Out Fox The $treet

  Kohl's reported a mixed FQ2'22, but the company gutted FY22 guidance. The department store retailer only forecasts a FY22 EPS of $3. The stock trades at below 5x a more normalized EPS target when the macro situation improves. While hopes existed that the retail sector would maintain most of the sales from covid boosts, a lot of retailers outside of food and gas aren't faring very well.  Kohl's  ( NYSE: KSS ) is a prime example  of a retailer failing to match elevated profits from 2021 leading to the stock actually trading lower now despite improvements in the actual business during the period. My  investment thesis  is ultra Bullish on the stock trading in the low $30s, as investors just have to throw away the results for the rest of the year. Read the full article on Seeking Alpha.  Disclaimer: Long KSS. Please review the disclaimer page for more details. 

  Kohl's activists want the company to sale-leaseback up to $4 billion worth of real estate. In theory, the company could boost EPS substantially by repurchasing shares, but actual net income would fall. The stock is cheap at only 7.5x FY22 EPS targets while trading with a market valuation equal to real estate holdings. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » Activists continue to circle at the gate due to  Kohl's  ( KSS ) being an extremely cheap stock. The company has very valuable real estate on top of a strong earnings stream which is why a group of activists are lining up to bid on the retailer. My  investment thesis  remains very Bullish on the stock trading at 7x FY23 EPS targets. Read the full article on Seeking Alpha.  Disclosure: Long KSS. Please review the disclaimer page for more details.  Update - March 21 Kohl's didn't provide much in the way of details ...

  Kohl's has activists wanting the company to spin off the e-commerce division to unlock value. The company already has plans to grow the business and activists have yet to show how a full omni-channel business can operate as two different companies. The stock is absurdly cheap at 7x EPS targets and Kohl's will repurchase over 15% of the outstanding shares this year. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street.   Learn More » After an outstanding quarter with business booming,  Kohl's  ( KSS ) faces activists wanting to break up the business. The omni-channel retailer is facing the same pressure as other department stores to separate the e-commerce business in what amounts to financial engineering. My  investment thesis  remains very bullish on the retailer as the company reinvents the shopping experience. Read the full article on Seeking Alpha.  Disclosure: Long KSS. Please read the disclaimer page for m...

Stocks to watch on Thursday: Kohl's (KSS) - the retailer is back trading at the yearly lows following a guidance cut for 2019 EPS due to investments in driving traffic to their stores as the company adds new brands. Today completes the 3-day rule and the stock is holding a higher low so far. Kohl's is a buy here. More research: Don't Overreact To Headlines Canopy Growth (CGC) - the stock has soared over the last couple of days due in part to a bullish analyst call by BofA and the news of the House Judiciary Committee voting in favor of the MORE Act which favors decriminalize marijuana. The stock has broken the downtrend, but investors should expect a quick reversal here as nobody expects the Republican controlled Senate to vote in favor of the MORE Act. My view the stock is on a path to $10 hasn't changed. More research: Canopy Growth: Still Rich Over $10 Disclosure: Long KSS. Please review the disclaimer page for more details. 

Stocks to watch on Tuesday: Aurora Cannabis (ACB) - the stock is headed towards $2 and fast. The cannabis stock has plenty of support around this level, but investors should be careful trying to catch a falling knife.  The stock valuation reaches $2.4 billion, but a lot depends on the amount of dilutive financing needed to fund ongoing operating losses. Kohl's (KSS) - the department store retailer had a mixed report with decent revenues while cutting EPS estimates due to extra costs. The dividend yield is a ridiculous 5.6% after this dip. The stock is now testing the lows from the summer sell off. Slack (WORK) - my previous research questioned valued above $17.50 and the news about top competitor Microsoft (MSFT) adding millions of new Team subs is highly concerning. Previous research: Slack: Wheels Just Fell Off Disclosure: Long KSS. Please read the disclaimer page for more details. 

In the midst of the retail wreck today, lets not forget that Kohl's (KSS) raised guidance for the year. The retailer now expects to earn $5.53 per share. The stock is down an incredible 9% to $63 on the guide up.

Summary Kohl's turned flat revenue into yearly earnings growth due to a large stock buyback program. The retailer is trading at multi-year highs despite the less than thrilling earnings growth. The stock gains are limiting the stock buyback benefits just as some risks mount on the horizon. After years of large stock buybacks and a struggling stock, Kohl's Corporation (NYSE: KSS ) investors are finally seeing a large payback. The stock recently surged from $60 to $70 based on strong preliminary Q4 comp sales numbers. After several quarters of missing earnings estimates, one has to wonder if investors are getting too excited over one strong quarter. Read the full article at Seeking Alpha. Disclosure: Long KSS. Please review the disclaimer page for more details.