TACM

Numbers Check on Sears Holdings - It's Cheap

Nice analysis and discussion of different ways to look at the operation. Clearly, it isn't a simple retail play and is hard to value, but the analysis is well thought out and you make it clear that there are many variables and scenarios that are difficult to predict.

My local Sears and KMart (DC subs) are always full. One (Kmart,Springfield, VA) is adjacent to a Trader Joes with high traffic flowing through the complex. Another (Kmart, Annandale) is a stand alone and overflows because it is the only retailer in the area. The local Sears is in a shoddy mall, but the store is very active. I was in the applianced section last weekend and it was very busy. I am sure that there are many solid locations and others that may eventually be closed. It's difficult to determine what will happen.

I certainly cannot value the company or predict the immediate future of retail, but Sears seems like a decent situation for a long term holder. Munger says you always need to compare the investment wil your opportunity value. Are there better investments???

For what it is worth, you are in good company with Fairholme, Pabrai, Soros, Price, etc. Keep up the posts.