No matter what your opinion of Ackman, we all have to be thankful he is giving us something other that the Government to talk about.
In an interesting development yesterday Target (TGT) made a move that to some extent, validates what Ackman has been saying for over a year now, Target badly underutilized their grocery potential. Target announced that in 100 stores they are dramatically expanding their grocery offerings. This is a move that Ackman has been pushing for and Target’s grudging acceptance if it, so close to the upcoming meeting in which Ackman’s slate of electors will be voted on, well ought to give current shareholders pause before checking their prospective boxes on the proxy.
Here is the thing. If you are a shareholder and happy about the company’s performance the past two years, stick with what you have. IF, on the other hand, you are not and feel that like Wal-Mart (WMT), Target ought to have seen results improve as the consumer felt more pinched, not deteriorate, that you need change. Change on the board level would not be akin to “wholesale change” but would be significant enough to alter the company’s focus and direction in way that should pay of long term.
Either way, will be fun to watch..
Disclosure (“none” means no position):Long WMT, none