3 hours ago
BankonAlec ( @bankonalec )
Macy’s stock is the best deal Macy’s has to offer! With Macy’s trading at a 5 year low because of the China Trade War and the current hatred of brick and mortar stores, Macy’s is looking like a bargain. I’m not going to lie and tell you I like their underlying business as I definitely see it slowing down. Millennials don’t shop at department stores anymore and until Macy’s can improve their online game, their core business will continue to die. BUT like I said we don’t care about the underlying business. We care about their REAL ESTATE. Since real estate is valued at historical cost on its balance sheets, the FMV of some it’s amazing properties are completely ignored and disregarded. But, consider their Flagship NYC store which is a BLOCK long on the beautiful 34th Street. It is 2,500,000 square feet of land in the heart of the NEW YORK city. That building alone can sell for $5 billion, conservatively. And Macy’s itself, including all of its property, is currently valued at only $6 billion...With a 7% dividend yield and dozens of undervalued pieces of real estate, this stock looks like a red hot deal!! Macy’s (M) is currently trading at $21.77.