Bill Ackman Likes Family Dollar; Could See $70

Bill Ackman is speaking at the Ira Sohn Investment Conference today. Ackman runs the multi-billion dollar hedge fund Pershing Square Capital Management. According to the widely watched fund manager, shares of Family Dollar FDO are undervalued. He said that the company has an attractive return on capital, spends money intelligently, and can build a lot more stores. He also said that FDO is cheap and management is implementing new programs to spur productivity. Ackman added that FDO is an attractive leveraged buyout candidate and it could hit $70 a share. During Wednesday's trading session, FDO shares rose 086% to $54.82. In after hours trading, the stock has jumped another 2.39% to $54.82 on the back of Ackman's comments.