Macy’s, Inc.’s Real-Estate Cash Machine Takes Off
For more than a year, Macy’s (NYSE:M) has been talking about monetizing some of its underutilized real estate. However, it wasn’t until last quarter that Macy’s started to generate large amounts of cash from real-estate sales.
Many investors seem to be underestimating the potential of real-estate transactions to transform Macy’s finances, but selling off valuable real estate has allowed Sears Holdings (NASDAQ:SHLD) to survive despite posting deep losses year after year. Macy’s has an even more valuable real estate portfolio than Sears. As it captures that value, Macy’s stock could soar.
Macy’s gets downgraded to just above junk status
Credit rating agency Standard & Poor’s downgraded Macy’s Inc. on Wednesday to the lowest possible investment grade following earnings that saw profit beat expectations but revenue fall short.
S&P downgraded Cincinnati-based Macy’s (NYSE: M) from “BBB” to “BBB-,” which is the rating just above “junk” status.
Macy’s Fails to Stop Its Sales Decline
Macy’s (NYSE: M) comparable-store sales continued to slip last quarter, while its overall revenue dropped further, at least in part because the company has been closing stores.
Total sales in the fourth quarter came in at $8.515 billion, down 4% from the same period in 2015. Comparable sales dropped 2.7% on an owned basis and 2.1% on an owned-plus-licensed basis.
Those numbers roughly match the trend for the year, during which total sales fell 4.8% to $25.77 billion and comparable sales were down 3.5% on an owned basis and 2.9% on an owned-plus-licensed basis.
Today’s Trading Lesson…
E-Book [19 pages]: How Successful, Experienced Traders Think Differently From Those Who Struggle
Many break-even traders cling to the idea that an edge should always produce a profitable trade. This mindset is where inconsistency is born.
Download this free 19 page e-book today and join me as I review an email from a struggling trader and give some advice on how to get back on track.
Today we’re going to take a little bit of a different twist. I’m essentially going to be responding to some of the email conversations that I get from mentoring clients and students.
I want to specifically touch on something that is an issue that is not talked about enough, but probably should be, and that’s the move over from I’m starting to learn how to read charts, I’m getting involved in the business, and crossing the abyss.
“I know everything I’m supposed to know, but I’m not making any money yet.”
On the Tape Today | 2-24-17
JPM JP Morgan Chase continues to hold a classic momentum pause after a breakout to new highs. Game planning a $91.50 buy-stop with a swing trade target next week of $100. Stop loss is an exit on the daily chart below $90.25.
DKS | Dicks Sporting Goods pops into the list again simply because there is extraordinary room-to-go and clear order flow. Planning a $48 sell-stop with a swing trade target to cover @ $40.25.
Tape Reading the SPY ETF
$SPY price action remains in the tight range we called out yesterday. On the surface that sounds frustrating but a contraction leads to volatility. Let the explosion begin. Prepare yourself for a trend day, don’t get caught bored and miss the trade.
The number of stocks showing double normal volume increased this week. Not enough to declare distribution, but kind of like the “check engine” light that flashes on your dashboard but you ignore.
$SPY 70 million shares traded nothing to write a headline about which means the bullish order flow remains intact and we have not reached a Saturation Point.
My strategy for today continues to focus on the change from the open price.
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 2-24-17 | Friday Edition
Short-Term Trading Momentum:
Bullish Momentum: FSLR
Bearish Momentum: lb, nvda, clvs, trip, nuew, apa, jwn, cat, unp
Quarterly Order Flow:
Bullish Stocks to Trade: AMT, TSO, BA, ADSK, AET, PRU, PNC, ABC, IBM, ACN, WDAY, GS, HD, COST, AMZN, FB, AVGO
Bearish Stocks to Trade: sm, trip, apa, rrc, dks, yelp, kors, oxy, eqt, gild,
2x Normal Volume: NVDA, LB, TSLA, CTRP, FSLR, APA, RIO, SM, RRC, TJX, TRIP, EW, NFX, TRGP, YELP
Inside days: f, c, ms, wmb, sbux, nem, mat, dow, aig, dd, mchp, wy, wdc, cag, gis, amtd
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