We think your patience will pay off with Hudson’s Bay Co.

Article Excerpt

Investors in these two Consumer-sector firms have seen recent share price gains—one is the result of a takeover offer; the other is due to a promising restructuring plan. These positive developments bode well for your long-term returns, but we suggest you hold off on new buying at this time. That’s because investors could easily give up their recent gains if the takeover for Hudson’s Bay falls through and if consumer spending weakens in the near term. HUDSON’S BAY CO., $9.15, is still a hold. The department store operator (Toronto symbol HBC; Consumer sector; Shares outstanding: 184.1 million; Market cap: $1.7 billion; Dividend yield: 0.5%; Takeover Target Rating: Highest; www.hbc.com) recently accepted a $10.30-a-share takeover offer from a group led by Richard Baker, HBC’s chairman. That new bid for investor shares is 9.0% higher than Baker’s first offer of $9.45 a share. He currently controls around 57% of the shares. Approximately 78.5% of the company’s shareholders need to approve the deal for the privatization to go ahead. However,…