Stock Market Today: A Billionaire Sees Value at Dollar Stores

Why Family Dollar, Dollar General, and Tyson Foods stocks are on the move today.

Jun 9, 2014 at 9:25AM

The Dow Jones Industrial Average (DJINDICES:^DJI) has lost 18 points in pre-market trading, suggesting a down start to the stock market today. World indexes crept toward all-time highs over the weekend, after the Dow and S&P 500 set their own records on Friday. Asian stocks notched a three-year high while European shares were unchanged as of 8:30 a.m EDT.

Meanwhile, news is breaking this morning on Family Dollar (NYSE:FDO) and Tyson Foods (NYSE:TSN) stocks, which should see heavy trading in today's session.


Family Dollar rallied higher by nearly 12% in pre-market trading after activist investor Carl Icahn announced that he has scooped up 9.4% of the discount retailer's outstanding shares. The disclosure that Icahn's company filed with the SEC doesn't give investors much in the way of details on the billionaire's plans, saying only that he intends to chat with management about "strategies to enhance shareholder value, which may include the pursuit of operating initiatives or the exploration of strategic alternatives." Family Dollar, for its part, said this morning in a press release simply that management is "open to dialogue with all shareholders." Investors appear to be betting that one the alternatives that Icahn could pursue would be a be a merger or buyout with rival Dollar General (NYSE: DG), whose shares also jumped 9.4% higher in early trading.

Tyson shares were down 1.4% in pre-market trading after the chicken giant today announced that it has boosted its bid for Hillshire Brands (NYSE:HSH) from $50 a share to $63. That increase brings Tyson's total potential cost up to $8.6 billion from the $6.8 billion that it originally offered last month. The new offer drove rival Pilgrim's Pride out of the hunt to acquire Hillshire, Reuters reported. Tyson investors are getting a valuable collection of food brands for that price. CEO Donnie Smith said in a press release that the purchase would be "a defining moment for Tyson Foods" in its "aspiration to be a leader in retail prepared foods, just as we are in chicken." The company said the expensive deal shouldn't jeopardize its credit rating, and would likely start to boost earnings in the first year after it closes. 

You can't afford to miss this
"Made in China" -- an all too familiar phrase. But not for much longer: There's a radical new technology out there, one that's already being employed by the U.S. Air Force, BMW and even Nike. Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made In China" for good. Click here!

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers