Takeaway: DLTR needs a research deep dive now more than ever. BlackBook on Mon 2/3 at 2PM EST to fully vet both banners across durations.

Like it or not, DLTR is a battleground stock in the high $80s. It’s back to where activist investors first started building positions in the name, and is a stone’s throw to where we first recommended the name long side (at $80.51). We’ve seen numerous downgrades, and sell-side sentiment is the worst it’s been since long before DLTR first bought Family Dollar in 2015. The Family Dollar business has eroded to the point where it’s almost meaningless to both the P&L and the stock’s valuation, and the ‘break the buck’ decision tree at Dollar Tree is slowly – and I mean slowly – progressing. In fact we recently visited DLTR stores in Dallas that are part of the ‘Dollar Tree Plus’ test and have incremental thoughts (and pictures) on how that is progressing (hint: it needs a shot in the arm). We’re presenting a BlackBook on Monday February 3rd at 2PM EST to review the bull vs bear setup on this name, and what needs to be done to unlock value. We still think that a successful ‘buck break’ at DLTR is worth a double in the share price from here – though another activist may need to hold management’s feet to the fire to get it done. Either way, it’s clear that this name needs a real research deep dive call, and we’ll subsequently be reviewing the TRADE, TREND, and TAIL setups for both segments of the company to fully vet whether it remains worthy of Best Idea status, or whether the market's increasingly bearish stance is correct.

Call Details
Date/Time: Monday, Feb 3rd at 2PM EST
Toll Free:
Toll:
UK: 0
Confirmation Number: 13698523
Live Video Link: CLICK HERE