Macy’s Has an Activist Investor
Photo by Stephan Kelle / Unsplash

Macy’s Has an Activist Investor

Plus, explaining the energy rally.

Steven Lerner
Steven Lerner

Today is Friday, October 15, 2021.


Macy’s Has an Activist Investor Eyeing Digital Spinoff

Shares of Macy’s (NYSE: M) were up 2.85% Thursday after the Wall Street Journal reported that Janna Strategic Investments, which took a stake in the company, wants to spin-off the retail giant's e-commerce business.

Recent History: A partner with Janna reportedly said at an investing summit last week that Macy's could sell its e-commerce business, which would double the current valuation of the digital business from $6.9 billion to nearly $14 billion.

Background: While it is unknown how much of a stake Janna has in Macy's, the investment firm does have a history of forcing changes at other companies such as Bloomin' Brands (Nasdaq: BLMN), which is the parent of Outback Steakhouse.

Data: It's been an incredible year for Macy's stock, which is up over 105% in 2021.

Final Thoughts: Macy's e-commerce sales have doubled in the past four years, which explains why that part of the business is so valuable.


Notables

Notable Earnings Today: Goldman Sachs (NYSE: GS), PNC Financial Services (NYSE: PNC), J.B. Hunt Transport Services (Nasdaq: JBHT).

Notable IPOs Today: Biofrontera Inc. (Nasdaq: BFRI), Augmedix, Inc. Common Stock (Nasdaq: AUGX), Cingulate Inc. (Nasdaq: CING), Achari Ventures Holdings Corp. I Unit (Nasdaq: AVHIU), MiNK Therapeutics, Inc. Common Stock (Nasdaq: INKT).

Notable Equity Crowdfunding Campaigns Ending Today: Sol Bistro St Pete (MainVest), Burger Boys (MainVest), Hemp Real Estate Investment (Fundanna), Uncorked: Daiquiris & More (MainVest), Marinas Cafe Chicago (MainVest), Claro (Republic), Supreme Foods Franchising (TruCrowd), ACQ Bread (MainVest).

Notable Economic Events Today: Retail Sales (8:30 a.m. ET), Import Price Index (8:30 a.m. ET), Export Price Index (8:30 a.m. ET), Empire state index (8:30 a.m. ET), Consumer sentiment index (10:00 a.m. ET).


Energy's Recent Rally, Explained

Overall, shares of energy stocks are up roughly 50% this year and are outpacing the broader market. Before you jump in and invest, here are some reasons why the sector has been so hot this year.

Higher Prices: Due largely to pandemic-driven supply chain challenges, global prices for oil, natural gas and coal are up. This is good for most stocks in the space, and it is forcing others to focus on solar energy, which might be more cost-friendly now.

Good Value: Many energy stocks got hammered in 2020 due to the pandemic. That transformed these stocks into value plays with good price-to-earnings ratios.

Big or Small: Large legacy energy stocks offer dividends with high yields. But, small cap stocks have the benefit of potentially merging with the larger stocks, thus making them an attractive gamble.

Final Thoughts: Yes, energy stocks have been on fire so far. But if the rally is over, it might be too late to jump in.


Coinbase Publishes Crypto Regulatory Suggestions

On Thursday, cryptocurrency platform Coinbase (Nasdaq: COIN) released a new regulatory framework aimed at giving federal regulators a blueprint for how to supervise the crypto industry.

Details: Some of the provisions suggested by Coinbase include regulating digital assets under a separate framework, designating one regulator for digital asset markets, protecting and empowering holders of digital assets, and promoting interoperability and fair competition.

Additionally: The proposal from Coinbase comes just one day after venture capital firm Andreessen Horowitz said that it was going to make a proposal for crypto regulations.

Numbers: Shares of Coinbase jumped 5.36% on Thursday. Prices for most cryptocurrencies, including Bitcoin, also increased as well yesterday.

Bigger Picture: There's been a lot of talk from Washington lately about how to regulate cryptocurrencies. It was originally included in the infrastructure bill passed by the Senate over the summer.

Final Thoughts: While regulators are not likely to take Coinbase's proposals too seriously, it is a common sense step in the right direction.


Mark Your Calendars: SEC could approve bitcoin-futures ETFs as early as Monday (Seeking Alpha)

Pushed Back: Virgin Galactic delays beginning of commercial spaceflights to fourth quarter 2022, stock falls 13% (CNBC)

Labor Movement: John Deere workers go on strike after rejecting wage deal (CNN)

Hot Crypto: Canadian city plans to supply residents’ heat using Bitcoin mining (CoinTelegraph)

Big First Day: Coding platform GitLab valued at $14.9 bln in strong market debut (Reuters)


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