I’m a sucker for Christmas…
And I’m an even bigger sucker for Christmas movies.
A Christmas Story, It’s A Wonderful Life, National Lampoon’s Christmas Vacation…
They’re all good – but my mom always loved “A Miracle on 34th Street”.
The movie which winds up putting Santa Claus on trial for claiming to be the REAL Kris Kringle is awesome…
And it’s got a great message to the movie.
That said – there may be ANOTHER miracle on 34th Street – because while the movie starts with Santa taking umbrage to the fact that a drunk actor was going to play him in the Macy’s Thanksgiving Day parade…
And today – investors may be taking umbrage with what’s might be happening to Macy’s department stores.
Have you seen what’s been going on with one of the original titans of retail?
You won’t believe it if you haven’t…
Let’s see if there will be another miracle on 34th Street.
Don’t worry…
I’m not going to keep you in suspense.
Yes, Macy’s (M), that nostalgic behemoth of a department store we all know and either happily or begrudgingly traipse through during the holidays…
Is currently perusing a rather flattering $6 billion buyout offer.
Ah, the sweet smell of commerce in the holiday season!
So, what’s the big deal?
It seems like consumers nowadays would rather play dress-up in their pajamas at home, clicking away, than actually venture out and GO to a store.
Macy’s and its fancier cousin, Bloomingdale’s, are left to rely on their perfumed lobbies and the faint echoes of shopping days gone by to lure in customers.
But let’s be real, private investors like Arkhouse Management and Brigade Capital aren’t in it for the sentimental journey down memory lane…
They’ve spotted something shiny in the rubble – Macy’s owns a lot of its stores – real estate that’s apparently worth nearly as much as the buyout offer.
Arkhouse – being the real estate aficionado it is – probably sees dollar signs per square foot rather than any nostalgic value.
So, if you’ve ever been curious about what a retailer is actually worth, just look at Macy’s.
It’s like a retail autopsy.
Add up the assets: their flagship store in New York, all the other locations, the piles of unsold cashmere sweaters and whatever cash it has stashed…
Then subtract the debts and unpaid pizza bills for late-night inventory sessions.
This math gives Macy’s a worth of about $4 billion – which is – awkwardly, a bit less than the proposed buyout price.
So, what do these private equity suitors see in Macy’s that we don’t see in the numbers?
Perhaps they’re envisioning a retail renaissance or planning to conjure some new magic on 34th Street?
Odds are…
There’s something BIGGER at play here.
Because when you look at the actual data…
Currently, only about 15% of U.S. shopping is done online.
But that number is inching up – signaling potentially rough seas ahead for physical stores.
Then again, considering the amount of time younger generations spend doomscrolling on their phones…
Maybe there’s a glimmer of hope for good old in-person retail therapy.
After all…
There’s something about the thrill of the hunt in a real store that just can’t be matched by clicking ‘Add to Cart.’
Right?
Either way – this situation is something we should keep our eye on.
Is it a profit opportunity?
Maybe!
It may be a little too soon to tell – but with the buyers coming in almost $2 billion above actual worth – it may not be long till the entire picture comes into focus…
And do you know who will know this before everybody else?
GorillaTrades members know that when they get a recommendation – it means the data has triggered a buy (or sell) action.
Right now, the data isn’t showing us enough to make a call either way…
Which is why I’m urging you to become a member of GorillaTrades today.
Most people trade on second-hand news or rumor…
But very few pay attention to the numbers – but we do – which is why we’re one of the most trusted names in our industry.
We’d love to have you along for the next round of picks – but understand some people like to go it alone…
Either way, keep your eyes on Macy’s – there may be another miracle in the works!
“There are two ways to live: you can live as if nothing is a miracle; you can live as if everything is a miracle.” – Albert Einstein