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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (41864)	3/19/2011 12:15:23 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78507

re TGE, do you realize that TGT still has their credit card business on their balance sheet and that they are going to sell it. This should remove ~6.2B$ in debt from their balance sheet. They made about 500M$ in earnings with their credit card business, which is 11$ of their 4.5B$ in pretax earnings. So i suppose that earnings/share will be around 3.6$ (Y2010) after the sale of the credit card business whole debt will fall by ~ 6.2B$. the earning model for analyst do not take the sale of the credit card buiz in account even though it has been announced in the 10k. At around 3.8$/share in Y2011 earnings and a 50$ share price TGT still does not look cheap. Better to wait until earnings get revised down, which I suspect will catch some folks by surprise (who reads 10k anyways) and may cause a selloff.