In the SEC filing Icahn said that he acquired the 10.7 million shares of Family Dollar stock because he believes the stock is undervalued. Icahn said he sees “great long-term potential” in the discount retail industry and that Family Dollar would benefit from his efforts to “generate tremendous returns for all shareholders.” Icahn cites his recent actions at CVR Energy Inc. (NYSE: CVI), Chesapeake Energy Corp. (NYSE: CHK), Forest Laboratories Inc. (NYSE: FRX) and Biogen Idec Inc. (NASDAQ: BIIB) as examples of his good work on behalf of shareholders and company management.
Icahn also said that he intends to try to engage in conversations with Family Dollar’s senior management and board of directors to discuss the company’s “business and strategies to enhance shareholder value.” He also notes that such enhancement could include “the pursuit of operating initiatives or the exploration of strategic alternatives.” Icahn also said he may seek representation on Family Dollar’s board of directors.
Although Family Dollar stock has doubled in value over the past five years, shares have dropped about 10% over the past two years. Same-store sales dropped nearly 4% in the company’s most recent quarter, and if it weren’t for tobacco and consumables, sales the drop would have been much worse.
In his comments when the company reported fiscal second-quarter results, Family Dollar’s CEO said, “Notwithstanding the macro-economic pressure, competitive environment and severe weather, we are not satisfied with our results, and we hold ourselves accountable for improving our performance.” Don’t worry, folks, Carl Icahn is riding to the rescue.
ALSO READ: Carl Icahn and Activist Investing … and Insider Trading?
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
