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jasonrothman1

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  • Sears Holdings (SHLD) moves up 3.1% premarket after shares dipped below the $40 mark for the first time since January. Hedgeye's Keith McCullough thinks high short interest names such as Sears are scaring hedge funds in the current atmosphere. If that's the case, a short squeeze rally into year end could be on tap. [View news story]
    Even Buffett admitted he was wrong in investing in Berkshire Hathaway, not just other investors, but he still got rich from it anyway as he admits in this video.

    http://bit.ly/TS7O49

    Maybe Lampert could learn something from his "idol," but I admit it does sound like he's taking the same path to his riches. It's funny how myths are started, but, regardless of how, they both make money from these endeavors.
    Dec 11 12:57 AM | Likes Like |Link to Comment
  • Sears Holdings (SHLD) moves up 3.1% premarket after shares dipped below the $40 mark for the first time since January. Hedgeye's Keith McCullough thinks high short interest names such as Sears are scaring hedge funds in the current atmosphere. If that's the case, a short squeeze rally into year end could be on tap. [View news story]
    "This may be beginning of the biggest squeeze in history - there are too many things falling into place."

    What?

    "1 -Eddie Lampert is the largest and majority shareholder"

    Ever hear of Poker, where some players try to bluff their opponents into thinking they have a great hand when it’s only mediocre or nothing at all? He’s invested a lot into this hand and he’s not about to give it up yet, so he’ll stay in and keep throwing money into the pot while the other players do as well hoping they’ll fold and not call his bluff and then he’ll steal or "buy the pot” for himself.

    "2 -Break up value at $160.00"

    Everyone on Lambert's side feel there’s a lot of value in the real estate, but I would estimate at least half of that is true, if not much less. Break up value may make some investors money but mostly Lampert whose stake averages about $16 a share, and that’s why he’s in this for the long haul. I suppose if you want to be part of one of the most strategic break ups of a company in history there’s definitely money to be made. I just feel sad a company is worth more dead than alive, and who wouldn’t want to shoot an “outlaw” in the back to claim the reward, rather than bring him in alive? It’s just that these people aren’t “outlaws”, they are over 250,000 hard working people expecting to have a place to work in the future.

    "3 -Business plans and strategies working"

    If you call 26 quarters of decline and going into the 4th quarter holidays with same store sales down at both Sears and Kmart as “business plans and strategies working” then I can honestly say why America went into recession with that kind of thinking. If you’ve been in some of the stores lately they’re so desperate to get sales they’ve put so much on sell so close to cost just to get people to buy anything, even categories that you wouldn’t normal associate with Christmas items such as jock straps in Sporting Goods etc. LOL Sales up, but profits down is not a winning combination, if that's the plan to save the company. Of course it may make the stock go up for awhile. As far as Sears Holdings as an investment vehicle, I haven’t seen too many winners yet.

    "4 -Comps getting better"

    I admit it’s good to be optimistic, but have you ever heard the saying, “ been down so long, it looks like up to me”?

    "5 -The largest amount of stock purchases by funds last quarter."

    Not sure where you got this one, but you shouldn’t count Lambert's ESL or Berkowitz’s Fairholme as they are the only key players, and, in my opinion, working together on this one.

    "6 -Short interest down almost half but not enough shares to cover."

    Lambert's running the show, what did you expect? Even if things don't go exactly as he planned, he'll still have $billions to go home to at his $40 million estate off the coast of Florida he recently purchased.
    Dec 8 03:08 PM | 1 Like Like |Link to Comment
  • We Worry Sears Will Sell Winners To Pay For Losers [View article]
    Sorry, I didn't mean his sole intention was to let the "retail side" go under, but I don't believe he was about to put a lot of money into saving it either, if there was more money to made liquidating down the road. When there's more value to made from the real estate over the humans who work there, the real estate will always win. There's still a possibility he may take the company private, as well.
    Dec 3 07:06 PM | Likes Like |Link to Comment
  • We Worry Sears Will Sell Winners To Pay For Losers [View article]
    Kmart came out of their bankruptcy just fine without Lampert. He just bought up the new shares of stock while they were still dirt cheap and took control of the company. He just seen the value of the under valued real estate Kmart had at the time and used it to merge Sears in a $11.5 billion buy out.
    Dec 3 06:59 PM | 1 Like Like |Link to Comment
  • We Worry Sears Will Sell Winners To Pay For Losers [View article]
    Kmart did indeed buy Sears after they came out of bankruptcy, actually doing quite well on their own, but Lampert wanted to merge the two real estate portfolios to have more liquidity value, in my opinion. If all else fails, he could liquidate, liquidate, and liquidate to his heart's content.

    See article below that clearly states Kmart bought Sears.

    http://nbcnews.to/z0MlHy

    After all, you've said it yourself time and time again, it's all about the real estate, not the survival of the retail side. That's what Lampert is an expert in, not running a retail company.
    Dec 3 06:54 PM | 1 Like Like |Link to Comment
  • We Worry Sears Will Sell Winners To Pay For Losers [View article]
    Actually, he used Kmart as a vehicle to get the money (by selling off valuable Kmart property and stores that were doing well by the way) to buy Sears and changed the name to Sears Holdings. Many people think it was Sears that bought Kmart but it was the other way around. Amazing isn't it that a company that just came out of bankruptcy has the money to buy another corporation? I wonder how that was manipulated? I guess the bankruptcy courts didn't know everything that was going on after all. So far he hasn't put much, if any, money back into Kmart stores or their employees to help them survive. Many lost their 401k accounts during the bankruptcy and never were compensated for it. I know plenty of long term employees at both Kmart and Sears who say the same.

    After the bankruptcy Kmart was doing much better than Sears as far as sales but because he didn't reinvest in Kmart and concentrated only on Sears they are going under again and sales are terrible. I don't think he had much intention of saving the Kmart aspect of the business. It was a "sink or swim" position on his part even though the Kmart situation got him where he is - "corporate raider" style. I don't believe Kmart would have gone into bankruptcy in the first place if they hadn't had people running the show in the same fashion Eddie does (which is to say only for himself and his investment firm), he's just better at it and knows how to sustain it longer at his benefit and not for the people working there because he's good at the stock market side of the equation.

    Not to say that some people will make some pretty good money from all this if he succeeds, but they are in the minority compared to the hundreds of thousands of employees still suffering because of all these "games" the corporate CEOs and Eddie have played over the past few decades. There's no reason for Walmart to have come along and squashed Kmart/Sears if these so called "leaders" weren't in it just for themselves.
    Dec 2 01:17 PM | 1 Like Like |Link to Comment
  • We Worry Sears Will Sell Winners To Pay For Losers [View article]
    It's sad that the only real important thing here is the "liquidation value" of this company. It just shows that Lampert has no intention of trying to save the retail part of the company (or the human factor). He'll allow the stores to degrade and lose sales, watch the stock go down because of it, buy up the stock while it's low, then sale off assets (real estate and close stores), make it appear like there's going to be a "turnaround," thus causing the stock to go up again, all the while he's laughing all the way to the bank. Unfortunately, there are people working there who wish he would be more interested in investing in them and saving the retail end, instead of just looking at the value of the real estate. My opinion, but there's got to be a better way to make a buck instead of stepping on the backs of the American worker to get it. It's one of the reasons the middle class is diminishing and the economy is so volatile.
    Dec 1 01:45 AM | 3 Likes Like |Link to Comment
  • Sears Reports Thanksgiving, Black Friday Trends And Insights [View article]
    Doubtful, Lampert is probably still considering dumping Lands End and most likely even Kmart at this point just so he can keep Sears afloat, not that Sears is doing much better, but at least there's more room for developing something out of Sears stores vs. Kmart stores. I haven't heard anything about Autozone buying into the Sears Auto Outlets (Eddie doesn't have as much pull over there), but I doubt they want to get into the actual full service auto repair end of things especially since Sears has closed or cut back services in some shops and not opening more. I'm sure Diehard batteries will eventually end up in other stores including Autozone. Of course you can still hope that Lampert will make Sears Holdings into a viable investment vehicle.
    Nov 29 06:44 PM | Likes Like |Link to Comment
  • Shares of Sears Holdings (SHLD -13.4%) fall hard after the retailer's Q3 report doesn't give forward-looking investors much to latch onto. Author Lawrence McDonald's take on Sears summarizes the general vibe of traders: "Thank god for that real estate. That makes 23 straight quarters of negative sales growth at Sears Holdings." [View news story]
    I'm sure he will, it's the only way he'll get more fools to jump on "his" bandwagon to keep the stock afloat, and what I mean by "his" is that he'll make most of the money in the long run. After all, he has the cash flow to keep playing "the game."

    I'm seriously doubting he'll make this company into another Berkshire Hathaway, it's a different time and environment, and I don't see many of those Sears and Kmart locations being of much value for retail or anything else. I hope I don't eat my words, but unless you have some serious money to stay in this with him, I don't see making a lot of money from it long term, but don't get me wrong, there is money to be made here, and that's what it's all about after all.
    Nov 16 07:24 PM | Likes Like |Link to Comment
  • Retail watchers keep a close eye on Target (TGT +0.6%) to see if the retailer matches the plans of Wal-Mart (WMT -0.2%) and Sears (SHLD +1.8%) to open up for Black Friday shopping on Thanksgiving evening. Last year, the company drew a fair amount of internal and external criticism for opening doors at midnight, but with Macy's, Kohl's, and Best Buy all choosing the midnight slot this year the pressure is on to keep an edge with another early start. [View news story]
    Well he better start doing something soon. All the employees I know from Sears and Kmart have worked there long before Lampert merged the two companies in 2004 and the haven't seen much change except for layoffs, hours cut, and no raises for years. If that's what he thinks will produce "loyalty and hard work" from his employees, then he is sadly mistaken. Just read this articles from earlier this year, even his top execs are feeling the strain.

    http://bit.ly/TCNsde

    http://bit.ly/UBU3n2

    I will admit that the ads for Sears are finally getting better, but not so much for Kmart. Ron Boire seems to be helping with some better ideas than Lou has, but it's more of "micro-managing" of the stores than letting some of these stores have the power to tailor to their local customer base. Hopefully it's not too late to get sales up, but if he continues to forget about his workers, it'll be a losing battle in the end.
    Nov 11 01:23 PM | Likes Like |Link to Comment
  • Retail watchers keep a close eye on Target (TGT +0.6%) to see if the retailer matches the plans of Wal-Mart (WMT -0.2%) and Sears (SHLD +1.8%) to open up for Black Friday shopping on Thanksgiving evening. Last year, the company drew a fair amount of internal and external criticism for opening doors at midnight, but with Macy's, Kohl's, and Best Buy all choosing the midnight slot this year the pressure is on to keep an edge with another early start. [View news story]
    The most they'll get is an extra 4 hours of pay, and that's if they get a full 8 hour shift at time and a half, which is almost non-existent now at Kmart and Sears, even during the holidays. Used to be workers could look forward to extra hours during the holidays, but not anymore. The way Sears does work schedules now is they figure in those extra hours or holiday pay and maintain the workers' usual amount of weekly hours so that workers don't get much if any extra pay but still have to work terrible shifts. All the workers I know would rather have Thanksgiving day or Christmas eve off, especially since it doesn't translate into much if any extra in their pay check, but they are not given the choice.

    It's my opinion that these corporations could make more sales and profit if they would stop treating their employees like a number so they would feel better about helping customers that come in to buy their merchandise.
    Nov 10 12:43 PM | Likes Like |Link to Comment
  • Retail watchers keep a close eye on Target (TGT +0.6%) to see if the retailer matches the plans of Wal-Mart (WMT -0.2%) and Sears (SHLD +1.8%) to open up for Black Friday shopping on Thanksgiving evening. Last year, the company drew a fair amount of internal and external criticism for opening doors at midnight, but with Macy's, Kohl's, and Best Buy all choosing the midnight slot this year the pressure is on to keep an edge with another early start. [View news story]
    Actually Kmart has always been open on Thanksgiving day. The only thing different this year is instead of closing at 9pm they will close at 4pm and reopen at 8pm for the next series of "Black Friday" ads. I know some people that work for Kmart, and they feel stressed out because many are being asked to work split shifts with nothing but part-time workers that were just recently hired.
    Nov 9 06:00 PM | Likes Like |Link to Comment
  • Sears Holdings (SHLD +1.6%) is the latest retailer to slash layaway fees and add delivery options as it looks to stay competitive during the holiday season. One new option for customers is the ability to place items on layaway from store kiosks for later delivery to their houses. [View news story]
    Don't worry about getting that link, here's one:

    http://prn.to/RO1iu0

    Mostly just PR smoke and rhetoric not specifically applicable to Sears just retail in general "according to a forecast from research firm ShopperTrak." I've seen figures that show some retailers are up in sales but not Sears.

    Let me give you some statistics I was given from people I know who work at Sears/Kmart. In a district containing approximately 24 Sears & Kmart stores combined:

    1. There's a requirement that cashiers to sign up at least 20% of non ShopYourWayReward customers that come through their lines (or they might get their hours cut). I was told most stores are only averaging about 4%.

    2. Stores are going into the holiday 4th quarter season being down in sales an average of 8% for the year.

    3. Most of these stores haven't received those tablets yet, and say they really don't have enough salespeople on the floor to be able to facilitate the full use of them for customers anyway.

    Of course, I can't substantiate this, since this information was given to me informally, but, if it is, I believe they need to depend less on their "new strategies and technology" and get back to basics and good old customer service in their stores... unless Eddie Lampert really does have other plans for the company.


    Oct 9 08:43 PM | Likes Like |Link to Comment
  • Sears Holdings (SHLD +1.6%) is the latest retailer to slash layaway fees and add delivery options as it looks to stay competitive during the holiday season. One new option for customers is the ability to place items on layaway from store kiosks for later delivery to their houses. [View news story]
    Here's a great website to start with to find out who made your Kenmore appliance:

    http://bit.ly/PmhmVA
    Oct 9 06:33 PM | Likes Like |Link to Comment
  • Sears Holdings (SHLD +1.6%) is the latest retailer to slash layaway fees and add delivery options as it looks to stay competitive during the holiday season. One new option for customers is the ability to place items on layaway from store kiosks for later delivery to their houses. [View news story]
    MSF could you provide a link to that announcement? I'd like to read the details they state. I just hope they're not being like "politicians" in there statements just because the presidential election is around the corner...LOL
    Oct 9 06:28 PM | Likes Like |Link to Comment
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