Q: Hi, now that ATD has formally dropped the proposed take over of 7-Eleven, where do you see the stock price reverting to? Low-mid 70's ...until they announce their next deal.?
I have owned (and trimmed) over the last 10+ years so have done well but I don't think I will get the same returns as I have previously. Can you please suggest a replacement?
Thank you!
Steve
I have owned (and trimmed) over the last 10+ years so have done well but I don't think I will get the same returns as I have previously. Can you please suggest a replacement?
Thank you!
Steve
5i Research Answer:
DOL would be our suggested replacement. The stock is $75 with the cancellation of the deal, as investors breathe a sigh of relief on debt (though we think if ATD got 7/11 it still would have been good for it). We think it works back to $80. There will be more deals and it has the capacity to go big on the right deal. We would not view it as a SELL today.