Timing is everything -- just ask Target

They say timing is everything in life. Just ask Target Corporation (NYSE:TGT) about that subject. Target released their 4th quarter 2007 year end Numbers this morning and all was quite good. They came in at $1.29 per share while consensus was at $1.27 per share. For a giant retailer a two cent upside is something to take notice of.

Normally, with this kind of earnings report, the shares would be up between $1-2 on some hefty volumes. But investors are distracted today with the Chinese market getting hit hard and the rest of the world following suit.

When this market calms down--and it will--Target will snap back and make up the $1-2 it is owed for such a good earnings report. One little gem in the numbers not getting the attention it deserves was the credit card operations of Target. Target stated that its credit card operations contributed $693 million before taxes to its P&L, up 53% from last year. Credit card revenues are high margin and a highly predictable revenue source.

So not only is Target kicking Wal-Mart Stores, Inc.(NYSE:WMT) in the same store sales game, but this retail concept has room to double its store base and cash generation from the credit operations is growing big double digits. Now back to that timing issue...

Georges Yared is the author of recently released books "Baby Boomer Investing...Where do we go from here?" and "Stop Losing Money Today". Please visit http://www.georgesyared.com