Lark Williams

Sears Faces Risk If Economy Doesn't Improve

Mr. Rong needs to better back up his assertions but he's directionally accurate. SHLD has negative free cash flow from operating activities, which is the best measure of the health of the enterprise. <$517MM> reported for 13 weeks. Mind you stores of course do their best Q4 but nonetheless this is a lousy number to post, and we're in the teeth of a tough retail environment. The strong get stronger and the weak get weaker in the shakeouts.

Walk into a Sears. Awful -- the stores look like a third world retailer. Their best hope is to license their brands like Craftsman, Die Hard etc. As a retail operator, they are only going down.

For latest cash flow statement see yahoo.brand.edgar-onli...