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alstry (< 20)

TARGET misses Target???



May 20, 2008 – Comments (3)

Target reported earnings this quarter of $0.74 vs. $0.75 last year.  It beat analysts estimates by a bit but this point will probably be missed:

"outstanding shares have been reduced approximately 8 percent since the announcement of this share repurchase program six months ago."

WOW!!!  Earnings negative and 8% of shares repurchased.

In addition, in its credit card portfolio, delinquincies have increased for 6.7%, to 8.7% in the last few months.

Is Target going subprime?

Further, Target just raised about $3.6 Billion selling about $4 Billion of credit card receivables.....Guess what they are going do to with that cash? more shares to hopefully sugarcoat any future earnings decrease?


3 Comments – Post Your Own

#1) On May 20, 2008 at 10:13 AM, bobbyj0708 (< 20) wrote:

And don't doubt for a second that JPM didn't buy those CC receivables from TGT, securitize them into "AAA" securities, and rush off and swap them with the dumbass Fed for good T-bills.

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#2) On May 20, 2008 at 12:46 PM, GS751 (26.75) wrote:

lol yeah I love how TGT has a ton of Credit card recievbles right now, guess what they aint gonna be able to sell em in this market. 

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#3) On May 20, 2008 at 9:57 PM, thisthatother47 (66.82) wrote:

bobby, that's exactly what they did.  Which was then used to buy oil.  And the Gov't wants to sue OPEC, after making all of this possible...

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