Squawkbox market analysis with Danielle Morellino from Thomson FinancialTranscript:Welcome to this week's Thomson Squawk Box On the Radar Report. I'm Danielle Morellino.Dillard's department store's earnings results are due out soon, and while the headline numbers are likely to be poor, its a stock that is trading near all-time low valuations, just ended its Trend Intensity downtrend, and is showing reversal potential based on a DeMark indicator.Count in the fact that activist shareholders are getting involved to try to get this stock going again, and we think Dillard's shares may bottom out soon. Unless the financial numbers are a total disaster, we think its a stock that value traders will start accumulating, especially if it dips to 2003 lows near $13 dollars.Dillards has seen very few positives in recent months, save for the February same-store sales that were slightly better than expectations. The overall trend has been dismal. The company gave downside revenue guidance last month for all of the fiscal year. The third-quarter call was a big earnings miss, as the retailer was hit with the triple-whammy of higher costs, decreasing comps, and the need to work off inventory. Gross margins were worse than expected, and the company was forced to take increased markdowns.The Thomson Ratings system ranks Dillard's a 2 overall, out of 10, with the lowest-possible earnings score. The stock clearly has many warts. But its valuation is not one of them. Dillard's bottomed in 2000 and 2003 at about half its book value, where it is trading again now. Valuation is the likely reason Dillards is now seeing activist shareholder interest. Barrington & Clinton owns about 5% of the stock and has requested a complete list of current shareholders, seemingly in preparation for communications with them ahead of the May annual meeting. It appears to us that the group is lining up ducks to try and win some of the four available board seats that come up for grabs, in an effort to unlock some of the shareholder value.For more details and for market intelligence and more trading ideas, visit Thomson Squawk Box Dot Com.