Recent Buy

I wrote recently about three reasonably priced stocks in today’s elevated stock market. While drafting the article and researching some of the companies therein, I decided to purchase additional equity in one of these companies after yet another drop in the price shares commanded on the open market this past Friday.

This drop is fairly warranted, as I’ll discuss below. However, it’s important to remember that while it’s easy to purchase stocks when euphoria is widespread, it’s much more difficult to invest in a company when it’s facing issues or it’s unpopular for any myriad of reasons.

I purchased 25 shares of Target Corporation (TGT) on 1/10/13 for $62.50 per share.

Target Corporation is a retailer that was incorporated in 1902. It currently operates in two segments: U.S. Retail and Canadian.

I’ve talked about Target a lot around here lately, and that’s because I think it’s doing a lot of things right for the long-term, while also facing a lot of near-term uncertainty which is causing its share price to flounder. In addition, the company recently became the victim of a massive data breach when hackers stole the data and credit card information of 70 million customers.

Shares in Target have not done particularly well over the last year, up only about 4% when the broader market is up some 30%. However, it’s exactly this kind of underperformance that sparks my interest as a value investor.

The share price weakness is warranted due international expansion in Canada getting off to a slow start. Apparently, customer volume has been promising, but higher-than-expected prices and issues with merchandise stock have left a sour taste in the mouths of some Canadian shoppers. The slower start in Canada has forced Target to slash full-year guidance and has led to EPS dilution. After third quarter results came in weaker than expected TGT shares fell fairly precipitously and haven’t really recovered since. And then shortly thereafter the news about the data breach broke.

Combine these two issues and you have the recipe for a stock sale. However, I don’t think either of these will result in long-term problems for the company. Issues like a data breach aren’t typically remembered a year or two after they happen, and as long as Target can make sure this isn’t a recurring issue I think they’ll be fine. Case in point: remember the theft of data from 45 million credit and debit cards that The TJX Companies, Inc. (TJX) reported back in 2007? Neither do I.  In addition, I anticipate the stores in Canada eventually becoming a bigger part of the story as the company does a better job stocking shelves and figures out marketing strategies to best align the experience they offer with shopper’s needs.

While TGT shares aren’t especially cheap here, I think they offer a fairly decent value for the long-term investor. And while I expected the drop in share prices to be even more aggressive after the data breach news came out, I’ll take the opportunity to purchase cheaper shares when I can get them – especially in a hot stock market like we have right now. I initiated a position in Target back in November for $66.50 per share, so I was fairly excited to see TGT take a hit and give me the chance to average down on my purchase price.

And while TGT shares aren’t particularly popular right now, the fact is that they’re still a great retailer that offers shoppers a unique, upscale experience with a specialty in home goods and chic-for-less. And the assets they’re building out in Canada aren’t going to go away. These are high quality assets in relatively affluent and populous areas like Toronto and Vancouver. And let’s not forget this is still new for Target. I don’t think any business expects to expand into an unfamiliar area and just start dominating right out of the gate. These plans take time, and luckily as a long-term investor I’ve got that in spades. In the meanwhile, I’m paid to wait with a 2.75% yield and Target gets to repurchase shares at cheaper levels, thereby increasing my ownership stake even further.

This purchase doubled my stake in Target, and puts it on a similar weighting with my position in the other retailer I’ve invested in – Wal-Mart Stores, Inc. (WMT). Going forward, I think having an equal weighting in both companies makes sense for me as they both offer compelling but different reasons for investment.

Target is currently trading hands for a P/E of 16.80. The debt/equity ratio is reasonable at 0.8. The company has a track record of operational excellence, with an EPS compound annual growth rate of 8.76% from fiscal years 2004-2013. S&P Capital IQ is predicting 8% CAGR in EPS over the next 3 years, which is similar to what the company has been able to acheive over the last decade. Target has been great about rewarding shareholders, with both buybacks and dividend raises. The company boasts a 46-year dividend growth record, with a 10-year dividend growth rate of 18.6%. With a payout ratio of just 43% on lower earnings, I think the company has plenty of ammo with which to continue raising the dividend. And the buybacks have been robust, reducing share count from almost 755 million in 2009 to just over 633 million today.

I performed a Dividend Discount Model analysis on shares to get a quantitative take on the valuation. I used a 10% discount rate and a long-term 8% growth rate (well below the historical norm), which gave me a fair value on shares of $92.88. Slowing the growth rate down further to 7% and you get a fair value of $61.35. So obviously you have to hope the company is able to continue growing earnings and the dividend at a rather robust rate, but I think the truth probably lies somewhere in the middle of these numbers.

This purchase adds $43.00 to my annual dividend income total based on the current quarterly payout of $0.43.

My portfolio still holds 43 positions, as this was an addition to a current investment.

I’m going to include current analyst valuation opinions below, as I use these to concentrate my reasonable valuation estimate.

*Morningstar rates TGT as a 3/5 star value, with a fair value estimate of $64.00.
*S&P Capital IQ rates TGT as a 3/5 star Hold, with a fair value calculation of $70.50.

I’ll update my Freedom Fund in early February to reflect my recent addition.

Full Disclosure: Long TGT, WMT

What are you buying right now? See any compelling values in the market? A fan of TGT at today’s prices?

Thanks for reading.

Photo Credit: Stuart Miles/FreeDigitalPhotos.net

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72 Comments

  1. DM,

    Awesome purchase. I had a feeling after your “3 reasonably priced stocks” article you might be telegraphing a purchase. Congrats. Target is a wide moat company and should be an excellent investment. I am going to make a purchase before the end of the month but I can’t decide between UL, CVX, PM, and T. So many great companies, so little capital.

  2. That’s a great buy. I just bought a bundle of shares of TGT today as well! I plan on buying WFC, BP, WMT, and some others in the weeks to come.

    Let’s hope these buying opportunities last a bit longer so we can all jump on them!

  3. FFdividend,

    Averaging down is wonderful. I love buying additional equity in a company for less than I originally paid. 🙂

    I think you’ve got a great idea there with PM. PM is trading well above my cost basis and it’s still one of my largest positions. However, it’s still quite tempting at these prices!

    Best regards.

  4. Dividend Pipeline,

    You nailed it. It was actually while I was writing the article and researching the numbers that I talked myself into buying more TGT shares. And the drop on Friday compelled me to take action on my thesis.

    I think you’ve got some winners on your list there. They all look good. T offers a really nice yield, but you have to love the growth with the other three. All very nice in their own respective ways.

    Best wishes.

  5. Spoonman,

    Glad to see we were on the same page regarding Target. I think we’ll do well here.

    It’s good to have a shopping list handy and some capital available. Who needs Rodeo Drive when we’ve got the stock market?

    Cheers!

  6. Good buy with Target at these prices. I believe Target grow slowly for a bit but will grow at a faster rate when Canadians go to their stores more. Zellers, which was the main competitor to Walmart here in Canada was not doing so well so people gravitated towards Walmart. I believe all the Zellers stores become a Walmart or Target here.

  7. Nice buy. I have been adding Target recently also. It’s great when you can average down on a position. I think these prices will look cheap in 10 years. I don’t mind and even welcome the short-term volatility due to a couple of temporary issues. It allows us patient investors to capitalize on these opportunities.

    Take care

  8. Congratulations on the purchase. I planned to pickup TGT today, but purchased T, USB and UL instead.

  9. Sorry about the double post. I have a keyboard that is going hay wire. I hope to purchase TGT next pay period. Congratulations again on the buy.

  10. Still a big fan of HCN a health care REIT. Rising interest rates hammered the stock last year but’s it’s looking like it’s rallying this year. TGT looks good but you need the lawsuits to come which will weigh the stock more. Once it goes to court than it will be a good buy as a settlement will lead to a rally.

  11. I like the TGT purchase. I wish I could have been adding on this dip and might make a move to add to my position even though it’s a bit overweight and we might be adding a rental property to the mix. Either way, TGT should be just fine in the long-term. I remembered hearing about the issue with TJX but I couldn’t have pulled that off the top of my head. It’s like the huge Mexican bribery scandal by WMT ~2 years ago. Does anyone remember that without reading something to jog their memory about it? Since the WMT continues to perform well as a company so I’ll just keep holding on and look to add more shares.

  12. Nice buy – I’m looking at TGT as well, but actually looking for a little bit more of a decrease. I do like it at current valuations but I think it might have a little downside wiggle room still.

  13. Nice buy. I got some of the beaten down TGT too, which is great for when it picks itself up.

    Have you tried that new service by the way that DGI called out – Loyal3? TGT is listed on there, and you can get credit card points / cash back. Its pretty easy to transfer out of that account too and into a regular brokerage.

    Every point / dollar back counts!

  14. I remember reading a chapter in The Habit Loop about Target, and was amazed at their proficiency with data analysis. They seem like a sound company that is just going through a rough time. Might be a great time to buy, though I am terrible with market timing…and probably just jinxed the purchase. 🙂

  15. Well done Jason ! Personally I would like to buy some but around 56.— or lower hopefully. How I wish I were right. As for now I will initiate a position in your famous BAX. Thanks for your good ideas. Good luck !

  16. Just don’t think that the growth in Canada will be that significant. Even during the Christmas season, the crowds were unimpressive. There was a huge let-down when the stores opened and the established stores quickly gave a sigh of relief. Quite frankly, our local store here near Toronto stinks, literally! It had a bad odour that hasn’t left yet. cannot define it, but my necessary trips in have been under physical duress. Something in the construction materials. (left the u in odour to prove im from Canada) Seriously, going to take a look at the Stock. Thanks

  17. what do you guys think about adding/buying T, QCOM, MSFT and CSCO at these price levels ?

    The other one which looks interesting is GIS. What do you think about GIS ?

  18. Pursuits,

    I hope you’re right. I can’t imagine the assets that Target has in Canada completely bombing out over the long haul, however even if that’s true I don’t think they’re doomed. It’s not like they’re going to live and die by the sword of Canada.

    We shall see how it all plays out. I’m optimistic. 🙂

    Best regards.

  19. Hans,

    Thanks for stopping by and offering up some perspective. I really appreciate that.

    It’s a bit disappointing to see how badly the roll out has gone in Canada. I’m surprised by that. However, Target has the tools and management in place to correct this. And like I said above, even if they don’t I think the company will still be fine over the long haul.

    Best wishes!

  20. AAI,

    I agree. Short-term issues are a blessing for the long-term investor. Of course, this is only true if you capitalize on these opportunities and buy shares in a beaten down company at cheaper prices. And, of course, this is only true if the issues are not fundamental problems with the company but rather transient problems that can be rectified.

    Happy shopping, and have fun averaging down. 🙂

    Best wishes.

  21. CI,

    Glad to see we’re on the same page. 🙂

    I don’t think TGT is going to pop anytime soon, so hopefully you get your chance to buy. I’m surprised TGT didn’t fall much more after the data breach news came out, but it was still enough for me to healthily average down.

    Best regards!

  22. Charles,

    I think TJX ended up spending somewhere around $300 million to clear up claims and issues regarding their data theft. It was a bit different than Target’s, and smaller. However, I can’t see Target having major financial problems as a result of this. We’re still unclear as to how much financial loss will result from this. I suppose I maybe could have insisted on a bigger margin of safety due to the data loss concerns, but the issues in Canada are, in my opinion, going to be more of a pressing concern in the short-term as far as EPS dilution. I think that’s the bigger story for right now, but we’ll see how everything plays out. In the end, I’m planning on holding for many years to come so I think time will be on my side.

    Cheers!

  23. Aspenhawk,

    Nice buy on BAX. I spent a lot of time pouring over financial statements and annual reports with Baxter, and really liked what I seen. I wouldn’t mind increasing my position there, but it’s a tad more expensive than when I bought it. I think you’ll do well with that company. 🙂

    Take care!

  24. Pursuit,

    Exciting times for you and the wife with the rental property search. I’m rooting for you guys. 🙂

    WMT’s bribery scandal was another example of a short-term blip that offered a great buying opportunity. I think that was probably even a better opportunity because it didn’t really cause any loss to earnings power, whereas TGT is currently struggling with EPS growth due to issues in Canada. I didn’t add to my WMT back then because I already felt comfortable with my position size and it was my only retailer. I probably should have temporarily allocated an overweight position to WMT back then.

    Best wishes.

  25. Matt,

    You may very well be right. If it falls significantly from here I’d be inclined to temporarily increase my weighting to TGT and buy a little more. I think TGT in the mid-$50s offers a lot of value.

    I hope we get there, though, so you can get a solid deal on Target stock. 🙂

    Take care.

  26. Dividend Gremlin,

    I looked at Loyal3. I’m not sold. There was a push a while back for free commissions and that ended. Zecco was one of the bigger players in that space, and they stopped offering free trades a couple of years ago. I think the odds are strong that once Loyal3 has a solid customer base (after stealing customers away from other brokerages with their free trade offer) they’ll likely start charging for fees as well. It’s all about growth, growth, growth.

    I also don’t feel comfortable with having thousands of dollars with a relatively new company. I’d just prefer to stick with a more established player, if possible. Not that this is necessarily less risky, but I feel better with one of the bigger brokerages.

    Just my personal thoughts on this. 🙂

    Best regards.

  27. DB40,

    I appreciate the perspective. Very cool information there. I remember reading about Wal-Mart’s logistics a while back and I was astounded. The amount of information going back and forth within that company is amazing. It’s really crazy what some of these big companies have to do to stay competitive and relevant. It reminds me how lucky I am as a shareholder who gets to just sit back and collect my dividends. 🙂

    Best wishes!

  28. Anonymous,

    I just wrote about GIS in my last article. I think it’s reasonably priced here, and offers a solid stable of brand name products.

    I’m not big into tech, and you’ll see tech lightly represented in my portfolio. I’m just not smart enough to predict tech trends and/or understand all of the technology behind some of these companies. That being said, I do like T and am long. I think it’s an okay purchase here. Solid yield, but obviously the dividend growth leaves a lot to be desired.

    Take care.

  29. D-S,

    I hope stocks go down a little between now and February. I’d love to see you be able to jump on some cheap stocks with fresh capital! I’ll keep my fingers crossed for us both. 🙂

    Best wishes!

  30. Hi DM,

    To get the valuation estimates from Mornigstar and S&P Capital IQ, do you have to subscribe to both pages?

    Regards,

  31. Keep up the great work DM. I love this blog. I bought BB&T last week, not in your strategy but I like regional banks this year. I bought GIS, LEG, SAN, TGT and NBG(not divy stock but this is my speculative play for the year) in the last couple months. I’ve been looking at PM hard, I’m just so hesitant because don’t you think regulation could destroy this stock and then it’s divy?
    -Jersey Jerry

  32. Sergio,

    Morningstar doesn’t charge for this information. You can find it under the “Industry Peers” tab just right of the “Overview” tab after quoting a stock.

    S&P Capital IQ may charge. I get the information for free through my Scottrade account. Most brokerages offer access to analyst information for free as part of their research platforms.

    I hope this helps.

    Best regards.

  33. Anonymous,

    I don’t mind regional banks, if the price and fundamentals are right. I actually invested in SBSI a while back – a small, regional bank based out of Texas.

    As far as PM goes, I don’t think it’s going away anytime soon. Regulation will be a force, but they’re well diversified throughout the world and no one region will destroy the company. I think they’ll be fine, however it will be interesting to see how their new e-cig products fare when released.

    Take care.

  34. Good work on your increase in yearly dividend income!
    In an attempt to increase my own dividend income I have been adding to my position in TGS Nopec about two weeks ago. I am now looking to increase my stake in KWG (a german small cap, which does not pay a dividend).

  35. Thanks …

    The other ones I have been watching and trying to add but they keep running away or when I do get a chance I dont have the funds. The target price is still higher for these two.

    CVX
    MMM (has run up too much too fast but target is higher)

    Need some safety of margin so scared to buy here but they keep going higher. Whats your opinion at these quite high prices 🙂

  36. I like T and GIS and actually purchased both in the last few weeks. Tech scares me a tad, since it can change pretty kick with disruptors (aka companies with newer technology). I’m betting Cheerios will be around quite a bit longer than smart phones. Just my opinion, I’m not the sharpest tool in the shed though. lol

  37. A good purchase at a good price.
    There is nothing to complain about!
    43 USD more on the way to freedom!

    I can only buy shares in early February, when the salary is on my bank account.
    I hope the market goes down until then…

    regards
    D-S

  38. Yeah I agree. I have been looking at BAX the last few days as well. Glad to hear others like the company.

  39. I actually just started an account with them. I wanted to DRIP Berkshire Hathaway, so Loyal3 worked for me. I’m very paranoid sending my money to any brokerage (Berney Madoff). I’m only doing $50 per month, so it is not that big of a deal. After 2 years I will just roll it to the transfer agent and get paper shares. I honestly don’t trust any brokerage company. I guess I have watched too many CNBC episodes on greed and scams. I currently use 3 different brokers for a rather small portfolio and still don’t feel 100% secure with them. I want to be registered with the company as an owner. As Warren Buffet said, “When the tide goes out you find out who were swimming naked (or something like that….). I will always hedge my risk with multiple brokerages. GL

  40. the troubled investor,

    Hmm, I haven’t heard of those companies but if they look fundamentally sound and offer great value and growing income then I’m sure you’ll do very well. 🙂

    Best of luck with your investments!

    Cheers.

  41. Anonymous,

    3M looks a little expensive right now, but that’s not to say it wouldn’t be a fantastic investment at today’s prices. I’ve passed on CL and ADP in the past due to valuation concerns and I missed out.

    I think CVX looks solid here, and I wouldn’t mind buying at all. If it were between CVX and MMM and my portfolio had the room I would choose the former over the latter.

    Best of luck!

    Cheers.

  42. Monty,

    I like your idea of hedging your risk with multiple brokerages. I plan on doing the same here very soon. Once my portfolio crosses $150k or so I’ll be actively shopping for a second brokerage. Right now, I’m looking at TD Ameritrade, Fidelity and Charles Schwab.

    You can never be too safe, in my opinion.

    Best wishes.

  43. Monty,

    CL is one stock that I’ve decided I’m going to stretch a bit for, because it seems like it’s never at the price I think it’s worth. However, that being said I have to remain reasonable. And I don’t think the price CL shares are commanding today is reasonable. A P/E of 24 or so and we might be talking.

    Nice buy on CVX. I think it’s attractive here, but it’s one of my larger energy holdings and energy as a sector represents a pretty solid chunk of my portfolio here.

    Best regards.

  44. Thanks DM, Monty.

    I am ready to pull the trigger on CVX, would have liked it at $110 but who knows, so going to add half a position and if it goes to $110 then add the other half but its very hard to sit with the funds for the price you want, which may or may not come. I will wait for MMM.

    DM, you have some nice solid portfolio there. I also do have XOM and glad bought it earlier when it was in the 80s

  45. Yeah they can call me paranoid, but I have worked hard for too many years for my investments. I’m an organized personality type, which makes it rough with multiple brokerages. I overcome this by having one sheet that I keep track of. I actually take an oddball approach and only use drip companies. Whether its $50 or $1000 investments. I don’t like how I cant time my buys, but in all reality a few dollars one way or the other doesn’t mean much over 20 years. Since TGT is cheap now I will initiate a buy next week and I wont mind if its 50 cents above or below what I wanted to purchase it for. Most undervalued companies don’t pop in one day. I did get smacked down on BBL today. I put an order in on the 15th and it went up $4 in one day. I have had the opposite happen though as well, so it’s all good I used to use Scottrade, which I prefer, but I have a problem with selling on any descent profits. This isn’t good for investing, so computershare and wells make it much less convenient to sell. Now I just buy it and forget. I don’t even keep track of what I paid for the stocks. I know this definitely isn’t ideal, but I have to tailor my investment strategy to force me to not try and turn a quick profit. You are getting a pretty good stack of stocks. It wouldn’t hurt to try another company, especially since shares can be transferred in a day or two to another brokerage. I wanted my shares transferred where the stocks were in my name so Scottrade had them to Computershare and Wells Shareowner with in 2 days. I actually had quite a few of them put into certificate form to frame and hang on my wall. I like my Berkshire Hathaway B the most. Some of these stock certificates look amazing and can be addictive to collect. Well enough rambling from me.

  46. I really want to purchase a descent amount of CL, but it seems very expensive to me at the moment. What are your thoughts on its current valuation?

  47. Anon. I’m actually thinking CVX is looking stout at the moment. I know the refiners are getting smacked down right now so it wouldn’t surprise me if it goes lower, but CVX is a beast. I think they will be raising dividends in a few months as well, which should give it a great yield. I actually just purchased around 20 shares, with computershare, and was happy that its now in the $118 range. I was going to buy at $120, but the computershare delay is helping me out this time.

  48. I have a hard time justifying investing in any big retailers-with the exception of WMT–going forward if we are looking long term…the younger generation is buying online now, and that trend will continue to grow.

  49. Monty – I like it too for buying TGT (and UL of late). I do exactly what you do, initiate some buys, then plan to transfer them over. Also dislike the timing aspect, but with my job I don’t get a chance to time it much anyways.

    DM – I think you are smart to get a second firm once you have the size to make it count. And you are spot on, I don’t feel comfortable with tons of cash in Loyal3. Rather I plan to buy securities and move them every few months to my standard broker (Sharebuilder in this case). That process is easy and through Sharebuilder, barely deal with Loyal3. And those points on my card are like getting a better investment – due to the points (or whatever your card earns you).

    And if they ever stop offering free trades, well no big deal, at least I will squeeze something out of their mistake.

  50. Anonymous, I am also slightly concerned about what you pointed out. Will Target be able to grow at a similar rate 15-20-25 years from now? That said, as Dividend Growth Investors, a company like Amazon unfortunately doesn’t fit the bill of what we look for. I certainly don’t see them (Target) going out of business, but I am slightly nervous about them being a company that I buy and “never worry about”. That said, I bought a few shares myself, so guess we’ll see 🙂

  51. Anonymous,

    I can’t say I blame you there. However, I don’t think retailing is a zero-sum game. Amazon’s gains are not necessarily all WMT and TGT losses. I think there’s room in the world for more than just Amazon, and perhaps the move into grocery is smart for Target, as it’s tough to buy groceries online (at least right now). I understand Amazon is trying to expand that end of their market, but I’m a fairly young guy (you spoke of the younger generation) and I have no desire to buy groceries online and have them delivered.

    I also have a bit of a theory, and it’s tough to really quantify this. But I kind of think there’s going to be a critical mass with online shopping where it ultimately culminates with people wanting to go out and interact with other humans. I just think if the world is going to this place where people work online, shop online, play games online, watch movies online and everything else…you have to wonder what that means for the human race.

    Just some personal thoughts.

    Best wishes!

  52. Anonymous,

    I don’t necessarily see retailers as a buy-and-forget type stock, although I don’t really feel that way about any of my investments. Though I hope to hold many of them for many decades to come, that’s not to say that if the fundamentals change negatively for any one of them that I wouldn’t sell. But buy-and-monitor is perhaps even more appropriate for retailers simply because of the fact that history is littered with boom-and-bust retailers like Sears, Kmart, etc.

    Best regards.

  53. It is really encouraging to hear you say that you don’t see retailers as buy and forget stocks. Not to say that you are not making a fair purchase in TGT at these valuations, I just think you are telling yourself a lot of what you need to hear in an environment where 99.5% of the market is over-priced. I’d rather sit on some cash and wait. The issue I have with TGT is that they really have no moat. WMT leaves a huge wake, and bobbing around in that wake is where TGT exists, and you cannot under estimate that. I’ve been following your portfolio and think you have made some wise purchases, this one just doesn’t have enough upside for me. Maybe at $55 I’d swing my opinion….

  54. moneycone,

    Thanks! I appreciate the support.

    I don’t know if there’s blood in the streets yet, but the negativity surrounding Target stock is pretty evident right now. I think they’ll be fine, but, of course, you never know. That’s why diversification comes in handy.

    Cheers!

  55. Anonymous,

    I hear what you’re saying here. I don’t necessarily think I’m stretching with TGT, or trying to talk myself into buying it. I wasn’t rushing to invest money, and actually am a bit light on capital right now after the car purchase and a root canal I recently had done. I thought about TGT for a while and really looked at the numbers. EPS has taken a nice hit, which is causing the P/E to rise which makes the stock look at bit more expensive than it really is. I think once earnings normalize – which may take a while – the stock will recover. However, there are certainly issues in the meantime. However, isn’t that exactly when we want to buy a high quality stock?

    I honestly think the bigger issue facing TGT isn’t the credit card fraud fiasco or the foray into Canada, but the potential changes in the landscape of retailing and the move into online shopping. And I say that because that’s a long-term trend, rather than the other issues which can be cleared up and optimized. We’ll see how it goes, but I think TGT (and WMT) can certainly improve its online presence, which should help stem some of the loss in market share from the likes of Amazon.

    We’ll see. I don’t think every investment I make will be spectacular, and some will turn out to be horrible. I take that chance every time I invest my hard earned cash with a company that is impossible for me to know completely inside and out. However, that’s why I continue to diversify. And, in the end, TGT will be a rather small part of my portfolio anyhow.

    Thanks for stopping by. I appreciate your thoughts. And TGT at $55 would be enticing. I would probably have to average down one last time at those levels.

    Best wishes.

  56. Hi, now we are at around $55 – do you still have ammo left? I’m thinking of starting a position in TGT but I totally froze on -2% day… 🙂

  57. Anonymous,

    I’m quite interested in averaging down on TGT shares again. I’ll have to see how much capital I have, as I expect my commission check later this week. However, I also have to set aside some capital for taxes (I’ll owe some). I’m quite excited to go shopping in a few days!

    Don’t worry what the market is doing. Focus on what you’re doing and what you need to do to accomplish your goals. That will help. 🙂

    Thanks for stopping by.

    Cheers!

  58. I started my position today on target given that the price is so attractive. I was wanting my first purchase to be Coke but this price seemed to be good value. This is my first purchase. 18 shares isn’t much but this is my starting point for my retirement/dividend portfolio. Thank you for your blog and I hope you keep it up.

  59. Shawn,

    Nice move there. I’m highly interested in adding to my position here. It’s just plain cheap right now.

    Don’t feel too bad about buying 18 shares. That’s still a lot of money, and by doing that alone you’re investing a lot more than most people. My purchase was not much more than yours. 🙂

    We all have to start somewhere. Rome wasn’t built in a day, and similarly my portfolio was built 18 shares at time just like yours. Keep it up!

    Best wishes.

  60. Good, succinct essay. I have some TGT via fee-free LOYAL3,and plan to hold long and sometimes add. I am, however, more concerned about their foray into Canada than I am about credit card security. Many Americans don’t really understand Canadian society (socialists!!!), when in fact they have better market choices than widely assumed. Their Costco’s, for example, offer things that can’t be found in US Costco’s – even though some of that merchandise was actually manufactured here in the US. I hope TGT management continues to gain a better understanding of their Canadian consumer targets (pardon the expression). And maybe they should use a blue target logo instead of red. Just a thought, eh?

  61. Frank T,

    I’m with you. I hope TGT improves their understanding of Canada’s consumers. I’m a bit surprised they’ve gotten off to such a bad start there, but I’m quite confident they can fix this in time. We’ll see how it goes!

    Thanks for stopping by and offering up the perspective. Much appreciated.

    Take care!

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