Trading The Dollar Stores Today (DLTR, BIG, NDN, FDO)

Yesterday Nelson Peltz offered $55-$60 per share for Family Dollar FDO, and the dollar store companies like Big Lots BIG, 99 Cents NDN and Dollar Tree DLTR are moving on the back of this news. These moves occurred in the after-hours yesterday, and are continuing today. The way to trade this is to take the profits and move out, as parts of the letter from Peltz and Trian yesterday were a bid disturbing to me. In the announcement, Peltz said it was a "highly contingent offer", and it may not actually do anything with it. This could be a ploy to get out of his stake in the company, or it could be a legitimate offer for the company, in an effort to take it private. The first one: "The Trian Group also advised Mr. Levine that it proposed that the Trian Group or one of its affiliates acquire the Issuer at a price in the range of $55 to $60 per Share in cash. Any such transaction would be subject to customary conditions, including completion of a satisfactory due diligence review, execution and delivery of definitive documentation, approval of the Board of Directors of the Issuer, receipt of financing and receipt of regulatory and third-party approvals, including expiration or termination of the Hart-Scott-Rodino waiting period. " The other one: "There can be no assurance that the Trian Group will consummate the acquisition or that it will acquire any additional shares." These parts of the letter bother me, and if I was a holder of these companies, I would take the quick buck, and walk away. Disclosure: no position in names mentioned