Macy’s Exit Signal

Last night I received a stockspotter exit signal for Macy’s (M).  The long recommendation earned 1.37% after staying in for 9 days.  This was a great call considering that the stock lost 2.15% during today’s slump.  I know I’ve been a bit pessimistic lately but, overall, I like Macy’s and believe it’s sound fundamentals make it worthwhile future investment.

Although Macy’s balance sheet looks a bit bloated, its definitely headed in the right direction, with cash and short-term investments up $171 million from last year to $1.15 billion while total debt fell more than $1.1 billion to $7.08 billion

On the chart, shares had been a bit flat for the last few months before spiking into a new multi-year high on the good quarter. But in spite of the solid gain, the stochastic below the chart is signaling that shares are still trading far away from overbought territory. Look for support from the long-term trend on any weakness, take a look below.

Additional Company Info: Macy’s, Inc., together with its subsidiaries, operates department stores and Internet Web sites in the United States. Its retail stores and Internet Web sites sell a range of merchandise, including men’s, women’s, and children’s apparel and accessories, cosmetics, home furnishings, and other consumer goods. The company also operates Bloomingdale’s Outlet stores that offer various apparel and accessories, including women’s ready-to-wear, men’s, children’s, women’s shoes, fashion accessories, jewelry, handbags, and intimate apparel.

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