Loading...
Loading...
The broader markets are getting hammered, but one sector, the dollar stores, are holding up.
Names like Family Dollar
FDO, Dollar General
DG, and Dollar Tree
DLTR are all hovering near the flatline, or slightly negative.
This comes as the broader markets are all down around 1% or more, and the Dow Jones Industrial Average has broached the 12,000 level.
These names look to be holding up the best as the economy appears to be slowing, and consumers are making every dollar they spend count.
The sector has also had a boost recently from hedge fund honchos such as Nelson Peltz and Bill Ackman. At the
Ira Sohn Conference a few weeks ago, Ackman said that he had a stake in Family Dollar, and believed the company was worth $70 if it was able to make the operational improvements the company's management has talked about doing.
99 Cents Only Stores
NDN is also a name that has been in the spotlight recently, after the company received
an offer from Leonard GreenLoading...
Loading...
earlier this year.
Ackman said that Dollar General has done a much better job of growing since it was spun out of KKR. The company has higher margins, sales per square foot, and faster growth. The company has also increased the hours its stores are open.
Ackman
announced yesterday that he had increased his stake in the company, going from 4.7% to 8.9%.
Ackman and Peltz are in a sort of battle in Family Dollar, as Peltz has put
forth an offer for the company to take it private, but Ackman believes the offer is severely undervaluing Family Dollar.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In: Long IdeasHedge FundsMovers & ShakersTrading IdeasBill AckmanConsumer DiscretionaryGeneral Merchandise StoresLeonard Green & PartnersNelson PeltzPershing Square CapitalTrian Fund Management
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in