NEW YORK (TheStreet) -- Merger mania continues between Men's Wearhouse (MW) and Jos. A. Bank Clothiers (JOSB) , this time with MW turning the tables and offering to acquire JOSB. Tiffany & Company (TIF) - Get Report also reported a huge earnings beat.
TheStreet's Debra Borchardt spoke to David Nelson, chief strategist at Belpointe Asset Management, who said he was "shocked" by the news that MW was attempting to buy JOSB at $55 a share. It wasn't that long ago that JOSB offered to buy MW at $48 per share.
Either way, both stocks are higher on the news. According to Nelson, it means the deal is something the Street wants to happen. He added that the low-end retail market isn't doing so hot, while the high-end market continues to do well.
This was evident when TIF crushed its earnings estimates. The company "hit the ball out of the park. That's all there is to it," Nelson said.
TIF beat on the top line and surprised investors with a 25% earnings per share beat. Management raised its forward guidance after seeing tremendous strength in Asia and in its comp sales.
But with the stock at an all-time high, what should investors do?
Nelson suggested those who have been long, stay long. As for those not yet involved, he concluded they should wait for a pullback to buy TIF, which will eventually allow for a better entry point.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.