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Sears Holdings (SHLD) discloses in a SEC filing (8-K) that it will contribute an extra $203M to...

Sears Holdings (SHLD) discloses in a SEC filing (8-K) that it will contribute an extra $203M to its U.S. pension plan in order to offer lump-sum settlements to workers. The company's gross pension obligations totaled $6.1B at the end of its last fiscal year.
Comments (21)
  • MrsLinarcos
    , contributor
    Comments (53) | Send Message
     
    Sounds like Eddie is about to let go more workers that he considers a hazard to his bottom line, his pocket book. He knows how to put a spin on things doesn't he? I don't think for one minute those who are going to get bought out aren't aware of what he's doing; because it's not for their best interests but his and it's still greed.
    14 Sep 2012, 07:31 AM Reply Like
  • Micah
    , contributor
    Comments (462) | Send Message
     
    Sears would have died 4 years ago were it not for Eddie.
    14 Sep 2012, 09:37 AM Reply Like
  • jasonrothman1
    , contributor
    Comments (124) | Send Message
     
    You don't know that. He's done well with the stock and keeping it alive, but the way the actual company has been run, it doesn't appear he really wants the "retail brick and mortar" part of the company to survive. Just look at the stats of the stores. I'm not saying he's not making money for himself and his investors (some of us included), but there's an "end game" that, and I'll admit I'm not sure what that is (but I have some ideas), probably won't benefit many of the people working in his Kmart and Sears stores.

     

    It's possible that if he hadn't tried to save both companies, one may have flourished, but from what I see of what is going on in the stores, they both may well go under. I'm not necessarily agreeing or disagreeing with you, but only time will tell.
    14 Sep 2012, 07:59 PM Reply Like
  • jasonrothman1
    , contributor
    Comments (124) | Send Message
     
    Agreed, he's no "Edward Lewis" (name and initials coincidence?) the "corporate raider" from the movie Pretty Woman who decided that making more money in the short run, wasn't worth the destruction of the workers' lives of the company he was taking over in the movie (Eddie doesn't have a prostitute like Julia Roberts to change him LOL!) Unlike Morse's corporation from the movie, I doubt they'll be a happy ending for the people who work at the Sears Corporation.
    14 Sep 2012, 08:18 PM Reply Like
  • plnnpret
    , contributor
    Comments (3) | Send Message
     
    Sounds like the SHLD employees who work in the SHOS division are going to get what they probably hoped for, and that is a buyout of their pension when they are offered jobs in SHOS.
    14 Sep 2012, 09:45 AM Reply Like
  • jasonrothman1
    , contributor
    Comments (124) | Send Message
     
    Doubtful, buyout yes, but they'll probably be offered minimum wage if they want to stay with SHOS. After all, new company, new job, from the view point of the personnel dept. LOL.
    14 Sep 2012, 08:25 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8145) | Send Message
     
    SHLD shorts lose again!
    14 Sep 2012, 04:16 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4016) | Send Message
     
    It appears the bears are getting scared the PUT/CALL ratio was over 2.00 now it is down to 1.30 and getting lower.

     

    This is a good sign and the next resistance according to the charts is $73.50.

     

    Sears stock is creeping up slowly.and could hit $100.00 easily.
    14 Sep 2012, 05:17 PM Reply Like
  • Oldtireman
    , contributor
    Comments (24) | Send Message
     
    Did someone say "buyout"? Where does the line start, where do I sign???? If you think service in the stores in bad now, wait until they purge more of the Old Guard, especially the old "Full Time-40's, those of us the company is obligated to give 40 hours to every week. Does anyone on the outside realize that full time hours at Sears Holdings are now 32 hours??? No one hired these days gets a 40 hours unless business demands 'might' get you more but 32 is considered full time. Instead of pension funding, what would be really nice if they resumed the company match to the 401k plans that was suspended when the recession hit. Everyone seems to have forgotten the company match was part of the "enhancements" touted when the pension program was axed shortly after the merger. Yet, how many millions of shares of stock have been bought back in the meantime? And folks wonder why the service is poor! All you value lovers better hope there's some value left after Eddie is done slicing up the carcass that is/was SHLD and tucking the choicer tidbits into ESL Investments. I suspect what will be left might resemble what is left of the family turkey on the day after Thanksgiving.,
    14 Sep 2012, 11:06 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4016) | Send Message
     
    Again, Eddie Lamper and ESL owns common stock too.
    If he hurts the shareholders he will be hurting himself too.
    15 Sep 2012, 09:46 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4016) | Send Message
     
    Just like that insurance fund where all the brands are that you said he owns for ESL.

     

    How do these people make this stuff up-----it's scary.
    16 Sep 2012, 04:04 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4016) | Send Message
     
    This is a baby Berkshire $10000 will be worth millions in ten years.
    16 Sep 2012, 04:04 AM Reply Like
  • Oldtireman
    , contributor
    Comments (24) | Send Message
     
    You still don't get it. You want another Berkshire, buy ESL. I have no doubt Eddie is going to make a ton of money for himself and his investors. But, from what I see inside on how the stores are being managed, stick with SHLD and you will be sucking on bones at the end, wondering where the hell all the meat and fat went!
    16 Sep 2012, 10:50 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4016) | Send Message
     
    I want to buy more shares but the stock price is not going down it is going up.

     

    Only $40 more dollars and it will be at $100.00. Considering it makes $3 - $5 moves it will be there before this year.
    16 Sep 2012, 04:07 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4016) | Send Message
     
    I will admit there is a fly in the ointment, Eddie bought shares from ESL which sold shares, now, you know he had to pitch to his clients not to sell now that there freeze time is up but they did anyway.

     

    If he bought shares in the open float and not ESL it would of looked and been a lot better - he has done this also on his last purchase too.

     

    It looks like he is putting band aids when he purchases like this.

     

    Also, Auto Zone no longer supplies Sears Auto for their parts, I was there servicing my car and the GM told me they stopped because they never had sufficient parts in stock.

     

    I'm long but it is what it is.
    16 Sep 2012, 04:07 AM Reply Like
  • Oldtireman
    , contributor
    Comments (24) | Send Message
     
    Well, you're dead wrong on this one! The reason I know is I WORK THERE! Auto Zone never was a direct supplier of parts to the auto centers thru normal replenishment centers. However, should needed parts not be in stock for a particular repair, the service writer is free to check with any local parts house including Auto Zone, Advance Auto, NAPA and Carquest along with various other smaller parts shops that particular auto center may have relationships with for specialized parts and services the auto center may sub-contract rather than try to deal with in-house. If your Sears AC no longer deals with Auto Zone for whatever reason, it's strictly a local issue and not a national directive. If anything, Auto Zone is still a "first call" because the AC gets a percentage rebate at the end of the month based on dollar volume of parts ordered. Same as when the company had a big stake in Advance Auto, they were a "first call". One hand still washes the other, especially at SHLD.
    16 Sep 2012, 10:43 PM Reply Like
  • Micah
    , contributor
    Comments (462) | Send Message
     
    The fact that a $203m payment only represents 3% of the total pension obligation shows how big on an anchor this liability is and will be.
    16 Sep 2012, 08:16 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4016) | Send Message
     
    That is why we may see a massive sell off.
    16 Sep 2012, 10:14 PM Reply Like
  • rube123
    , contributor
    Comments (787) | Send Message
     
    which is it, going to a 100, or massive sell off, and is 3% correct
    17 Sep 2012, 07:46 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4016) | Send Message
     
    If the earnings get better and it is because of CONSISTENT cash flow from the businesses and not from the selling of assets only the stock will blow by $100.00.

     

    I would say the third quarter of 2013 will be the clincher.
    17 Sep 2012, 09:14 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4016) | Send Message
     
    The catch 22 is any hint of this happening will trigger massive buying and the stock may be well over $100 by third quarter of 2013.
    17 Sep 2012, 02:31 PM Reply Like
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