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  • Gemalto Offers Growth With Security [View article]
    LOL. I am in the midst of writing a very long article about Gemalto and thought, "There's no way anyone is going to write an article about it before I do." Long GTOMY.
    Feb 26 05:57 PM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    This was in the comments section on a fund manager's blog.

    Whether it's true or not I have no idea.

    "To merge your RBS and Sears threads -- in 2006 RBS (via Greenwich Capital) offered to monetize over $1 billion of Sears stores assets as a "test case" at incredibly attractive rates via a CMBS transaction, only to be rebuffed by an ESL finance group which felt that those assets would only increase in value, while believing that continued robust store operations would ensure that Sears did not need cash in any event. The "spreadsheet math" would have become reality but for the hubris of ESL/Sears.

    The only thing worse than not creating value is actually having value handed to one who ultimately destroys it."

    Blog article from a hedge fund manager.

    If Sears would spin off into a REIT, that would be a positive (again, I think there's value here, just strongly disagree that there's well over $100 a share worth). However, whether or not they will who knows, and it isn't going to fix the underlying business.
    Feb 26 04:47 PM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    Curious that a number of other high ranking people in the company have sold in the last year.
    Feb 26 03:09 PM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    "Just because one operates a large fund, doesn't mean that one is immune from lapses."

    Really? Because those who speak of Berkowitz speak of him as if he is incapable of making a mistake. Einhorn was right regarding JOE.
    Feb 26 02:54 PM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    I don't mean to sound harsh above, but this has been compared to Berkshire a great deal and I'll stick to my view that this is no Berkshire and Lampert is no Buffett. I also think the situation with the textile company is way different.
    Feb 26 02:53 PM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    Thanks for the note. I wouldn't go near it, but best of luck to you. You may want to look at a Sears store if there's one in your area (if you've never set foot in one.) It may actually reinforce your thoughts on the company.
    Feb 26 02:45 PM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    Did the textile company have nearly 300,000 employees? Two very different situations - Sears is not going to be easy to liquidate if that's what the path is Lampert has chosen (and, despite his discussions of "turnaround"), it would appear that that's what his goal is.
    Feb 26 02:40 PM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    LOL. Very funny. I bash the company, not because I dislike the brand or anything - in fact, I think it's a classic brand. It was already becoming irrelevant when Lampert became involved, but he certainly made things worse rather than making any sort of attempt to turn it around.
    Feb 26 08:46 AM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    Lampert will never combine his hedge fund with SHLD.
    Feb 26 08:05 AM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    I don't think you're a basher of the stock. I just think that there are investment instances that don't make sense and can go on not making sense for a long time. I also don't think there's no value here, either, but nowhere near the value some think (and I think given the size of the company it's going to be a LOT harder to liquidate than anyone believes if that's the route they're going to take.) It's the bizarro world of Lampert doing what Lampert has done to the company over the last several years and then getting praise.

    I wouldn't go long or short, but good luck to you if you do go short.
    Feb 26 07:58 AM | Likes Like |Link to Comment
  • Goldman slashes its 2013 gold price target to $1,600 from $1,810 citing ... recent price declines. What wonderful value-added. Searching for a better reason to justify its fancy pay, the team notes a small increase in U.S. real interest rates as well as the perceived hawkish FOMC minutes (refuted by a half dozen Fed speakers over the past few days). GLD -0.3% premarket. [View news story]
    Do as they probably do, not as they say. Amusing that someone brought up Gartman above.
    Feb 26 07:43 AM | Likes Like |Link to Comment
  • Sears Is Headed Lower [View article]
    In terms of replies to the article above:

    "In my opinion, this is perhaps the most overbought and oversubscribed stock in the market and I see no recovery anytime soon."

    It is? Who's buying aside from Lampert and Berkowitz? The stock is down enormously; I don't know how it's overbought.

    "One of the biggest problems facing Sears in my opinion is the simple lack of need for the company to exist. "

    There's a lot of companies that probably don't need to exist. Sears is just a particularly large and obvious example. It's dated, it's losing money and it's retail in a world where retail is overbuilt. However, that doesn't mean that it's going to zero or that there's NO value. However, you have people who believe that there's oodles of value in the company and are willing to throw good money after bad. Step aside, and let them do that all they please.

    "There was a time, probably before I was born, when everybody might have shopped at Sears."

    Dude, HOW OLD are you? I'm not that that old AT ALL and I remember a time when everyone shopped at Sears and K-Mart.

    " As stated before, I disagree with the company's decision to acquire K-Mart and believe it only added to the company's declining fundamentals."

    Was ages ago re: K-Mart - look at the history of Sears Holdings. Again, it doesn't matter when you have two people willing to continually prop the stock to realize their thesis.

    "While I maintain he will ultimately do what's best for his shareholders"


    "Just the overall look and feel of a Sears or K-Mart store screams ancient. "

    Lampert doesn't care, nor does Berkowitz.

    "Some recent technical indicators support that this level could be a good entry point."

    And then Eddie will come in and buy more shares to ramp the stock. He's already taken the public float down to the point where I believe the stock has been dropped from the S & P 500.

    "I think it may be too late for the company's new CEO, Edward Lampert, to have any material effect on turning the tide"

    But look what good he's done for the company in the last several years. lol.


    Here's the thing: I completely agree with your thesis that Sears has essentially become irrelevant and that it's amazing that it's still even around. But you have a couple of fund managers who believe they can extract value - one of whom has headed the company for the last several (and terrible) years.
    Feb 26 07:29 AM | 1 Like Like |Link to Comment
  • Sears Is Headed Lower [View article]
    You're going to have followers from the church of Berkowitz talk about how Sears is a real estate play. That may be true, but I don't think it's worth nearly as much as Berkowitz and Lampert think it is, nor do I think it'll be nearly as easy to liquidate the company's assets as they act like it is. (Nor do I think the inventory is worth as much as they think, either - if it ain't selling at Sears, how much is it really worth?)

    Lampert may have a terrific track record as a fund manager, but he's really ruined what was left of Sears during his time there. Oh, but now Berkowitz acts like Lampert's a freaking genius after nearly ruining the company so now they can try to sell retail real estate in a country where retail is overbuilt and the average consumer is still not in great shape.

    It's a terrible company, it keeps losing money, but I wouldn't short it - Lampert and Berkowitz will keep trying to prop it up. The time to short (and the time Berkowitz should have GTFO) was when it was over $100. Sears being over $100 was a sure thing and Berkowitz should have taken profits rather than continuing to wait - with the stock now down more than half from a couple of years ago - for what's not a sure thing (realizing the value of the company's assets) and what will take more time than what I think either of them thought it would and will be FAR more difficult (if even possible) than I think either of them act like it is going to be.

    As for how Sears stores look? Berkowitz said in an interview that Lampert is "doing just enough" not to break leases.

    I definitely would not short Sears or go long Sears - just leave it be. It's an instance in this bizarro world of an awful (although it's sad that it's gotten this awful - certainly a classic American brand) company that's muddling along thanks to a couple of fund managers who believe that they have tremendous, tremendous value in the assets of a company one of them has nearly ruined - and they're willing to keep throwing money at it in attempt to realize their thesis.

    Lampert is now CEO (so now maybe he'll show up on conference calls? If I remember correctly, he doesn't always do that) and now he will have more focus and responsibility. It's great to have him as CEO - a CEO who has nearly ruined the company - rather than a CEO who had no retail experience whatsoever before him.

    Ackman is another one who believes that he can extract value from retail - he hasn't been successful with Target or JC Penny, but I suppose at least he appears to have ideas beyond "do just enough to the stores to not break the leases".
    Feb 26 06:57 AM | Likes Like |Link to Comment
  • Samsung's Galaxy S IV will support NFC payments for Visa (V) credit and debit accounts, courtesy of Visa's PayWave app. The tie-up is part of a broader partnership the companies estimate will cover 100M NFC-enabled Samsung devices over the next 12 months. Separately, MasterCard (MA) is unveiling MasterPass, a multi-card mobile payments platform that supports both NFC and other contactless technologies. NFC chip leader NXP (NXPI +1%) might be receiving a slight boost from the news. [View news story]
    See also Gemalto (GTOMY.PK) for a play on NFC.
    Feb 25 02:51 PM | Likes Like |Link to Comment
  • Sleep Well At Night With This Dividend Aristocrat You Can Buy Right Now [View article]
    Any issues (aside from the market) that caused HCP to drop that fast in 2008? While it rebounded quite well and could do well for a long-time, I would think this would have been somewhat more defensive in 2008 than it was.
    Feb 25 08:22 AM | 1 Like Like |Link to Comment