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Target – Value Investment Fund Buys 500 Shares

Target’s market price is now less than $90 per share as of 09/15/25. Over the last twelve months, the market valuation has dropped dramatically from a high of $160 per share in November 2024 to just under $90 today. The Value Investment Fund purchased 500 shares of Target to add to its portfolio.

Target

Target

The fund purchased the shares at $90 each with an additional cost of $1 per share for transaction costs. Total investment is as follows:

Target – 500 Shares @ $90/Each                                               $45,000.00
Transaction Fees – $1/SH                                                                 500.00
Total Basis                                                                                 $45,500.00 ($91.00/Share)

Target is currently paying $1.12 per quarter for dividends. With a $4.48 per share annual dividend on a $91 basis investment per share, the dividend yield equals 4.92%. The Value Investment Fund has the following value points:

  • Book Value                        $33.93/Share
  • Gross Profit Margin         28.59% *Fair, was at 27.5% at fiscal year end 2022.
  • Earnings per Share           $8.50 *Estimated for 2025, $8.89 (2024), $8.96 (2023), $6.20 (2022)
  • Debt Ratio                         73.5%
  • Profit Schedule:
    1. Six Months to Date 2025       $1,971 million
    2. 2024                                        $4,091 million
    3. 2023                                        $4,138 million
    4. 2022                                        $2,780 million
    5. 2021                                        $6,946 million
    6. 2020                                       $4,368 million
    7. 2019                                        $3,281 million
    8. 2018                                        $2,937 million
    9. 2017                                        $2,914 million
    10. 2016                                        $2,737 million
    11. 2015                                        $3,363 million
  • Intrinsic Value          $102/Share
  • Discount Factor            12%
  • Buy Price                     <$90/Share
  • Sell Price                      >$130/Share
  • Expected Time Frame – 2 Years to Recover to $130/Share
  • Anticipated Return on Investment at Two-Year Point – 20% Annually; 23% Annually Dividend Inclusive

In 2014, Target lost $1.7 billion due to discontinuing operations charges; normal operations still produced $2.4 billion profit. Target is a solid low-risk investment with a lot of upside potential. Any recovery in less than two years will reap substantial reward for the value investor.

This investment has all the characteristics this site’s facilitator advocates. An historical low market price, a solid company with a long history of earnings and stability, pays dividends and at the current price has an almost 5% dividend yield, a fair debt ratio, a reasonable discount rate reflecting a top 500 company, and a strong quick recovery time frame lookout. If this company has two solid quarters in a row, market price will jump 15%. Act on Knowledge.

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