Thu, May 21, 9:17 AM
- New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
- Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
- Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
- The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
- See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
Wed, May 13, 12:24 PM
- Amherst Pierpont has a positive take on today's U.S. Retail Sales report, noting the upward adjustment to March nearly offsets the April shortfall.
- "This is nothing that could not be easily fixed with another modest upward revision a month from now," reads a note from the trading firm.
- Capital Economist's Paul Ashworth is bearish on the report. The economist says the weak monthly tally calls into question if cold weather was truly behind the soft consumer spending seen in February and March.
- The National Retail Federation points to the "anemic" growth seen in the year-over-year retail sales compares.
- Retail giants Wal-Mart (WMT -0.9%), Target (TGT -0.8%), and Costco (COST -0.4%) are all lower on the day.
- Dollar General (DG -1.2%) and Dollar Tree (DLTR -1.1%) are also out of favor.
- Previously: Retail sales continue to slow
- Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, IYC, FXD, FDIS, SCC, UCC, RCD, PMR, UGE, SZK.
Fri, Apr. 10, 11:55 AM
- Sales per shopper increased 5.8% Y/Y in March at retail chains, according to data from RetailNext.
- Average transaction value was up 3.5%, while the number of conversions improved by 0.9%
- Total sales were off 3.2% on a 8.2% drop in traffic amid a problematic month for weather. The tallies don't include e-commerce.
- Higher-end store chains such as Lululemon (LULU -0.5%), Tiffany (TIF +0.3%), and Williams-Sonoma (WSM +0.5%) can benefit from the trend toward highly-focused shoppers - while traffic-dependent chains such as Family Dollar (FDO +0.1%), Dollar General (DG +0.6%), and Dollar Tree (DLTR +0.4%) rely on the impulse buys churned up by increased traffic.
Tue, Apr. 7, 5:49 PM
- Dollar Tree (NASDAQ:DLTR) says that the FTC has "substantially completed" its review of the company's $8.5B acquisition of Family Dollar (NYSE:FDO) and has identified about 340 stores to be divested, from a pool of about 500 locations reviewed.
- All or nearly all of the divestments should be Family Dollar stores, which the combined entity would sell to one or more of "multiple" interested buyers who would operate them as dollar stores. It was the low number of divestitures that prompted FDO shareholders to take a lower offer from Dollar Tree vs. the bid from Dollar General (NYSE:DG).
- In its 8-K, Dollar Tree says it hopes to close the merger in May.
- Family Dollar is part of earnings season's kickoff tomorrow, reporting before the bell. Analysts expect EPS of $0.73 on $2.8B in revenues.
- After hours: DLTR -0.7%.
- Previously: Dollar Tree says FTC reviewing more stores (Feb. 03 2015)
- Previously: Deal done: Dollar Tree lands Family Dollar (Jan. 22 2015)
Wed, Apr. 1, 8:38 AM
- Discounters could face some increased pricing competition from Wal-Mart (NYSE:WMT) after the retail giant ratcheted up pressure on suppliers to reduce prices.
- The news from Bentonville might also create some headaches for large consumer products sellers such as Procter & Gamble (NYSE:PG) and Kimberly-Clark (NYSE:KMB) which have struggled with pushing back against Wal-Mart's formidable leverage.
- On margin watch: Dollar Tree (NASDAQ:DLTR), Family Dollar (NYSE:FDO), Dollar General (NYSE:DG), Fred's (NASDAQ:FRED), Big Lots (NYSE:BIG), Five Below (NASDAQ:FIVE).
- Previously: Wal-Mart steps up pressure on suppliers to slash prices
Thu, Mar. 12, 9:47 AM
- Shares of Dollar Tree (DLTR +1.6%), Target (TGT +1.1%), Wal-Mart (WMT +1.1%), Fred's (FRED +1.1%), and Five Below (FIVE +1.6%) are picking up steam after Dollar General's (DG +2.7%) quarterly reports shows some broad strength across categories.
- Despite the headline miss on U.S. retail sales earlier, the S&P Retail (NYSEARCA:XRT) is up 1.12% to outpace the S&P 500.
- Analysts think lower-income consumer spending is gaining momentum based on the most recent reads from discounters such as Dollar General.
- Previously: New buybacks and store growth on tap for Dollar General
Thu, Mar. 12, 7:28 AM
- Dollar General (NYSE:DG) announces David Tehle will retire as CFO on July 1, 2015.
- The company says it will consider both internal and external candidates for the position.
- Previously: Dollar General EPS in-line, misses on revenue
- Previously: New buybacks and store growth on tap for Dollar General
Thu, Mar. 12, 7:25 AM
- Dollar General (NYSE:DG) reports same-store sales rose 4.9% in Q4.
- Categories cited as strong during the quarter included candy/snacks, tobacco, perishables, and health care.
- Gross profit rate -20 bps to 31.7%.
- Operating profit -50 bps to 11.47%.
- The West Coast port slowdown was a $0.02 drag on earnings.
- Guidance: Total sales growth of +8% to +9% forecast. The company expects EPS growth of 10% to 13% in 2015. Store openings will be accelerated to a level where square footage growth of 7% expected.
- Buybacks: The board approved another $1B in share repurchases to bring the total buyback allowance to over $1.2B.
- DG -1.8% premarket.
Thu, Mar. 12, 7:01 AM
Wed, Mar. 11, 5:30 PM
Fri, Feb. 27, 11:31 AM
- Factset has compiled a list of the most popular holdings of hedge funds at the end of Q4 and which stocks fell in or out of favor within the group.
- Overall, hedge funds increased their positions in the top 50 holdings during the quarter by 1%.
- Top 50 hedge fund consumer staples/discretionary stocks showing an increase: Family Dollar (NYSE:FDO) +1.3%, PepsiCo (NYSE:PEP) +20.3%, Priceline Group (NASDAQ:PCLN) +24.2%, Delta Air Lines (NYSE:DAL) +15.3%.
- Top 50 hedge fund consumer staples/discretionary stocks showing a decrease: Mastercard (NYSE:MA) -4.2%, Walgreen Boots Alliance (NASDAQ:WBA) -1.3%, Dollar General (NYSE:DG) -11.6%, Mondelez International (NASDAQ:MDLZ) -0.9%.
- Another way to look at the list is to examine which stocks are missing. Coca-Cola (NYSE:KO), Wal-Mart (NYSE:WMT), and Procter & Gamble (NYSE:PG) are in that club.
- Factset's hedge fund ownership report (.pdf)
Mon, Feb. 23, 9:06 AM
Sat, Feb. 14, 9:36 AM
- Dollar General (NYSE:DG) could be a bargain at current levels, observes Barron's.
- Analysts think the company's failed attempt to land Family Dollar leaves it lean and in a better position to grow same-store sales than the Dollar Tree-Family Dollar combination.
- Merger-related expenses should also start to trail off.
- DG trades at 16.9X expected 2015 earnings, a valuation which might not fully factor in today's $2 gas environment and the improved employment situation in the U.S.
- The discounter is expected to report FQ4 earnings on March 19 with analysts calling for revenue of $4.955B and EPS of $1.17. Any improvement over FQ3's comp growth of 2.8% could help to reset expectations.
- YTD: DG -2.66% vs. S&P Retail ETF +2.09%.
Thu, Feb. 5, 9:08 AM
- Kraft Foods (NASDAQ:KRFT) has found a vibrant channel for its Velveeta brand in dollar stores.
- The company was very close to pulling the plug on the product last year amid soft grocery store sales.
- General Mills (NYSE:GIS) and Campbell Soup (NYSE:CPB) are also exploring selling more brands in dollar stores due to the potential for higher profit margins in certain categories.
- The development could aid the dollar store group (DLTR, DG, FDO) which has lost some quick-stop grocery market share to convenience stores.
Tue, Feb. 3, 5:44 PM
- Dollar Tree (NASDAQ:DLTR) says it has learned the FTC is reviewing more than 500 stores as it scrutinizes its plan to acquire Family Dollar (NYSE:FDO), after previously believing that the FTC would require the divestiture of no more than ~300 stores, according to an SEC filing.
- Despite the caution, DLTR still expects the total number of divestitures to be about 300, and hopes to reach an agreement with the FTC by the end of the month.
- FDO shareholders approved a deal last month to be sold to DLTR, choosing regulatory certainty over a riskier but higher offer from Dollar General (NYSE:DG).
Thu, Jan. 22, 9:38 AM
- Shareholders with Family Dollar (NYSE:FDO) have approved the merger offer from Dollar Tree (DLTR +1.8%) as expected.
- 74% of shareholders approved the merger of the discounters.
- FDO trades at $76.20 vs. the buyout price of $74.50.
- Shares of Dollar General (NYSE:DG) are taking the news well, up 2.4% in early trading.
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