Editor's Note: Below is a brief excerpt/update on our long Dollar Tree (DLTR) call from our Retail team's morning research note. Shares of DLTR are up around 13% since we published How To Unlock 'Huge' Upside At Dollar Tree, on October 1st, while the S&P 500 has fallen approximately 13%.
Dollar Tree (DLTR) remains one of our top Long Ideas.
With the DLTR Board nomination window having come and gone without a 13D, we are presenting a "Black Book" next Thursday January 10, at 12:30 ET to outline the decision tree from here for both the Board, management, and (increasingly frustrated) shareholders.
When the stock flirted with $80, a lot could be taken on faith about value being unlocked.
Above $90 some more serious questions have to be answered about:
- the trajectory of the base business (including downside support)
- the viability of management's remodel strategy
- changes that could be made by Tad Dickson (new change-agent Board Member who started 2 days ago)
- the change in posturing of key shareholders that can still buck the nomination window in search of more than two Board seats
If you are an institutional investor interested in this call, email sales@hedgeye.com for access.
