Ackman May Be Active, But Not at Sears

With the news that Target (TGT) has agreed to sell $3.6 billion worth of credit card receivables to JP Morgan (JPM), one cannot help but notice Ackman has not made a single demand from Edward Lampert at Sears holdings (SHLD). This would be the only investment in memory he has taken such a stance.

Ackman was at Sears' annual meeting and did ask a few benign questions. According to Ackman, his 5 million share investment in Sears "is due to Eddie Lampert".

Now some will say that Ackman has been quiet because "he knows Lampert" or some such foolishness. Let's be honest, you do not invest over $500 million and keep quiet if you think things are not being done properly. Last time I checked, Ackman was loath to not speak up when he thought management was not doing the proper things.

Now, some out there have claimed Lampert's statement that Sears was "cutting costs" means he "took the late train". The assumption must be that because he only talks to the public about four times a year, that when he says something it only happens from that point on? It has not been an ongoing effort? This is just disingenuous at best and totally dishonest at worst. These are the same folks that have complained for the past two years that Lampert has "cut costs too much" at Sears and the retailer has suffered because of it. Let's get the story straight. Which is it? Is he late cutting costs or has he cut them too much?

Now let's look at it. Other retailers like JC Penny (JCP) and Macy's (M) are taking on additional debt to get through the current environment. Target (TGT) is shedding valuable assets. Only Wal-Mart (WMT) is thriving. Sears, suffering like the rest of the industry, is actually repurchasing stock and paying off debt, improving an already industry best balance sheet.

In short, Lampert is acting like a guy who is in this thing for the next few decades, not quarters.

Disclosure: Long SHLD, WMT.

Comments

[MSF]

Dear Todd,

Let's get a few things stright first.Do you own Sears stock or are you long in opinion.I have read that you do not own Sears stock,please answer this question.

The run up on Sears in the past years was because small investors as well as large thought they were buying into a hedge fund type stock without the large capital investment.

So yes there is money on the balance sheet however,it is dropping every day and quarter, as well as the earnings.

Lampert is rich and he is making money off of his fees in his hedge fund.His performance on investing the surplus of cash is sears is not working,,,all he is doing is buying back stock of sears ,at a much higher price no less.

[MSF]

Just a note,I heard cramer is now saying not to buy Sears.

He was pumping in up and saying to buy it all the way up to $185.

Why has he not put Cramer on his stupid hall of shame,,,oh that's right it's his buddy pal.

what a moron.

"LOSE MONEY'' STARRING JIM CRAMER

[MSF]

CORRECTION ABOVE,,WHY HAS HE NOT PUT LAMPERT ON HIS HALL OF SHAME.

I CALLED THE SHOW NUMEROUS TIMES AND HAVE GOT NO RESPONSE.

[bulrun100]

QUESTION DO YOU OWN SHARES? I DO IF YOU DON'T WHY ARE YOU HERE JUST TO BASH BECAUSE YOUR SHORT?iF YOU DON'T OR ARE NOT SHORT WHY WOULD YOU BE HERE?DO YOUR RESEARCH OR GET OUT!

[MSF]

I DID MY RESEARCH AND SOLD MY SHARES.

LAMPERT AND THE BOARD OWN CLOSE TO 55% OF THE COMPANY.

IN OTHER WORDS YOUR VOTE DOES NOT MATTER.

SELL YOUR SHARES AND GO SHORT ONLY FOOLS WILL STAY IN.

[MSF]

WHY ON EARTH WOULD YOU INVEST IN A COMPANY THAT OFFERS NO GUIDANCE,DOES NOT CARE ABOUT SHAEHOLDERS BECAUSE INSIDERS OWN THE MAJORITY SHARES OF THE COMPANY AND WHEN THEY DO TALK IT IS TO SAY HOW BAD THEY ARE DOING.

[MSF]

OH WAIT ,,IS IT BECAUSE IT IS EDDIE LAMPERT,,,,,,GIVE ME A BREAK HE IS NOT NO BUFFET.

[MSF]

Todd,,,,are you going to answer my question.

[College Analysts]

It says right at the end of the article he owns SHLD.

[butterflydddd]

<img src=" i189.photobucket.com/albums/z167/butterf... ; border="0" alt="Photobucket">

[butterflydddd]

Oooops, I am but a high school grad; but if you buy stock low; and you have the mostest, who has the BIGGEST TOY?

[MSF]

THE ARTICLE SAYS HE IS LONG SEARS,,,NOTHING SAYING HE OWNS THE STOCK.

[MSF]

ACKMAN SAID HE CALLED ESL INVESTMENTS TO SPEAK WITH LAMPERT FOUR TIMES AND NEVER GOT A RESPONSE.

HE IS THE FOURTH LARGEST SHAREHOLDER OF SEARS.

IT SEEMS THAT IS WHERE THE CUSTOMER SERVICE COMES FROM SEARS EMPLOYEES.

[MSF]

TODD ARE YOU THERE.

YOU MUST BE LOOKING AT YOUR BLOG.

[MSF]

I THOUGHT SO,,,,,,,

[MSF]

Let's keep eating bananas.