Wednesday Wrap-Up: Constellation's Getting High
Happy hump day.

Happy hump day.

Let's go over the top stories from TheStreet.

Is Sears Dead?

TheStreet's Brian Sozzi says it's not there yet, but there are clues that it's on it's way.

Sears (SHLD) chairman and CEO Eddie Lampert wrote a letter to the board (which is weird because Lampert controls the company, in effect he is writing himself) released on Tuesday evening (it's always after-market hours with Sears) offering to buy what's left of the Kenmore home appliances business. In the letter, Lampert offers several clues that Sears could be headed into its final holiday season amid a major cash crunch. 

The company ended the first quarter with a mere $466 million in cash ahead of shipments of the all-important back-to-school, early fall shopping seasons. That's a terrible position to be in for a retailer of Sears' size. It's reasonable to expect the company had another brutal second quarter and suppliers are getting worried about being paid for the holidays. This isn't rocket science stuff, it's standard procedure for retailers that are falling apart—we have seen the script before. Shares are down 51% in three months for a reason.

Ouch.

Constellation Feels Bullish on Budding Industry

Constellation (STZ) just dumped $4 billion into Canopy Growth (CGC) .

"Overall, we think Constellation's increased stake in WEED/CGC (the largest investment to date in the cannabis space) is very positive and further accelerates another avenue of growth," says Wells Fargo analyst Bonnie Herzog.

"Canopy is an important company, of all the Canadian names selling marijuana it refines the product and makes the product into different formulations such as soft gell caps," Jim Cramer told TheStreet. "It's products could be commercial," Cramer explained, adding he was bullish on Canopy's new sleeping pill.

Whew. 

The Rise and Fall of Macy's

What goes up has to come down.

"While there are good reasons for the slowdown in sales growth, and although underlying performance is respectable, the decline in total sales and the virtually flat comparable numbers look bad. This is likely spooking some investors and has raised questions over how sustainable Macy's recovery is," Neil Saunders, managing director of GlobalData Retail, told TheStreet after the earnings call.

TheStreet's Michelle Lodge reports that Macy's beat estimates in same-store sales: They came in up 0.5%, whereas consensus estimates predicted a decline of 0.9%.

Macy's (M) on Wednesday also raised guidance for fiscal 2018 and now expects adjusted earnings per diluted share of $3.95 to $4.15, excluding anticipated settlement charges related to the company's defined benefit plans as well as impairment and other costs. The company expected total sales to range from flat to a 0.7% increase compared with 2017. Macy's estimated comparable sales on an owned plus licensed basis would go up between 2% and 2.5% for the second half of 2018, which works out to a yearly upswing of 2.1% to 2.5%.

That's a wrap for today. Stick with TheStreet through the rest of the week.

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