Bill Ackman still aiming at Target

Activist investor William Ackman has been trying to get Target (TGT) management to take action to increase its share price, and he has been at if for over a year. According toThe Wall Street Journal, he plans to try to replace some of the company's board using his 7.8 percent stake in the firm as leverage. The paper reports that Ackman said, "We want directors with relevant expertise, who can draw from their personal experience when the board has a decision to make." That probably means directors who will vote based on Ackman's interests.

Ackman has been burned as Target's stock has dropped, but the company has a reasonable case when asking shareholders to ignore him. Over the last year, Target's stock has not done any worse than the Dow and has done much better than most retail stocks. In other words, in a world where the retail industry is falling apart, Target has not been a bad bet for investors in the sector.