Target Corp (TGT)

It was hit by a data breach and the Canadian expansion. They executed very poorly in Canada and that hurt them. They came out with a bunch of things they want to do and if they execute well the stock will go higher. Their online business is doing quite well.

There have been a lot of problems. Have a new CEO. Thinks they are trying to sort out their problems. Good dividend yield of 3.54%. A great brand name. Trading at about 14X earnings. At these levels you will do well over the long term. A lot of the bad things have already been priced into the stock.

It came down because of credit card issues. Thinks this is the entry point to buy it and that it is worth in the mid $60s.

Two things hurt the stock: the problems in Canada and the fraudulent things with their credit cards. That is all priced into the company. 2.8% yield, 13 times earnings. You will see better returns in the company. Thinks Canada will flatten out and you will see better returns from it.

The credit card issue that they had and the Canadian business issues are already built into the stock price. Stock has been knocked down. 2.9% dividend yield. Trading at 14X earnings. This is an execution issue rather than a brand issue.

Looks cheap to him. Thinks they will continue to increase their dividend. People have trouble with their credit cards and he thinks the issue will be solved. Canada is not much of an issue because they are so big. A great brand name. Management is very strong in his view.

Sold his holdings because the cost to come into Canada eventually doubled from what they originally projected. They either underestimated or management didn’t have a firm hold on what the opportunity was in Canada. Sentiment has taken the stock lower. Retail sales were weaker than expected. Strong retailer and a very good franchise in things like the Red Car business. Until expectations come down, it is probably range bound and going nowhere.

Expenses coming into Canada were a lot higher than analysts initially projected. Sentiment of them coming into Canada has not been very positive. Feels they can be a player in the Canadian market over a longer period of time. High-quality retailer. Earnings estimates over the next couple of years could easily step up $7.50-$8 looking out to 2015-2016. On a valuation basis a very cheap retailer.

(A Top Pick June 3/13. Down 7.46%.) Having more trouble in Canada than expected. There had been a significant run on the stock, which he had caught. Well-run business but they reported weaker than expected same-store sales. There is probably a better entry point.

One of the big discount retailers in the US. Really good company. Has had a recent correction and thinks the stock will be in a trading range. Recently disappointed analysts which caused a selloff. Wait for a month and see how much further it falls.

Has been a great solid stock. Chart shows it has been in an uptrend for well over a year. It consolidates once in a while and looks like it is consolidating once again. For an entry point, you might want to wait for a test of the trend line.

Has done relatively well along with the consumer discretionary stocks. When going into consumer stocks, particularly outside of Canada, she wants to see more of an international presence. Thinks their move into Canada will be incremental to earnings over the next couple of years. This one, versus Walmart (WMT-N), also appeals to the higher middle income group.

A messy quarter. Sold off because of coming into Canada and tax issues plus the weather this spring. Thinks they will see growth after they get settled in Canada. Does a good job of focusing on who their customers are.

Great retailer. Expects the rollout in Canada to go quite well. She has not been buying into the retail space. Stocks are not that cheap right now. If you want exposure in the discount chain area, this is probably the best investment in the group.

His model price for this company is $66.64. This is a 5% differential. It has to break above $66 and if it does, he thinks the stock will go higher and has a chance to go to $91. Very low volatility. Would love to buy this name on any pullback.