Dallas, Texas 11/07/2013 (Financialstrend) – ALCO Stores, Inc. (NASDQ:ALCS), formerly known as Duckwall is engaged in the business of retailing general merchandise through its chain of 217 stores spread across 23 states in U.S. Midwest region. The Company’s stores offer a host of merchandise consisting of approximately 35,000 items, including “automotive, commodities, crafts, domestics, electronics, furniture, hardware, health and beauty aids, house wares, jewelry, ladies’, men’s and children’s apparel and shoes, pre-recorded music and video, sporting goods, seasonal items, stationery and toys”. ALCO was founded in 1901 in Kansas by Alva Lease Duckwall and is headquarters in Abilene, Kansas.
Over the previous week the company announced that it failed to receive the go ahead from its share holders to adopt the merger agreement the firm has signed off with “Mallard Parent, M Acquisition Corporation” on July 25 2013. Thanks to the thumbs down by its share holders the firm called off the merger transaction. Readers should note that the company had let it be known that it would voluntarily delist itself if the merger had come through on October 30. This would have been necessitated because it would have moved into the holding of Argonne as a wholly owned subsidiary.
Alco Stores closed the last trading session at $10.8 up by 4%. From an investor perspective the near term (3 months) returns might not be have been great, a negative returns of 23%, however the stock has given decent returns, 18% from an year perspective. One needs stay invested with Alco stores to expect decent returns and most of the analysts feel that the price target of $13.88 for the stock is within reach. At close of business on November 6 the stock was trading at $10.8 per share. Also to be noted is the earnings call which is on 2nd of December.