OTCPK:HBAYF - Post by User
Post by
MrBiggeron Jan 10, 2017 8:32am
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Post# 25687076
TDW throws in the towel Massive downgrade
TDW throws in the towel Massive downgradeTD Investment Conclusion Our investment thesis on HBC has been that despite no catalysts to drive the share price in the immediate term, the attractive real-estate portfolio should provide downside protection to the share price until such time that capital investments lead to improving Retail results in F2017. With a further decline in the Retail outlook and the challenging environment looking increasingly likely to continue, we do not see a catalyst for investors to ascribe value to HBC's real-estate portfolio in full over the next 12 months — specifically, its key Saks Flagship. With a carrying value of $12.00 per share in our NAV, this accounts for the majority of our reduced target price.
Target cut to $13 from $26 and downgraded to hold.