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Today we are watching…
1. Cotyย (#cotyinc)
Cosmetics arenโt worlds away from hand sanitizers, which explains why Coty has been able to produce them so quickly for use by medical and emergency services fighting the virus outbreak. Coty employees will also receive their benefits. Workers in plants and distribution centers can keep operations going; as a result, meaning orders arenโt set to grind to a complete standstill. The stock was a huge winner yesterday, soaring over 20%. Stepping up to the plate with these designer hand sanitizers might be the next coronavirus craze. What would a collection be worth in twenty yearsโ time?ย
2. Macy’s (#macys)
Markets have had a wild week, and so has Macyโs for all the wrong reasons. The famous retailer was struggling pre-coronavirus with footfall drying up and brick-and-mortar leases, leaving only wafer-thin profit margins. Yesterday, its bonds were downgraded to โjunk quality.โ In other words, the companyโs debt (including leases) is so unlikely to be paid back that any loan contract with Macyโs is considered โjunkโ by one of Americaโs big three rating agencies, Moodyโs. The retailer is on borrowed time, having just closed all of its stores. If the bondholders arenโt getting paid, common shareholders probably donโt stand a chance. Tick-tock!