The stock price is breaking down… The company took $2.5 B write-down during the last quarter, primarily the write-down is related to Family Dollar. Looks like it is heading to $100. I stopped following this name. So no real idea why the price is rbeaking down…
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Dollar Tree and Family Dollar were Mungofitch favored picks. I checked the other forum, and no recent comments from Mungofitch. There was a brief Dollar Tree thread in March 2024 - again, no Mungo.
I shop @ Dollar Tree occasionally. I should care about Dollar Tree.
The earnings are on June 5th and we will get fresh performance data and commentary. Will wait till then.
The turnarounds take time… Looks like this is going to be dead money for few more quarters. I am going to sell a $80 Put, if it gets there then I will start looking into this name.
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DLTR is an example of poor management
DLTR in the last 5 years bought a grant total of 17 million shares, or less a million share per quarter. Yet the last quarter they bought back 2.5 million shares at $122 for $310 m. The stock price now is 20% down. The stock price declines for variety of reasons and beyond the control of the management. However, this price decline is entirely due to the company’s performance, which the insiders had a very good idea. So to whose benefit they did this buyback?
It is the 10th year anniversary of buying Family Dollar, what a waste of capital. Another example of empire building gone wrong.
The management wasted capital in everything except paying shareholders a dividend. Investors should demand more from the management.
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