To The Moon

$Macy's(M)$ has lost about 20-30% of its share price since it last rejected a tender offer.

Given that the company was already in the "sunset" of its industry, the actual asset value is probably more of a concern than the market capitalization.After all, from the performance point of view, the slow decline, the view, the performance decline are within the investors' expectations.

Q3 results: revenue down 3.1%, owned comparable sales down 3.0%, owned plus licensed plus marketplaces based comparable sales down 2.2%.

Also lowered Q4 guidance and weaker than market expectations: full year sales of $22.3 billion to $22.5 billion market expected $22.6 billion and adjusted EPS of $2.25 to $2.50 versus the market's general expectation of $2.73.

But what I found bizarre was its intra-day move: it pulled back from -12% to within -1% and even closed higher at one point.

The question is: what kind of person would want to buy a company with such "bad performance" and "bad expectations"?

My guess is that a deep value investor is either betting on other M&A or is looking to acquire a company that is quietly collecting chips.

In the former case, it thinks its assets have some value, and in the latter case, it thinks the acquisition is not over yet - after all, being acquired is the best thing that can happen to a company like this.