Take a Chance on Macy's

So, Macy's (M) traded off more than 3% today after being off more than 4% on Friday. Hudson Bay seemingly has failed to line up financing for the troubled bricks-and-mortar department store chain. The stock scraped along just above $30.25 all day. Macy's management appears to doubt that any deal is imminent. If there is not a price around here that a potential suitor would want to buy Macy's, is there a price that the retail investor who understands the risk would buy the name? Bear in mind that Standard & Poor's and Moody's have cut Macy's debt down to within spitting distance of junk.

What I'm talking about is buying a name when nobody else wants it. Or let me clarify: Be prepared to buy the name at a price that suits your tolerance for risk, and get paid for taking that risk. Macy's found support at around $28 in January after all of the retailers got smacked around in the wake of the holiday season. The stock also found support in the $29 neighborhood last spring. These prices indicated actual support, and were not provoked by the potential for an outside takeover....323 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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