Someone please offer some explanation as to why this thing gets beat down so bad every time... Getting to a point where even some 10 year technicals are nearing lows. Every stock and their mother is up today, and this one can't even hold? Awful
This may be institutional selling causing this, you have to understand that 89% of DLTR is owned by institutions. the fiscal cliff arguments are causing a few of the major holders to sell while they have low tax rates (The fact that DLTR had earned so much for these funds over the last few years, even at $38 you still have a 50% gain if you bought it where i did at $50 pre split, meaning funds are still tax selling) I feel DLTR will continue these weird movements tell the announcement of a plan in washington.
Look at our #1 holder (FMR LLC), check the number but i think it was around 5 million shares sold last Q and it may still be them selling today. we wont know tell the end of the month but with holding 22mill shares still, if they were trying to half their position that means they have 8.5 million shares to sell this quarter. Us small time investors have no control over the stock, just buy it while its cheap and you will more than likely get a major return.
I purchased DLTR at $50 in Q1 of 2011. The P/E was around 15 they still have a great growth rate with a bonus of intense buybacks. Two years later we are back at the same point but the stock is still up over 50%. Don't underestimate the board of directors, they know exactly what they are doing.
Half my portfolio is in DLTR - My personal expected returns 19% annually for the next 5 years.
Sentiment: Strong Buy
It's because the market wants to give you an early Christmas gift. Fundamentals are sound. Here is what will happen. An article will probably come out saying: Dollar tree was oversold over the panic on DG. Then it will move back up to 39-40 a share. Easy money my friend.
Sentiment: Strong Buy
Thanks MG, I appreciate the positive attitude. However, I've been holding this stock for 14 months now at 37 and change, and could care less about a bump to 40 (no offense). I could have sold in the 50s but wanted to hit the 1 year mark because of taxes (long)... A 40% tax from a 25% gain sure looks a lot better at this point than being taxed 15% on zero. I guess it could be worse. I consider this a lesson learned.
I just don't understand the market some times. Even during August of last year which was a brutal beating to the market as a whole during Euro #$%$, DLTR wasn't hardly phased on the worst of days.... now the market has a fantastic day and it gets pushed down 4 times more than any of the worst days of August 2011?? It's total #$%$. Emotional sentiment and street view trump fundamental and technical indicators. Who says the damn thing HAS to touch a 52 week low before going back up, or HAS to drop below it's SMA. It's stupid. They put the dog in the dog-house, and leave it there to starve to death.