Exiting Family Dollar at High Valuation
Family Dollar Stores (FDO) operates retail discount stores in the United States. It operates a chain of approximately 7,400 general merchandise retail discount stores in 45 states. The company was founded in 1959 and is based in Matthews, North Carolina.
[PostStockWidget stock_valuation="" pricetype="live" static_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'FDO'" symbolprices="84" div_align="right"]
On February 7, 2013 we signaled a low valuation in FDO at $56.00. Our initial target at that time was $70.00 which we anticipated reaching within a normal 12 to 18 months.
This week with the US economy on the mend, but consumers still tight on cash, the company announced positive earnings versus last quarter's guidance reduction for the year. A strong move on an "up" day, the stock hit our current High Valuation and we determined to take the profits and look elsewhere for the next Low Valuation signal.
Total Return for this trade reached 24.1% including $.52 in dividends accumulated since February.
EXIT FAMILY DOLLAR AT $69.00 (FDO, $69.00)