Quote:
Originally Posted by Wayne at Pelican Parts
Macy's is at 4.67 PE ratio. Even if earnings get clipped in 1/2, it's a 9 P/E ratio. So, it's 1/2 of cheap. That's like a 1988 Carrera for sale for $12K, but wait, today it's $6K. Daily price swings will happen, if you buy on the fundamentals, in the long run you should be rewarded.
I'll buy some more if things go lower. 7800 was a magic number for me, because that's when I missed out last time (I was out of the states at the time).
-Wayne
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http://finance.yahoo.com/q/ks?s=M
Macy's has over $10 billion in debt. Their debt-to-equity ratio is 1.05.
When does their debt need to be rolled over? What if they are locked out of the credit markets and cannot roll the debt again?
Before buying any common stock in this market, you
need to study a company's debt.
Be careful with "long run" thinking. What happened to "long run" holders of Kmart and Woolworth?
"Time" didn't save those retailers when they got in trouble.
It's a jungle out there; you need to have
really well developed "survival skills" to wade into this market.