John Mooney (M, KSS)


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

The financial exchange for Barry and chuck is live on FaceBook and YouTube every morning beginning at ten. This is the financial exchange radio network. This segment of the financial exchanges brought to you by leader bank if you're looking to diversify your portfolio. Precious metals are Smart investment golden silver bullion coins are now available at all leader bank locations to call 8776917900. Or. Log on to leader bank dot com for more information member FD. I see. John Mooney joins us now frequent contributor frequent co host here on the financial exchange with talk about retail stocks. John how are. I'm a couple here makes pieces one that jumped out it's kind of interesting year. Chuck. There that there is thought about the fact that we just heard there's going to be hiring additional 7000 workers part time beyond. But thousands have been announced before. Added on and that's because of additional demand and the other stock is really interesting it's a 6% dividend it's only eleven times PE which is very cheap. And there's a real estate play here fierce battle some incredible properties in New York City Chicago and San Francisco. That probably by themselves. Is worth more than the stock price in addition the real estate they own elsewhere. And the really interesting thing about my Macy's is they're actually say what they have a real estate that's illiquid. You're actually monetize in the real estate chuck because like in New York they have this massive place. There are higher floors they're leasing out at high dollars. Two industries outside of retail that need that guy able real estate so they're finding ways to monetize he had been running it better. They easily covered their dividend there's still more or like two dollars and fifty cents next year cost about a buck and half their dividend so. It's appealing valued daily plate what. What about just as a pure retailer mean that there's not much there to melting ice cube right. I disagree. They're doing something to prove they're improving and they're the product mix for sure they are striking striking the export content closing lots of under performers. They're trying they're doing better fashion and I think the most appealing thing yours stay at this concept called backstage. Which everybody told a mission done like 56 years ago they didn't wanna cannibalize their business. Basically you know we that we that we go to marshall's right in by woods at Macy's 25% cheaper yeah well. They can do the same thing and what they're gonna do with the bigger restore or it will about a hundred of these and I think you'll see more than the largest source like the wiggled throughout English. Will Obama's war. Think about like a Marshall heights store. That has heavily discounted products with them restore. But it's not gonna cannibalize their business because let's say your pets sizes whatever. You go in there and like one week ago and a half that in backstage yup and actually they're not so it's gonna have to hunt which is part of what hole. Argument from marshalls and TJ Max is with out I don't think cannibalizing their business. And the bottom and they're they're still making a lot of money I mean they easily cup victory that looked interesting point that someone made an analyst they said yeah yeah. He got this big dividend but that's the warning sign usually. And like BC EO Jeffrey give it doesn't horrible job of promoting his business said. You know if you look at the stock that's right. But if you look at the business. There's no reason why we campaign is different and I thought to myself my gosh that's like a product that's what good signal. What what about Iraq Coles would receive from them they've they've found some stability in the last year it seems like. Yet polls is obviously better positioned near term. They don't want to do from all the issue they're not involved they know their customer really well but tomorrow at least 20% 30% off. Deals that they sent direct to consumer debt the cold cash. They appear very safe four point 6% dividend. I slowly declining business part. In both cases both called in Macy's they're growing they're small online business double digits. Dipped by the time as they transition. It would on the channel retailer and that's where we end up all these people to be doing. Multiple ways of getting that product to you it's not good just bottom line it's not going to be just bottom line pick up the door open to whatever that dollar. And it's not going to be just in sport and I think these two companies survive in this on the channel retail business. And they're much. Cheaper than beloved stocks. Gergen John thank you very much for the time gets over the soon. John Mooney talking about Macy's with a ticker M and Coles with a ticker KS ass.