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Two Ways: Ackman Paints Bulls Eye on Target

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Strengthen your portfolio in good times and bad.

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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

Economics

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.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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