Macy’s: Still opportunity on the short side?
Stephen Roseman on Seeking Alpha thinks so. He outlines 5 of the major issues facing this behemoth of a department store. Here’s one of his most damning points:
The company hoped to use its coming year operating cash to pay down its burgeoning $9.8 billion debt load (see Q3 conference call transcript). $950 million of debt comes due in 2009. It looks like Macy’s will have to dig into its short term credit facility to cover that shortfall. That’s a temporary fix. The company will need to find longer term financing (bonds for Macy’s are trading at 14 to 15%) and Macy’s will need to refinance more debt coming due in 2010 and 2011.
Indeed, Macy’s outlook is ugly. But a lot of stocks that look ripe for shorting have proved quite resilient, so use caution.







