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Stock Market & Financial Investment News

News Breaks
March 22, 2013
10:58 EDTWMT, DG, FDOFamily Dollar falls after analysts express opposite views
Two research firms expressed different opinions on Family Dollar (FDO) in notes to investors earlier today. Deutsche Bank upgraded the stock to Buy from Hold, while Citigroup downgraded the shares to Neutral from Buy. Fears about future declines in the discount retailer's margins have probably peaked, according to Deutsche Bank analyst Paul Trussell. The company's selling, general and administrative expenses disappointed investors in the first quarter of the company's fiscal year, but investors are now well aware of the headwinds that caused the situation and the problems should ease going forward, Trussell believes. Meanwhile, fears about a price war among dollar store companies is overdone, and Family Dollar is taking market share from Wal-Mart (WMT), according Deutsche's analyst, who added that Family Dollar has begun to benefit from tax refunds. Trussell expects the company's same-store sales to rise 4.3% in the second half of the year and he set a $71 price target on the shares. Conversely, Citigroup analyst Deborah Weinswig expects Family Dollar to have more difficulty beating analysts' earnings expectations going forward. The retailer's margins are likely to be hurt by stronger sales of less profitable items, according to the Citi analyst. Moreover, Family Dollar's "single store format" is hurting the company's ability to compete against Dollar General (DG), which has two expanded store formats, Weinswig wrote. She trimmed her price target on Family Dollar to $65 from $69. In mid-morning trading, Family Dollar fell 95c, or 1.5%, to $60.80.
News For FDO;DG;WMT From The Last 14 Days
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January 16, 2015
06:02 EDTDG, FDOFamily Dollar downgraded to Hold from Buy at Jefferies
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January 15, 2015
15:06 EDTDG, FDOFamily Dollar downgraded at Credit Suisse citing Dollar Tree progress on deal
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14:53 EDTFDOFamily Dollar downgraded to Neutral from Outperform at Credit Suisse
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11:20 EDTFDOFamily Dollar to host special shareholder meeting
Special shareholder meeting to vote on the merger with Dollar Tree will be held in Charlotte, NC on January 22 at 9 am.
09:24 EDTWMTEpiq Systems to hold a webinar
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09:15 EDTFDO, DGOn The Fly: Pre-market Movers
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08:08 EDTDG, FDODollar General says has held talks with various parties on stores
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08:07 EDTFDO, DGDollar General says 'chosen not to be constrained by timing agreement with FTC'
08:02 EDTDG, FDODollar General provides update on FTC review of proposed acquisition of Family Dollar
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07:28 EDTFDOFamily Dollar to host special shareholder meeting
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January 14, 2015
19:14 EDTFDOGlass Lewis recommends Family Dollar stockholders vote for Dollar Tree merger
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16:00 EDTWMTOptions Update; January 14, 2015
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10:40 EDTFDO, DGISS recommends Family Dollar stockholders vote 'for' merger with Dollar Tree
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10:39 EDTDG, FDOISS recommends Family Dollar stockholders vote 'for' merger with Dollar Tree
10:14 EDTDG, FDOISS recommends Family Dollar holders support Dollar Tree deal
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08:37 EDTFDO3D Systems says David Styka joins company as Chief Accounting Officer
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January 12, 2015
17:01 EDTFDOFred's names Michael Bloom COO
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07:35 EDTWMTNational Retail Federation to hold a trade show
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06:18 EDTFDOFamily Dollar sends letter to stockholders on proposed merger with Dollar Tree
Family Dollar (FDO), in a letter to its stockholders, explains the recommendation of the board that stockholders vote "FOR" the merger with Dollar Tree (DLTR). In the letter, Family Dollar CEO Howard Levine said, "I wanted to provide complete transparency to you regarding the most recent feedback that we have received from the FTC staff, which reaffirms the statements that we have been making for several months now about the inability of the Dollar General proposal to be consummated on the terms proposed by Dollar General and the certainty of the Dollar Tree merger... This existing economic analysis by the FTC will be refined in certain respects, but we see no basis to believe that, taken together, these refinements will result in a final divestiture number anywhere near the 1,500 stores that Dollar General has offered to divest. Importantly, the 3,500 to 4,000 store range does not include many additional divestitures that likely will be triggered by the well over 1,000 additional new or planned Dollar General and Family Dollar stores. The FTC staff plans to incorporate these stores into the same economic analysis, which will create new overlaps and exacerbate existing overlaps that have not yet created presumptions of requirements to divest. Going in the other direction, the FTC will incorporate into its economic analysis a modest number of competitorsí additional new or planned stores. We expect that the net impact of these two changes will be an increase in the store count... With respect to timing, in light of the thousands of stores at issue, we expect that the definitive number of divestitures that the FTC will actually require is not likely to be known by Family Dollar or Dollar General for several months... We expect Dollar Tree to continue to make rapid progress in completing the antitrust clearance process pursuant to its binding undertakings in the merger agreement, including its covenant to divest as many stores as necessary or advisable to obtain such clearance. In sum, antitrust clearance of the Dollar Tree merger on its terms and in a timely manner is a virtual certainty."
06:04 EDTFDODollar Tree provides update on FTC review of Family Dollar acquisition
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