While I'm bullish on the stock (it's a CAPScall) Francis' sudden departure does not bode well for the near term. His leaving leads me to believe that management is seeing sales continue to be ceded to Macy's
This quarter's same-store sales results could be even worse (year-over-year) than last quarter's. This possibility seems even more probable given Fool Sean Williams' observation that the winter and early spring were unusually warm this year (boosting last quarter's year-over-year results).
If this is the case, the stock will likely plummet even further, making a cheap stock even cheaper. This is why, if you don't already own shares, I'd recommend waiting until after the next conference call. If the news is good the stock will jump, but much of the uncertainty will be off the table. If the news is bad you'll be able to buy at a vastly better price.
To those of you who already own the stock -- and own it for the right reasons -- I would not panic. In his report to shareholders on June 12, Bill Ackman confirmed that he thinks the stock is "extremely cheap at current prices and that it offers one of the best potential opportunities we have seen for long-term profit when compared with the risk of a permanent decline in value from today's share price."
Given that his hedge fund, which is partnering with Vornado
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Fool contributor Chris Baines is a value investor. Follow him on Twitter, where he goes by @askchrisbaines. Chris' stock picks and pans have outperformed 96% of players on CAPS. He owns no shares of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.