(01-06-2021, 11:25 AM)EricL Wrote:(01-06-2021, 10:53 AM)divmenow Wrote: Trimmed TGT and added to ABBV as well
Curious on your TGT trim considering the $600 stimulus that just went out and the likely additional $1400 that will pass now with Democrats taking the Senate.
TGT should be a big beneficiary, no?
Eric the stimulus is a bit over blown to how it will be spent. A lot of people are still out of jobs and need to pay rent, and need for their kids. People were already spending money at target during and will after the pandemic is over. So there pay checks are already being spent there. I think the stimulus checks will be spend on rent, home repairs, bills, new computers, car repairs and things like that. They real beneficiaries will be HD and LOW. Both I wouldn't mind adding too. Of course food at TGT as well. But it will be a wide spread everywhere threw many industries.
However my thinking is , looking further into 2021, the pandemic may start to abate thanks to the availability of highly effective COVID-19 vaccines. That could prompt an abrupt shift in spending away from "things" and back to experiences. As people return to restaurants and cease worrying about shortages, they may purchase fewer groceries and stop stockpiling household essentials. With the exception of apparel, the end of the pandemic could prove a drag on sales of every major merchandise category at Target.
TGT has run from $170 to $186 in a week lol, so that stimulus was already priced in. I still own lots, just decided to trim at $186 on a big up day! It's PE has doubled from 12 to 25 in a year. I bought most have my shares at an average of $62.
Anyway that's my thoughts on TGT
