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The Company is a broadline retailer. It currently conducts its operations in three business segments: Kmart, Sears Domestic and Sears Canada.
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JonInSanDiego (98.95) Submitted: 8/24/06 7:56 PM : Start Price: $143.56 SHLD Score: 27.06
I'm the contrarian on this one but I just don't see the value. Kmart was a dog. Sears was a dog. Combine them, shine up the floors and suddenly they're terrific? I've been in the stores a few times and there was nothing there that made me want to come back. Perhaps in rural parts of the country these stores play better but in suburban/urban markets, I think that there are better options out there for consumers. Personally, I think he's moving the deck chairs around on the Titanic.
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gjones737 (< 20) Submitted: 9/05/06 10:23 PM
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Sears is reinventing itself. Huge cash reserves and all that's left is to decide what they want to be when they grow up. Forget the stores--they're going to get out of the retail side sooner than later. Not a bad idea to concede to WalMart, Target, Costco, etc. at this point.
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investomania (77.78) Submitted: 10/05/06 8:54 AM
It's all about the cash flow buddy. Giving Eddie Lampert cash to play with is somewhat similar to giving Warren Buffett extra money to invest. Good things happen. Eventually, there will be no more Sears and Kmart. Sears holdings will be going gangbusters...
Allstar13913 (99.88) Submitted: 10/05/06 12:58 PM
Its the real estate thats valuable.
kristm (99.86) Submitted: 10/27/06 10:57 PM
"Perhaps in rural parts of the country these stores play better.."In rural parts of the country Wal-Mart kicks this one around... My area is very rural and everybody hates on K-Mart / "Big Gaymart." The local market is absolutely littered with abandoned, graffiti-covered, unsellable K-Mart shells.
carlene56 (< 20) Submitted: 12/22/06 12:01 PM
I agree with the shopping. However, the real estate the stores have is pretty terrific.
concertayouch (21.31) Submitted: 2/16/07 11:44 AM
You are looking at this for all of the wrong reasons. This is not a retail play. This is not about bringing K-Mart and Sears back to glory or taking on WMART or Target. This is a Real Estate and cashflow investment play.
dexion10 (31.70) Submitted: 3/09/07 9:05 AM
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I haven't seen anybody who has clearly explained the optimism about Sears Holdings. There are really three key bull cases here.1. Management is worth a premium becuase of the track record2. Balance Sheet is under-levered (too little debt). They can take out debt and buy any cash generating business they want - doesn't have to be retail - Worth Noting Berkshire Hathaway has a similar debt to equity ratio 0.3. So that is why people speculate you're looking at the next Berkshire - they just haven't started buying other businesses yet... but they can. 3. Dependable cash flow can also be re-invested outside the Sears franchise.Right now you have little else to value except the retail business but that is not likely to remain the case. The stock trades at a ho-hum multiple despite it's superior management (Eddie Lampert)... he is worth a premium.
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