בס״ד

BULLSEYE! Target Corp in the Crosshairs; Meat for Dinner. (TGT)

Posted on July 4, 2021

We made 255% from our last dalliance with Target shares (NYSE:TGT), and the details of that endeavor can be found HERE.

Never satisfied, however, with just one helping of gooseflesh, we’re AGAIN zeroing in on this merchandiser of everything saleable in the hope of ultimately chowing down like a pack of Belgian she-wolves on the quarry.

Not ME!

There’s lots to commend the management and directorate of Target Stores… but the stock price is not connected to those efforts, so we can ignore them altogether.

In short, TGT is an overbought stock, regardless of what the underlying fundamentals may be.

And what, incidentally, are they?

Consider –

  • P/E is a (relatively) reasonable 20.15, though legacy bricks and mortar businesses generally don’t fetch that sort of multiple.
  • Dividend yield is 1.46%, which is better than nothing, while
  • Price to Book is a far-too-large 8.22.
  • Especially since analysts see flat to lower earnings for the twelve months ahead.

I’ll say…

All the more so, since much of what drove recent growth was management’s quick response to the Batflu caper, offering “drive-up” and same day delivery options before competitors caught on.

With a return to (the new) normal, we believe those ‘advantages’ will become superfluous.  Given the full range of retail spending opportunities, consumers will again spread out, and Target’s market share will diminish.

As the charts below show, the bulls have squeezed TGT stock for all it’s worth, and all that remains going forward – is reality.

Have a look at the daily –

Keep your eyes peeled, good Jews and Noahides, and ask the Holy One for help.

Only the Al-mighty Living G-d of Israel can decide in our favor.

With kind regards,

Hugh L. O’Haynew

 

4 responses to “BULLSEYE! Target Corp in the Crosshairs; Meat for Dinner. (TGT)”

  1. Gary Ziols says:

    As somewhat of a newbee to ajew&, i have a bunch of your trades tgt, carr, and otis in the hopper! When do i take action on tgt, carr, and otis, all are looking good as of today! Thanks Hugh, but I’ll save that for when cash is in the bank!

    • Hugh L. O'Haynew says:

      bs’d
      Hey Gary,
      Great to hear from you.
      Yup, those trades — and many others — are starting to look lively.
      With futures now flat to slightly higher, we’re recommending you leave them be for the time being.
      If there’s weakness today, feel free to close, but we’ll be out of commission, as the Holy Shabbos is fast approaching here in G-d’s Holy Land.
      We’ll review everything over the weekend and likely offer action on Monday, or possibly shortly thereafter.
      It appears there’s still downside in the hopper (to borrow a phrase). And we want to avail ourselves of as much of it as possible.
      However you choose, though, may you find favor in the eyes of the Holy One, Blessed Be He.
      Here’s to some robust profits!
      Shabbat Shalom!
      Huey

      • Gary Ziols says:

        I have 3 days left on the trade and wonder what action i should take on tgt. Tgt is near 230 as of yesterday close.

        • Hugh L. O'Haynew says:

          bs’d
          Hi Gary,
          Good to hear from you.
          Our feeling is that general weakness and trepidation heading into Friday’s expiry works in our favor.
          For that reason, we’re holding with the expectation that TGT will tumble between now and then.
          The Good Lord gave us all free choice, though, so far be it from us to dictate that you mask up and get vaxxed over TARGET. 😜
          For the record — we’re holding.
          All the best,
          Hugh

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