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Mall-based retailers and department stores are holding up relatively well in early trading after...

Mall-based retailers and department stores are holding up relatively well in early trading after the effect of Hurricane Sandy was lined up as a major Q4 headwind. The trick now is to figure out which retail firms can recover lost sales. Two notables exceptions to the subdued trading pattern - J.C. Penney (JCP -4.8%) and Sears (SHLD -6.5%) - had a slightly higher percentage of stores in the path of Hurricane Sandy than the average in the sector.
Comments (12)
  • Micah
    , contributor
    Comments (476) | Send Message
     
    On the Google Finance chart, $SHLD has a zero dollar dividend listed. Is this due to the spin-off of Sears Canada? That may have something to do with this large drop too.
    31 Oct 2012, 10:07 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4238) | Send Message
     
    Sears never paid a dividend. hense, now they won't receive as large a dividend paid by Sears Canada.
    3 Nov 2012, 01:11 AM Reply Like
  • Tack
    , contributor
    Comments (13267) | Send Message
     
    Sears is a large purveyor of mattresses and major home appliances. It's quite likely that Sandy's flooding will prove a boon to their business, not a detriment.
    31 Oct 2012, 10:10 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4238) | Send Message
     
    True, however, the holiday season revenue will be affected by the hurricane and store damage, closing days will also hurt the business.
    The rebuilding revenue will come into play late 2013 - if the numbers are bad this quarter we will see a massive sell off.
    3 Nov 2012, 10:32 AM Reply Like
  • Tack
    , contributor
    Comments (13267) | Send Message
     
    MSF:

     

    You honestly believe that revenues from flood repairs will ensue 12-15 months from now? They'll happen in the next quarter and first quarter of 2013 for much of the process.

     

    And, I'd like to add that the notion that the market is just looking for an excuse for a "massive" selloff is misplaced. If that were so, the storm itself would have served as a catalyst for panic. The market is and will continue to be buttressed on the downside by the massive amounts of liquidity that reside in cash and other "safe" assets, but which is translating into buying on market dips. Yes, we could have the usual corrections, but anything "massive' appears most unlikely.
    3 Nov 2012, 12:09 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4238) | Send Message
     
    You wait and see if the numbers are bad with Sears - Sears stock will be sold and there will be a massive sell off on Sears stock - the rest of the market does not care about Sears Holdings.

     

    3 Nov 2012, 10:28 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4238) | Send Message
     
    Again, I am talking only about Sears stock with the sell off and not the entire market.
    Let's not forget the massive short and put positions on the stock too.

     

    Good luck.
    3 Nov 2012, 10:28 PM Reply Like
  • RobbyRob
    , contributor
    Comments (359) | Send Message
     
    What is keeping this stock afloat? Up over 10% in two weeks...even before the storm came.
    5 Nov 2012, 11:33 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4238) | Send Message
     
    It's the Eddie Lampert premium. He is the largest shareholder and he is known to be as good as Warren Buffett.
    Sears Holdings will be the next Berkshire Hathaway.
    6 Nov 2012, 04:33 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4238) | Send Message
     
    Although Lampert's strategy is being executed perfectly in will be in the first quarter of 2014 before you see the results and if the business plan is working.
    7 Nov 2012, 06:46 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4238) | Send Message
     
    The problem with waiting is it will shoot up so fast because of the short covering and investors wanting the stock on any hint of good news.
    8 Nov 2012, 04:47 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4238) | Send Message
     
    Buy Microsoft they are going to have their own smart phone. The stock will sky rocket up tomorrow.
    4 Nov 2012, 09:24 PM Reply Like
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