This morning I woke up to see that Dollar General Corporation (NYSE:DG) has raised its bid again to $80 a share or $9.1 billion to buy Family Dollar Stores Inc. (NYSE:FDO). I don't think that Dollar General's bid is enough therefore I don't think Dollar General is going to be able to pick this stock up for just $80 a share.
In today's video, I'll show you how MarketClub's Trade Triangles nailed both of these stocks and how they got this trade right. I will also show you why I think Dollar General is going to have to up its bid – big time if it wants to acquire Family Dollar Stores. Last week, Dollar General said it remained committed to making this acquisition, however Dollar General's earnings and same-store sales fell short of market expectations. What does this mean? Is Dollar General reaching out for Family Dollar Stores now while its stock is still relatively high? I think so.
As I said earlier, I believe Dollar General Corporation (NYSE:DG) is going to have to pay a lot more if it wants to acquire Family Dollar Stores Inc. (NYSE:FDO). I will share with you the exact number I think that Dollar General is going to have to pay for Family Dollar stores if it wants to acquire that business.
I have a feeling this is going to be an interesting week so stay tuned.
Every success with MarketClub,