M - Macy's: Broken Market

2024-07-15 17:04:55 ET

Summary

• Macy's, Inc. terminated discussions with investment firms offering a lowball acquisition price.
• The investment firms made offers far below the true value of Macy's real estate assets, and the company questions the legitimacy of the deal financing.
• The stock has dipped due to the broken stock market, with Macy's only trading at 6x EPS targets, while the potential exists for a higher buyout offer.

In no real surprise, Macy's, Inc. ( M ) terminated discussions with investment firms constantly lowballing the company with offers to acquire the business. The department store retailer has a valuable retail business and real estate assets worth billions, yet the firms continued to make offers far below the true value of just the real estate assets. My investment thesis is ultra-Bullish on the stock, dipping here due to a broken stock market....

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