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) 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.