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Dollar Tree Posts Higher-Than-Expected Profits: TFN viewers score 26%-plus profits

Posted February 27, 2008

Baltimore — (TFN): Dollar Tree Stores Inc (DLTR) announced today that quarterly profit fell by 3 percent. But this drop in profits was due to there being one less week than in the year-earlier period. Still, results beat analysts' estimates, and the company's shares jumped by as much as 15 percent, crossing $30 in early-morning trading.

The deep-down discount retailer, which sells most of its merchandise for $1, said earnings for the fourth quarter ended on Feb. 2 declined to $94.7 million, or $1.04 per share, from $97.6 million, or 96 cents per share.

laura cadden, research director of TFN's Smart Trading Action AlertWe'd be amiss not to point out that DLTR was the featured TFN Hot Stock Pick of the Week on January 17, when TFN's Smart Trading Action Alert's research director Laura Cadden presented her research to our TFN regulars. (Don't believe us? See for yourself!) Those viewers who took Laura by her word to buy the stock "below $25" were able to buy the stock at around $23 per share. Laura wrote: "We see a 20% upside in the stock to materialize by the middle of the second quarter 2008."

Today's intraday highs have already vindicated her forecast… with potential gains of over 26%!

Ms Cadden's current recommendation: "We've hit our 20% goal over our achievable entry level. Based on my original calculations, a good sell price would be $32. The stock certainly has strong momentum, and there is no reason why revenues would not continue to grow. (After all it's a leap year and we have an additional day of sales over same quarter last year.) But a profit is a profit, and nobody has ever gone broke taking money off the table." Click here for today's DLTR profits update. 

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Posted by TFN-US · Filed Under News that Matters, US Stocks and Markets 

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