Q: This stock has steadily increased for a number of years but this year it's it's been up and down. Whats happed and will it continue to decline?
5i Research Answer:
ATD has made overtures to Seven & i Holdings, the owner of 7-11 Stores, for a possible takeover. At a value of about $66 billion, it would be ATD's largest deal ever, and thus fairly risky. Investors are concerned about debt, equity sales, and integration. Certainly it won't be easy (even if the deal can be completed) but ATD's record of past acquisitions is excellent. We think it would be a good move for the company, at the right price. But even without the deal we would still consider it a solid stock overall. But this is certainly the main reason for its recent weakness.