Benj GallanderHudson Bay Co.HBC.TODON'T BUYApr 23, 2019

Nicknames it Hit By A Car like its chart. HBC is all about its real estate holdings; that's the reason you own this. Doesn't know if the current rally signals a buy. Can't predict this chart. Even consider selling it.

It's a saga. The latest is that an activist has come in during this sale to complicate things. We'll see where it goes. A few parties want to buy it and see more value than the current share price. But overall he's not positive about HBC.

The Chinese trade was has been so negative for commodities as a whole. You should never fall in love with commodity stocks, they are just too cyclical.

They've been on a rocky road. Beyond the headline noise, what do they have? They're in a secular (department store) decline as people buy online. Their assets being in real estate is an old story and not convincing now. Look elsewhere.

(A Top Pick Jun 28/18, Down 12%) This is a real estate play. What drags this down is the brutal retail space. They need to close some stores and it's likely in progress now. This will rise eventually rise above $10. They need to make better use of their prime real estate and to do it sooner than latter--they are generating negative cash flow.

Closing stores should be part of their strategy. There needs to be more definitive action by the management team. Management understands how expensive it is becoming to run a traditional retail operation. Digital and e-commerce products are making it very competitive to run a business. The real estate they possess is very valuable and it may be put to better use than retail. The deal being offered to HBC-T is very low at just $9.45 per share -- the real estate is worth $30 per share alone not including the value of their inventory. He thinks the minority shareholders will feel the offer is far to low as well.

They want to privatize the company and it is trading below the take out price, so she does not expect a competing bid. She is not sure if there is an expiry on the offer, but this is a good time to sell if you are a shareholder.

Real estate worth it? Not a company that he ever liked. Thinks the operating business is very difficult. They have to come to the understanding that they need to have much smaller stores. Sure, some of their locations are great, but there is a lot of other Hudson's Bay that aren't so great. Wouldn't touch it.

He got out a few years ago. He thought he was protected by the real estate portfolio. He left the retailers and stuck with AMZN-Q. The retail business is tough. They are looking at more asset sales such as Lord and Taylor.

(A Top Pick Nov 16/18, Up 3%) Totally news driven. Disappointed with it. He sold it and wouldn't buy it today. He bought it because it was cheap at the time. If you hold, continue to hold.

He owned it years ago. It got taken over and he did really well. They had a lot of difficulties. Retail is not going to die. He never sells to take a tax loss in December but if you want to get it off the table, then match it up against winners. Ask yourself why you bought it and ask if it still makes sense. Stay disciplined but learn from your mistakes.

Pretty good company fundamentally. Moving in a range, not bad. Look for a rebound back to the top of the range. Not a bad-looking chart in the context of what else is out there.

A massively discounted stock price, he thinks. There have been a lot of concerns about the company, but most of them are being adequately addressed. The European business they own is worth the entire current share price alone. They also own the Sak’s property in New York and other great real estate holdings.

(A Top Pick Nov 06/17, Down 31%) A disappointment. They continue to bottom. He exited. They've been bleeding money and are negative EBITDA. The new CEO is doing a alittle better by selling off some of their lines to return to the core business. Retail is slightly better and they carry some real estate value. But their balance sheet is stretched. They should've sold their Vancouver property sooner.