DDS - about to get cock-blocked

@rexxxar 's JWN post got be looking at DDS and M.

Dillard’s. What the heck. This stock has the biggest green dildo I have ever seen.

They smashed earnings, announced a special $15 dividend, and a $239M stock buyback.

And holy crap look at the price action. I’ll take some puts. Thanks.

EDIT: I have to get a haircut this morning so I won’t be able to complete this until lunchtime. Historical PE data shows a range of 9 to 18. Right now they’re sitting at about 13-15.

No historical TA indicates they will sharply spike lower from being overbought yet.

Remember option strikes get adjusted on ex-div date.

Highest analyst 1yr price target is $330.

Don’t buy puts just yet. I need to read some more fundamentals.

4 Likes

Down $35.5 / 8.67% so far today!

1 Like

Any thoughts if DLTR is similar to this? Haven’t looked into it too deeply but the price action has been similarly insane over the past month

1 Like

That was likely due to JWN and GPS pulling it down, see KSS and M as well, KSS looks to have broken out and M not too far behind, just has a bit of consolidation pressure still.

Be careful with Dillard’s going short, I’ve been watching these retail stocks very closely and I would say M, KSS, and DDS all have the online sale growth to possibly buck the trend with other department store retailers getting the supply chain shaft. For people playing these keep an eye on Saks 5th Ave, it is spinning off the digital portion of its company as an individual one and the recent buybacks by M and DDS have me believe they will at least do the due diligence to perform a similar company split or have confidence they can successfully transition to majority ecommerce

3 Likes

Quick check on their history after giving dividends, the stock will do a ‘GUH’ on the day or day after dividends . Seems to be a recurring pattern.

There’s still instances where it went up after the dividend…so i’m just going to observe how it moves for now.

1 Like

Um, are you talking about the fact that stocks decrease in value the amount of the dividend on the ex-dividend date?

Or do you mean the stock tanks even lower than previous day close - dividend?

Tanks even lower than previous day after the dividend date. (Happened twice to the 2 recent dividends)

It would make a lot of sense

Fuck my life I’m so poor and couldn’t afford puts. 416 to 340 in 2 days. Even with the dividend of 15, that’s a $61 drop. Insane profits missed.

1 Like

Didn’t expect it to go down that fast. Was thinking of shorting it post dividend so I don’t have to pay that $15 per share. It’s still on my watch list. May have room to go down further.