No. of Recommendations: 18
Yeah, I know, everybody is sick of DG.
I just thought I'd mention that the drumbeat of underperformance had turned into (so far) a strong trend of outperformance.
Since the "back to the old boss" story that kicked off this thread, the stock price has been steadily outperforming the average S&P 500 stock.
Using RSP as a proxy for "the average big US stock" and using the average price in the days before the announcement, Oct 9-12 as the baseline, DG is up +18.1% and RSP is down -3.8%.
About half of the gap was right after the announcement, and the rest has been a steady relative climb.
One can speculate that, for those who didn't want to catch a falling knife but believed in the story, it's now safe[r] to go in the water. Mr Market is no longer dumping, and DG is now a relative-to-market momentum stock.
DG at $122.22 as I type. My breakeven is waaaaay above that. RSP at $136.03.
Jim
