[competentone]

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 think that 1988 Carrera might have same major issues -- that's why it's so cheap. Better get a good PPI.

NEW YORK, Oct 15 (Reuters) - Moody's Investors Service changed its outlook on Macy's Inc to negative from stable, indicating a rating downgrade into junk territory is more likely over the next 12-to-18 months.

*****

The "Baa3" rating is the lowest investment grade. Downgrades into junk territory can substantially increase a company's borrowing costs.

"Should operating performance decline by more than the company expects, then -- barring other changes in the company's capital structure or cash flow expectations -- debt protection measures could weaken further and be more appropriate for a lower, non-investment grade rating," Moody's added.

http://www.reuters.com/article/marketsNews/idINN1531195920081015?rpc=44