Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, May 29, 2015

Article Excerpt

NORDSTROM INC., $72.64, New York symbol JWN, has formed an alliance with Toronto-Dominion Bank (Toronto symbol TD), a recommendation of The Successful Investor, our newsletter that focuses on conservative Canadian stocks. Under the deal, TD will purchase Nordstrom’s credit card loans, which total $2.2 billion. To put that in perspective, Nordstrom’s market cap (or the value of all of its outstanding shares) is $14.0 billion. Nordstrom will still get part of the revenue from these credit cards and will keep managing their related loyalty plans. The companies expect to complete the deal in the second half of 2015. Separately, TD has agreed to become the exclusive issuer of Nordstrom-branded Visa and private-label credit cards. Nordstrom will probably use the proceeds to pay down its long-term debt of $3.1 billion, which is equal to 22% of its market cap. Or it could choose to buy back shares or raise its $1.48-a-share dividend, which yields 2.0%. Nordstrom is a buy. Nordstrom was recently covered in the Wall…