners it is, since most of our shopping -- a very big reason for tourism anywhere -- is done at cookie-cutter chain stores. Whether it be home furnishings, consumer electronics, food or baby clothes, there is a chain store (and many different ones at that) dedicated to feeding the commerce need we have for every possible segment of living. Capitalism at its best, you might say. Or, its worst, if you're into the "experience" of shopping rather than the "task" of shopping.

For the most part, done are the days of the "mom and pop" store. The chains are everywhere, ready to sell, serve and provide anything they possibly can while collecting as much information about you as they can. Now, I'm not necessarily against chain stores; as the biggest force in the world's largest economy (at least two-thirds of it) runs from the same consumers who keep these chain stores humming night and day.

Chains like the following list are present in almost every large American city (get ready...deep breath) Bed Bath & Beyond; Linens-n-Things; Barnes & Noble and Borders; PetSmart and Petco; Circuit City and Best Buy; Lowe's and Home Depot; CVS and Walgreens; Wal-Mart, Target and Costco; Dollar General, Family Dollar and Dollar Tree. Need more? How about the Apple Store and Pottery Barn, the Gap and Ann Taylor, Banana Republic and DSW, Starbucks and McDonald's. Now that's a lot of chain stores. What would we do without all these chain stores? Probably we'd all pay higher prices while actually enjoying the shopping experience again. We might even form social attachments to our local merchants again. But, the American consumers' motto continues to be "price, price, and -- well -- price."

That's why we have chain stores.

Looks like yet another vague stock downgrade has come from a major ratings house, as analysts at HSBC have downgraded shares of low-price retailer Dollar General Corp. (NYSE:DG) from "neutral" to "underweight" with a target price of $14 per share.

After having looked at the "dollar" landscape recently -- which includes Dollar Tree Stores, Inc., Family Dollar Stores, Inc. and Dollar General -- I was amazed to see that of the 19 items I picked up at a Dollar General store on a research visit were marked much higher than $1 -- the prices ranged from $4 to $19.

Yet, at Dollar Tree, every single item was marked for $1 for all 15 items I picked up to research -- making it a "true" dollar store. Now, the range of goods inside Dollar General were a step above those at Dollar Tree, but some of the bargains were not hat impressive really, although many were. Perhaps "Dollar General" should be "$10 Dollar General."

On today's STOP TRADING segment on CNBC, Jim Cramer talked about Dollar General (DG) on a fundamental basis. He said Banc of America noted it is good to buy with a $20 target, but their call was when it was in the $14s. He said it can be bought on fundamentals but he wouldn't buy it right there just on hopes of a buyout. He said if there is no deal today then it will fall $0.50.

Cramer said the selling squall in the market may last 3 days, but there isn't anything truly fundamentally wrong with the market.

He also noted that Morgan Stanley is saying there is a bubble in apparel is wrong. He said he doesn't believe Under Armour (UARM) is done and is tempted to say buy now. He thinks the company still has great momentum.