Seeking Alpha

New low for Sears Holdings as questions abound

  • There's little traction for shares of Sears Holdings (SHLD -3.3%) as a new 52-week low is set in early trading.
  • Analysts have beaten up the retailer for its lack of clear direction following its sales report last week and investors have backed off in droves.
  • In a largely ignored corporate blog post last week, CEO Eddie Lampert said Sears is transitioning from a business focused on running a store network to one serving members via digital devices and its Shop Your Way program.
  • Though the company has been hailed before for breaking some ground in the technology field, the transition to a different model is hard to square with the large retail footprint Sears still has to contend with.
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Comments (19)
  • idkmybffjill
    , contributor
    Comments (1718) | Send Message
     
    SHLD debt guaranteed by Sears/Kmart and the retail operation. KCD, etc. are non-guarantors. Basically, if Lampert ever puts Sears into bankruptcy, him and equity holders will come out with the only good parts, leaving bond holders with the crap. This is secret back door out of this mess. Not a good time to be a Sears employee...
    14 Jan 2014, 11:01 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4623) | Send Message
     
    idk,

     

    Which is worth about how much.
    14 Jan 2014, 11:38 AM Reply Like
  • Bouchart
    , contributor
    Comments (803) | Send Message
     
    "CEO Eddie Lampert said Sears is transitioning from a business focused on running a store network to one serving members via digital devices and its Shop Your Way program."

     

    I thought Eddie was transitioning to make Sears a REIT. Or an operator of data centers. Or some kind of reinsurance business. No direction whatsoever with Sears.
    14 Jan 2014, 11:05 AM Reply Like
  • Energysystems
    , contributor
    Comments (1405) | Send Message
     
    Eddie's "Idea of the day".
    14 Jan 2014, 11:17 AM Reply Like
  • rube123
    , contributor
    Comments (1731) | Send Message
     
    "KCD, etc. are non-guarantors. "
    say that 100 times real fast, and maybe you will believe it

     

    Sears-Re is KCD and 125 ghettos held as collateral for the revolving credit

     

    page 42
    http://1.usa.gov/KgZPfD

     

    the other year when the banks pulled the plug on the credit, which in turn cause ESL to "have" to take some receivable puts was very real.
    funny thing, that happened right after WEX stopped the credit

     

    here is a question, the 125 ghettos, are they counted on both sides of all these wonderful evaluations
    they are 125 stores that are owned by Sears-re , so they should be reported as stores owned
    they are also 125 stores leased to Sears, so they should be reported as 125 leases also
    I doubt any body knows, considering nobody knows which ghettos they are
    14 Jan 2014, 12:02 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4623) | Send Message
     
    LOL, yeah ok.
    14 Jan 2014, 12:31 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1718) | Send Message
     
    rube, I couldn't find where it said Sears Re/KCD/125 "ghetto's" were the collateral for the revolving credit. Is it on page 42? I don't see it..

     

    However, if what you are saying is correct, then that means if they don't tap into the revolving credit, then Sears Re/KCD/125 "ghettos" are not on the hook.

     

    Correct? Are they tapped into the revolving credit line right now?
    14 Jan 2014, 01:00 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4623) | Send Message
     
    I heard the rent paid by Sears' retail to the properties owned by Sears' real estate entity is extremely high.
    14 Jan 2014, 12:35 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1718) | Send Message
     
    And where did you "hear" that?
    14 Jan 2014, 12:59 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4623) | Send Message
     
    A little bird.

     

    Lahiem
    14 Jan 2014, 06:28 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9718) | Send Message
     
    Companies that lose the ability to generate free cash from sales go into corporate hospice.
    14 Jan 2014, 02:58 PM Reply Like
  • IDK Much
    , contributor
    Comments (171) | Send Message
     
    Crazy as it is, this company with its real estate should be worth alot more than it is. However, it just seems things don't really move forward with Sears. You can triple your money here or lose all of it. Its just a gamble.
    14 Jan 2014, 02:58 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1718) | Send Message
     
    Real estate isn't worth as much if you can't

     

    A) sell it
    B) earn a return on it (lease, rent, etc.)
    14 Jan 2014, 03:04 PM Reply Like
  • Bouchart
    , contributor
    Comments (803) | Send Message
     
    If Sears's real estate is so valuable, how come Sears can't make any money selling its products in that real estate?
    14 Jan 2014, 03:27 PM Reply Like
  • Yueping Guo
    , contributor
    Comments (46) | Send Message
     
    The past few years have seen a lot financial engineering in SHLD, but not much real progress in fixing the retail business. If the financial engineering works, the players make a lot of money. If it doesn't, the company goes under.

     

    We see which direction SHLD is going now.
    14 Jan 2014, 03:48 PM Reply Like
  • PortaFi
    , contributor
    Comments (11) | Send Message
     
    Sears must focus on e-commerce strategy. Digital Franchise is the best option for SEARS. Please have a look at presentation: http://slidesha.re/1gy...
    14 Jan 2014, 09:53 PM Reply Like
  • Sears Parts Guy
    , contributor
    Comments (2) | Send Message
     
    To be honest this company should be put out of business for what it did to make those terrible reports look as good as they did. I left the company over it and I really believe their decisions at the end of last quarter are going to mark the begining of the end.
    15 Jan 2014, 06:41 AM Reply Like
  • Sears Parts Guy
    , contributor
    Comments (2) | Send Message
     
    Sears did everything it could to make the numbers what they were. I left the company or one of those particular issues and I think after what they did they no longer have any hope of reversing the trend.
    15 Jan 2014, 06:45 AM Reply Like
  • willi44
    , contributor
    Comment (1) | Send Message
     
    Watch Eddie go bankrupt in the future to avoid the pension costs (which he has underfunded for 5 years). What a snake.
    16 Jan 2014, 03:39 PM Reply Like
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