bryanz

Sears Holdings: Don't Sell Land's End - Expand It

Just curious as to your thoughts on two things:

1) You say Lampert is ready to go shopping. What about Gap? They've been struggling lately, there's strong "brand appeal" there. He could leave Gap and Banana Republic as stand alone stores then incorporate the Old Navy brand into the fold similar to the way Land's End has been taken in. That would allow for the closing of sagging Old Navy stores which would in turn cut costs, or the Old Navy stores could be converted into Sear Essentials-type stores depending on their size.

2) Buffett has said that he's looking to go shopping. He's also stated that he's looking for a successor to take over BRK. What better way to kill two birds with one stone than to buy SHLD? Buffett is comfortable with retail purchases (Wal-Mart and Target are/have been holdings), and Lampert has already been pegged as "most likely to succeed in the Warren Buffett way." With a current market cap just south of $30B, and assuming a 30% premium, that puts SHLD right in that $40B that's burning a hole in his pocket. Buffett could sit back and let Lampert manage SHLD while prepping him for the eventual succession to BRK. I know there's no indication that Buffett will even buy a US company, but it just seems like it makes sense. Lampert has created long term value in SHLD, something that Buffett values. P/E may be a little lofty but it's right in line with WMT of which he's a percentage stakeholder.