Kohl's (KSS)...What am I not seeing??

C

Cabin111

As I write the stock is at $17.30. From Yahoo! Finance the Jan 21 $17.50 covered call, sale to open.

KSS210115C00017500 2020-04-15 11:24AM EDT 17.50 5.00 4.80 5.00 -1.08 -17.76% 2 127

If J. C. Penny is gone, most people have to go somewhere. Kohl's has worked out a system with Amazon for returns...People may buy stuff while they are there. If and when the economy gets going again, come Christmas time, they MAY walk into Kohl's.

Just saying a $4.80 option for a stock that is selling at $17.30 may not be that bad...
Or wait till the stock drops another 20% then do the same type of option (covered call).

Before the bloodbath, a dividend of almost 15%, and a P/E ratio of 3.95...Is there value that I don't see??

Thoughts...
 
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Dividend is not even close to safe.

Current environment may offer further programs with AMZN. Maybe even purchase.

As a standalone, KSS is positioned wrong... between Target and Macys.

JMO
 
Cabin111 said:
As I write the stock is at $17.30. From Yahoo! Finance the Jan 21 $17.50 covered call, sale to open.

KSS210115C00017500 2020-04-15 11:24AM EDT 17.50 5.00 4.80 5.00 -1.08 -17.76% 2 127

If J. C. Penny is gone, most people have to go somewhere. Kohl's has worked out a system with Amazon for returns...People may buy stuff while they are there. If and when the economy gets going again, come Christmas time, they MAY walk into Kohl's.

Just saying a $4.80 option for a stock that is selling at $17.30 may not be that bad...
Or wait till the stock drops another 20% then do the same type of option (covered call).

Before the bloodbath, a dividend of almost 15%, and a P/E ratio of 3.95...Is there value that I don't see??

Thoughts...
More...


Just short the put. Sure, it's a likely 42% return on req, but it's inefficient use of capital. The 10/20 bull spread is a double at $20 at exp.
 
tiddlywinks said:
Dividend is not even close to safe.

Current environment may offer further programs with AMZN. Maybe even purchase.

As a standalone, KSS is positioned wrong... between Target and Macys.

JMO
More...

Just wondering...Where would you position it, if Macy's was gone?? It's not that far of a reach. Even the market doesn't think so...
 
Cabin111 said:
Just wondering...Where would you position it, if Macy's was gone?? It's not that far of a reach. Even the market doesn't think so...
More...

In my neck of the woods, KSS stores are an absolute mess! So as a somewhat upscale retailer, the words don't match the picture. Positioning isn't only about product mix, but also experience. Their pricing is terrible(high) too... but they give Kohls Cash. These type of marketing gimmicks have lost their effectiveness.

Kroger has a department store division... a general merch and apparel store inside a grocery store. This is KSS competition IMO. Not the cheapest, with different and good quality merchandise and apparel that isn't found at Target etc.

JMO
 
tiddlywinks said:
In my neck of the woods, KSS stores are an absolute mess! So as a somewhat upscale retailer, the words don't match the picture. Positioning isn't only about product mix, but also experience. Their pricing is terrible(high) too... but they give Kohls Cash. These type of marketing gimmicks have lost their effectiveness.

Kroger has a department store division... a general merch and apparel store inside a grocery store. This is KSS competition IMO. Not the cheapest, with different and good quality merchandise and apparel that isn't found at Target etc.

JMO
More...

Kohl's Cash brings (mostly women) in!! You watch the history of J.C. Penny (and it's downfall). Much of it came from dropping coupons.

If you have 4 minutes...I miss John (passed away). Very funny...Coupons

 
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Cabin111 said:
Kohl's Cash brings (mostly women) in!! You watch the history of J.C. Penny (and it's downfall). Much of it came from dropping coupons.

If you have 4 minutes...I miss John (passed away). Very funny...Coupons

More...

Just saying if you enjoy that one...

 
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