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Two Ways: Ackman Paints Bulls Eye on Target


Strengthen your portfolio in good times and bad.


Target Takeover

Activist investor Bill Ackman, head of Pershing Square Capital Management, is starting a proxy fight at Target (TGT). According to the Wall Street Journal, Ackman is planning to nominate himself and 4 other directors with experience in retail, real estate and credit cards to the discount retailer's board. Ackman's fund began to acquire Target stock 2 years ago, and now owns 7.8% of the company. Target has lost over half its value in that time, while Pershing Square has lost 90% due to leverage.

In response, Target said it will nominate for reelection 4 board members whose terms expire this year. The annual meeting is scheduled for May 28.

For trading context, see Professor Jeff Macke's Riding the Rally with Morgan, Goldman.

From the Bull Pen: In retail, the single name Professor Macke would consider as a long is Wal-Mart (WMT). One can set a sell stop below $47.

From the Bear Cave
: Bears can look to Sears Holdings (SHLD). Notice the stock met resistance at $40. Those attempting the downside can set a buy stop above that level.

Quick Check Around the World

Asian trading closed with the Hang Seng -0.76%, Nikkei 3.18%, India -0.89%, Taiwan 1.41% and Shanghai 3.02%.

Glancing towards Europe, we see the CAC –1.4%, DAX -1.13%, FTSE -1.00%

As of 8:00 AM EST, S&P Futures are trading -3 to 751, and Nasdaq futures are -3 to 1159.

A Look At Commodities

Crude oil is trading -0.01 to 47.34. Gold is +0.20 to 922.20. Silver is +3.00 to 12.920, and copper -0.75 to 173.95.

The dollar index is +0.17 to 87.5950.

On the Radar


08:30 Producer Price Index (MoM & YoY) 0.4%, -1.4%
08:30 PPI Ex Food and Energy (MoM & YoY) 0.1%, 3.8%
08:30 Housing Starts 453k
08:30 Building Permits 510k

Click here for the full trading radar.

Good luck, Minyans!

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No positions in stocks mentioned.

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