Hudson's Bay Co. HBAYF

Macy's more likely to buy Hbc IMO

[Alan69]

Seems to be a lack of understanding with this company, Hbc.

Macy's, it would appear needs Hbc more than Hbc needs Macy's. 

i say this because macy's desperately needs to unlock real estate value. That's where Hbc comes in.

in fact, Hbc is the only retailer in the sector that's been able to actually start numerous riets/jv. This allows macy's to roll their real estate into the Hbc joint riets and thus allows a expedient public offering.

baker even said in the last call there is nothing stopping them from taking the riets public immediately in last earnings transcripts. Though, the more diversified the property the better the value to a riet public offering. 

Also, one must Remeber that their CFO is Beesely- whom was the master of the sobey's riet. 

I also view Hbc headquarters heading south before macy's come to Canada because of trump. He would congratulate the "repatriation" of saks / lord and Taylor ownership to US soil, and also say, look even the Canadians are coin to the US. On the other hand, it would look bad for Macy's to pick up and leave- Remeber burger King?? One may say, well corporate tax is lower in Canada. BUt if you payed attention- trump is going to roll back corp tax to be in line with Canada, -in fact a company could pay more in tax in Canada than the US because of the unknowns of the carbon tax afterbirth he drops the corp tax rate.

macy's pays a healthy dividend which could be slashed & therefore giving oodles of cash flow and the ability to actually grow and help flush out all value.

even if Macy's paid double today's price for all shares outstanding of Hbc, it would only be 2.7 billion US

this is just my opinion but I see a buy out of Hbc at around 20-26$ a share cdn and or share swap cash deal for that amount per share. 

Time is of the essence, this needs to happen In this sector and I believe HBC to be the beneficiary in the end. It will allow Macy's to save so much on admin as well unlock their real estate in an expedient  fashion. 

This is all my opinion, I study balance sheets and know these companies well after following for a long time. 

Good luck to everyone. Maybe Next week will bring an early surprise.

take care have a safe weekend everyone.

[MrBigger]

5 stars for U Buddy!! I agree.

[Alan69]

Thank you. I wanted to add, it's also inconceivable that macy's would move to the TSX. HBC has never been fully valued because it's listed on the tsx and not NYSE. Therefore aside from the other things I've outlined in the previous post lead me to believe Hbc will be moved south. The days of tax inversion are over, and I believe the opposite will happen. we will see companies such