- Simone Preuss |
One of the biggest news yesterday was the new partnership between US specialty retailer Gap Inc. and Zalando (ZAL), Europe’s largest online fashion retailer. Following the announcement, Zalando's shares rose by 3.3 percent.
In May 2015, Gap will open an online shop on Zalando's platform, and will start selling clothes for women, men, children and babies. The retailer hopes to make its fashion available to a broader European customer base, especially in key market like Germany for example where Gap is currently not present. Zalando is keen to expand its offer with a popular US clothing brand.
Canadian department store operator Hudson's Bay (HBC) announced a 1.25 billion US dollar refinancing plan on Monday, after which its shares jumped by 9.4 percent. The move is supposed to reduce interest payments on debt that Hudson's Bay took on after it bought US rival Saks last year.
Hudson's Bay will take out a 20-year mortgage on the ground portion of its flagship Saks Fifth Avenue store in New York City, which was recently valued at 3.65 billion US dollars, significantly more than what Hudson's Bay paid to buy all of Saks, raising the question if Saks sold itself too low.
Hudson's Bay CEO Richard Baker calls the property "the most valuable retail building in the world" and according to RBC analyst Sabahat Khan, the transaction "highlights the substantial value of HBC's owned real estate portfolio, reduces its interest expenses and extends its debt maturities".
Last but not least, US apparel retailer Aeropostale (ARO) was flagged as a "strong on high relative volume" stock. Trade-Ideas LLC identified Aeropostale as such a stock because it has an average dollar-volume of 7.3 million dollars, traded 282,299 shares yesterday and traded 3.25 times the normal stock volume as well as at a new high of 4.04 percent above the previous day's close.
Trading insiders consider 'strong on high relative volume' stocks as worth watching as they can indicate the start of a new trend that early investors can capitalize on. Major volume moves also tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying and others.