Top 5 Value Stocks To Invest In 2016: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By John Maxfield]
If you're anything like me, two things went through your head when you saw this. First, you regret that you missed out on the investment opportunity. Since the end of 2009, shares in all three of these companies, led by Dollar Tree (NASDAQ: DLTR ) , have simply trounced the broader market. Even the worst performer of the bunch, Family Dollar (NYSE: FDO ) , beat it by nearly a factor of two.
- [By WWW.DAILYFINANCE.COM]
Richard Levine/Alamy These aren't the best of times for discount retailers, but it certainly seems as if Family Dollar (FDO) has become the belle of the marked-down ball. Two chains catering to thrifty-minded shoppers have entered into an unlikely bidding war for Family Dollar, and it's shaping up to be a bit more interesting than your typical love triangle between three retailers with the name "Dollar" in their monikers. The story began late last month when Family Dollar announced that it would be acquired by Dollar Tree! (DLTR) in an $8.5 billion transaction. It seemed like a simple enough transaction. Dollar Tree would be paying a reasonable 22 percent premium for Family Dollar. The deal would create a discounting behemoth with 13,000 stores across North America. The combined companies would eventually result in trimming $300 million in annual overhead. It seemed like a great way out for frustrated Family Dollar shareholders. The deep discounter had missed Wall Street's profit targets for three consecutive quarters. Analysts see declining profitability on flat sales for its fiscal year that ends this week. It seemed as if Dollar Tree would have Family Dollar all to itself, but then it got some unexpected company. Turning Down a Fistful of Dollars Dollar General (DG) stepped into the picture last week, offering to pay even more for Family Dollar. It offered an all-cash deal valued closer to $9 billion. The deal seemed to be clearly superior on the surface, but Family Dollar's board shot it down. This wouldn't be the first time that a board sided with a friendly buyout offer to a higher hostile one. Arranged deals often mean cushier positions for the acquired company. However, there was a method to the board's madness this time. Family Dollar declined Dollar General's offer because it felt that antitrust regulators wouldn't let that particular buyout go through. Dollar General rings up more than twice as much in sales as Dollar Tree. The bigger the riv
- [By WWW.DAILYFINANCE.COM]
#fivemin-widget-blogsmith-image-305703{display:none}.cke_show_borders #fivemin-widget-blogsmith-image-305703,#postcontentcontainer #fivemin-widget-blogsmith-image-305703{width:570px;height:411px;display:block} NEW YORK -- The fight for penny pinchers is intensifying. Dollar Tree (DLTR) said Monday it is buying rival discounter Family Dollar (FDO) for $8.5 billion, significantly broadening its reach as it looks to fend off Walmart, which has been stepping up its courtship of lower-income customers The deal makes D! ollar Tre! e the biggest player in the dollar store segment, with its more than 13,000 combined locations eclipsing current leader Dollar General (DG), which has about 11,300. Dollar stores grew during the recession as people across income groups searched for cheaper options. To attract a broader array of customers, they also expanded their offerings to include more groceries and brand-name products, instead of just the party favors and other knickknacks people often associated with them. More recently, however, sales at dollar stores have been suffering because the lower-income customers who go to them are facing persistent job instability and slow wage growth in the aftermath of the recession. Walmart Stores (WMT) and Kroger (KR) also have been opening smaller store formats to directly compete with dollar stores. During its current fiscal year, Walmart plans to open 270 to 300 smaller outlets designed to cater to shoppers looking for more convenience. Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors, said because the Dollar Tree deal will allow the company to lower expenses by merging its operations, it will ultimately be able to lower prices to better compete with Walmart. "Now they're going to take the fight back to Walmart," Sozzi said. The deal also gives Dollar Tree more flexibility. Dollar Tree is true to its name, with everything in its stores costing just a buck. The fixed pricing has helped attract more customer
source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/top-5-value-stocks-to-invest-in-2016.html
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