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Target Corporation |
Please understand that this company is not positioned very well
because it has too many negative drivers affecting its share price.
Target can be a great place to do shopping--an experience incomparable
to its competitors, however, if a CEO of your own firm provides a
warning on:
1. margins being squeezed,
2. Credit division not selling in the near future,
3. share buyback program being halted (remember they got approved to
buy $10 Billion worth of shares...in July TGT said they will have
bought majority of their share by year end---year end has past and
less than majority have been bought back...now these are hardcore
numbers that I am referring to).
The parking lot at TGT can be packed at capacity, but, if a particular
sale threshold is not met then the stock is on the decreasing end.
This was in the end of November but this is one of the many negatives
that is pricing target very low right now:
"Fitch Ratings cut its credit rating for Target Corp (TGT.N: Quote,
Profile, Research), citing the retailer's new $10 billion share
repurchase program."
"Fitch anticipates that Target will fund the majority of the share
repurchase with debt, thereby weakening the company's credit metrics,"
the ratings agency said in a statement.
The new $10 billion share buyback program replaces its prior
authorization, and Target said it represents more than 20 percent of
outstanding shares, based on its recent stock price."