An interesting downgrade
Posted on November 16, 2009 at 1:47 pmGoldman Sachs has lowered its rating of Dollar Tree (Ticker: DLTR) to ‘neutral’ from ‘buy,’ saying one of the main rivals of Dollar General will face difficult comparisons after this quarter.
On a completely related note, Goldman just got paid big time helping take Dollar General (Ticker: DG) public again.
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Dollar General’s map of the future
Posted on November 13, 2009 at 10:29 amNewly public Dollar General (Ticker: DG) plans to open 600 stores per year for the foreseeable future, but CEO Rick Dreiling says new markets — including all of the West Coast — will only account for a tenth of that. There’s plenty of fruit still on the trees in states where the company already operates.
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A second look at Dollar General’s high valuation
Posted on November 11, 2009 at 9:44 am
Pali Research analysts Stacey Widlitz and Brandon Ross say Dollar General has earned its higher valuation over its main peers by virtue of strong execution, a better private-label program and more aggressive growth plans. They also expect strong per-share profit growth due in large part to the paying down next year of some $600 million in debt.
However — you kinda knew that was coming, no? — the Goodlettsville-based retailer’s pending IPO looks set to value the company a third higher than Family Dollar and Dollar Tree. And that is a bit much if you’re looking for more gains, say Widlitz and Ross. Seems like Dollar General has quite simply done too good a job over the past few years.
DG is highly exposed to consumables which have been a tailwind for the past two years. However, that means the company is less exposed to a turn. DG has also completed most of the “hard work” in its turnaround story… We would rather own a name … that has upside as a result of initiatives that are early in the game and should drive EPS upside in 2010.
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You don’t absolutely have to get into Dollar General at its IPO price
Posted on November 6, 2009 at 12:57 pmBut it sure will help your portfolio if you do… Jutia contributor Brandon Clay says the Goodlettsville-based retailer likely won’t trade at a discount to Wal-Mart long after it goes public.
It’s a cash cow so long as the debt load can be managed and eliminated.
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An idea of how Wall Street will welcome Dollar General
Posted on October 12, 2009 at 7:47 am
By now, the premise has been clearly established: Value-oriented retailers — especially those with “Dollar” in their name — are doing very well during the recession. Friday’s upgrade of Family Dollar by BMO Capital Markets sums things up nicely. Get used to seeing phrases like “strong cash flow yield” as Goodlettsville-based Dollar General preps its IPO.
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A Dollar General IPO update
Posted on October 5, 2009 at 7:47 am
The Goodlettsville-based discount retailer recently filed an amended S-1 that updates some of the info associated with its pending public offering. Among the new details:
• The company has applied to have its shares trade under the same ‘DG’ ticker symbol it had before going private in 2007.
• The company last month paid its shareholders — primarily private-equity firm Kohlberg Kravis Roberts — a special dividend of $239 million. That’s about 20 percent higher than its earlier estimate.
• Prior to the IPO, the company will organize a reverse stock split that will reduce the number of shares outstanding and increase their initial offering price. That price has not yet been determined, but a January analysis connected to the issuance of options put the shares’ fair market value at $5.50.
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Good thing Emdeon and Cumberland went public last month
Posted on September 25, 2009 at 12:59 am
StreetInsider.com says the trickle of IPOs and secondary offerings has become a near-tidal wave that could quickly peter out as investors simply lose interest and look to digest what they’ve gorged on in recent weeks. Besides, all these firms raising millions will have to put that money to work sometime.
‘Maybe a little antacid, in the form of more M&A, could help us fight through the pain.’
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One of the main reasons Dollar General is going public again
Posted on August 27, 2009 at 7:29 amThere is plenty of talk that Dollar General owner Kohlberg Kravis Roberts is taking the discounter public in part because it needs to test the waters for its own IPO. But based on Dollar Tree’s strong numbers reported Wednesday, it’s clear that the private-equity titan likely couldn’t pick a better time to float a value-oriented retailer.
Two-way traffic on Cumberland’s growth path
Posted on August 24, 2009 at 2:22 pmThe recent IPO of Nashville-based Cumberland Pharmaceuticals generated $85 million the company plans to use for acquisitions. But a piece from Dow Jones Newswires‘ Rob Armstrong says large-cap pharma players also are looking to buy into the smaller companies Cumberland (Ticker: CPIX) will target.
The point that acquisitive firms must keep in mind is that risks must be taken to achieve future growth. Buying a shot on goal, or two, for a couple of billion dollars may offer better return on risk than either pouring money into internal research or taking on a big debt load to pay for a megamerger.
SEE ALSO: Local pharma firm’s IPO ‘couldn’t come at a worse time’
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Health care tech co. joining IPO wave
Posted on August 21, 2009 at 1:58 pmGeorgia-based HealtPort, which has a small local presence in former Symbion executive Billy Webb, has filed an S-1 with the Securities & Exchange Commission.
Webb was previously the chief development officer and a director with ambulatory surgery center operator Symbion. He left the company in 2007 to join HealthPort.
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Cramer: Still upside in Emdeon
Posted on August 19, 2009 at 1:31 pm
Citing strong earnings momentum, CNBC’s Jim Cramer says there is plenty of opportunity left for investors to get into newly public Emdeon (Ticker: EM) despite the stock’s post-IPO bounce.
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Nashville’s newest public company down a bit
Posted on August 11, 2009 at 12:15 pm
More than 1.4 million shares of Cumberland Pharmaceuticals (Ticker: CPIX) changed hands during the first two hours of its public life. By lunch time, the shares were off about 1 percent, giving Nashville-based Cumberland a market cap of roughly $285 million.
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Local pharma firm’s IPO ‘couldn’t come at a worse time’
Posted on August 10, 2009 at 12:30 pm
Brian Laegeler at Morningstar says Cumberland Pharmaceuticals’ chances of successfully carrying out its post-IPO acquisition plans are slim. The Nashville-based company is expected to raise $100 million this week, but Laegeler sees higher costs ahead.
In our view, there couldn’t be a worse time for a small drug company to launch an acquisition program. Most big and specialty pharma companies we cover are desperate to rebuild sparse pipelines and have access to piles of cash. It’s highly unlikely that Cumberland, with its limited resources, will attract a sizable or promising opportunity for a reasonable price.
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Emdeon Q1 up 131%
Posted on June 16, 2009 at 11:05 pm
The Nashville-based health care payment processor is proving its recession-resistant business model as it prepares to go public with the ticker symbol EM.
Filing an amended S-1 with first-quarter numbers, the company says revenues rose 4.5 percent to $220 million, operating margins grew from 10.8 percent to more than 13 percent and net income that more than doubled to $3.3 million. Both main business segments posted steady growth rates and, helped by 150 job cuts since last June, management has kept spending in check.
One sidenote: Barclays Capital and Jefferies have Emdeon’s underwriting team, replacing Merrill Lynch and Banc of America Securities.
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Gore media company withdraws IPO registration
Posted on April 13, 2009 at 9:00 amNew York Times on the activities over at Current:
Current Media, an independent media company that was founded by former Vice President Al Gore and a businessman, Joel Hyatt, has withdrawn its registration to raise as much as $100 million in an initial public offering, citing “market conditions.”
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