MRK - Dollar Tree Stock Is Down 20% But Investors Should Reject Mini-Tender Offer
Dollar Tree (NASDAQ: DLTR) stock was pummeled in November after its earnings report resulted in the deep discounter reducing its sales outlook for the third consecutive quarter and lowering its profit forecast.
Shares trade at the same level now as they did a year ago, meaning investors have seen no benefit despite all the restructuring going on at the Family Dollar chain. So when private equity firm TRC Capital offered to buy their shares in a mini-tender offer last month, investors might be tempted to leap at the chance of unloading their stock and getting out of a company that looks like it's going nowhere fast.
They should reconsider their position.