| Where’s Macy’s Going? |  |
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| Tuesday, 13 November 2007 | |
Should Investors Sit on The Sidelines for Macy’s?(NAMC) – Now the holiday season is upon us, many retailers are trying to get a jump on the holiday season, such as Walmart and JC Penney, but they are not alone. With the concerns of inflation and gas prices on the move upwards once again, retailers are trying to reel in the consumer before they start clicking the checkout button with their mouse. The reality is that the Internet has made it so much easier for consumers to shop and believe it or not rising gas prices are a deterrent to a consumer actually getting in their car to buy little jimmy the latest Sony Playstation video game when its just a click away. So tomorrow one retailer that I actually like more since they shifted the focus from Federated Department Stores to plain old Macy’s is announcing their earnings. Since July the stock has fallen from a high of over $43 to a low in the $28 range, and its been choppy trading since the summer but every time the stock slipped it just dropped a pinch lower before bouncing back up. The Street is looking for an EPS of 7 cents per share but I think that even if they hit the mark we may see it drop down into the low $29 range, if they miss then we may see it in the low to mid $28 range. I wish this wasn’t my outlook as I am really hoping that Macy’s proves me wrong but based on what retail is looking like nowadays I think that this is what they will be facing on Wednesday. Long term this is truly a $45 stock so a pullback may just present a nice opportunity for investors. Louis Victor
NAMC Newswire Note:NAMC Worldwide provides Investment Banking consulting services to both publicly traded and privately held companies, everything from capital raising to mergers and acquisitions. Other areas of focus are Private Equity Capital Raising and Private Commodity Transactions.
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