Turnaround Stories and Shorting Stocks

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 2 June 2026

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

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Summary

Dollar General was a stock market darling for much of the 2010s, but fell on hard times a few years ago. Numerous value investors have been betting that “it’s not that bad”, but that turnaround strategy has taken much longer than expected. Lou, Matt, and Tyler all look at the status of the Dollar General turnaround story and what does it take to invest successfully in turnarounds. Plus, thoughts on the Citron Research verdict and whether crowdfunded real estate opportunities are worth it. Tyler Crowe, Matt Frankel, and Lou Whiteman discuss: - Dollar General’s earnings - Has Dollar General turned the corner? - Investing in turnaround stocks: What to look for? - Citron Research’s Andrew Left found guilty of securities fraud - The value of short selling research - The “ickiness” of the short seller business model - Listener question: Are crowdfunded real estate funds worth it? What to look for? Companies discussed: DG, DLTR, RIG, GTX, SMPL Host: Tyler Crowe Guests: Matt Frankel, Lou Whiteman Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement.We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode.Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	We're talking short sellers and turnarounds today on Motley Fool Hidden Gems Investing.
0:07.0	Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crow, and today I'm joined by longtime Fool
0:15.0	Contributors, Lou Whiteman, and Matt Frankel. We're going to be getting into short sellers,
0:20.0	specifically short selling
0:21.1	research firms after the court decision that came down on Citron research earlier yesterday.
0:27.4	We're also going to look at investor questions related to real estate on the private side,
0:32.7	not necessarily reeds that we normally talk about on a publicly traded entity show.
0:36.5	But first, we're going to
0:37.7	start with Dollar General. And we wanted to, I wanted to bring this one up specifically because
0:42.0	it's been like a turnaround story for several years. You know, it's not the most headline
0:47.3	grabbing company, but during the 2010s, Dollar General was one of the best performing stocks.
0:54.1	It handily beat the S&P 500. And,
0:57.0	you know, companies that we think of now in, like Mag7 companies like Microsoft and Alphabet,
1:01.5	Dollar General was beating it. That kind of came to a crashing halt right around 2022 as some
1:07.3	trouble started to pile up for various reasons. And the company's been trying to get its act together for a while now.
1:13.6	And today, this morning, it just reported earnings, and the numbers said they beat expectations
1:18.2	and raised guidance.
1:19.6	And yet the stock is down about almost 3% as we're taping this.
1:24.0	So, Matt, was this a good result?
1:25.9	Or was it just kind of beating bad expectations for
1:29.1	what is now kind of a downtrodden stock? Yeah, well, I mean, dollar general, you're right,
1:34.2	they beat expectations on earnings, on revenue, they missed expectations a little bit. It wasn't
	...

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