to do with debt and relative weakness in the sector as compared to WMT or BBBY perhaps.
In the area where I live, the "Super Target" stores seem to be doing very well. The Super Target stores offer "one stop" shopping...where you can buy just about anything on your shopping list, including some basic grocery items. Many of the Super Target stores are adding a pharmacy, as well as photo developing services.
A recent negative article about Target had what IMO could be seen as a positive statement:
biz.yahoo.com
"Despite its vulnerability among disounters, Target could fare better than the majority of more upscale retailers as the holiday season approaches. It remains attractive with price-sensitive consumers in higher-income brackets."
Target has always been very active in the communities where they are located and they donate a portion of their profits to various community non-profit organizations. From their web site:
"In 1946, Target Corporation, headquartered in Minneapolis, MN, became a founding member of the "Five Percent Club," a landmark movement encouraging U.S. corporations to commit five percent of federally taxable income to support community nonprofits. As a result of our commitment to sustained community giving, the Target Foundation was established.
In keeping with our strong tradition of giving, Target Corporation will give over $2 million every single week to the communities we serve."
targetcorp.com
BBBY builds new stores AND raise cash from current cash flows.
BBBY does not provide an active program of corporate giving, and does not pay a dividend. If BBBY were giving $2 million a week to the communities where their stores were located, and if BBBY paid a dividend to their shareholders....how would that change your perception of their growth?
From your work with "maximum pain" and options expiration, where do you see the share price of Target heading in the next couple of months?
I would like to own Target as a LTBH position...so I'd be interested in knowing where you might consider covering a short position.
I appreciate your thoughts on Target, even though IMO we don't agree on the long term prospects of this company. |
