J.P. Morgan recommends selling all Macy's bonds. (recommendation is predicated on sluggish sales) (Brief Article)

Daily News Record, October, 1991 by Ciampi, Thomas

NEW YORK (FNS) -- A recent run up in prices and continued weakness in the consumer sector has prompted J.P. Morgan & Co. analyst Michael N. Cha to recommend selling all three R.H. Macy & Co. bond issues, a reversal of his July opinion to buy the retailer's bonds.

Cha says his earlier purchase recommendation was predicated on a pickup in retail sales during the current quarter ending this month.

"However, we have yet to see any sings of a recovery for the holiday season, and given the recent increase in Macy's bond prices, we feel that the majority of the price risk is on the downside," Cha said.

August was apparently a weak month for sales, Cha said. Macy's September comparable-store sales were up 4.2 percent and while October sales were off...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.