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(99 Percent) Profit Plunge Slams Sears
The Street.com ^ | November 29, 2007 | Nat Worden

Posted on 11/29/2007 11:24:18 AM PST by Zakeet

Shares of Sears Holdings dropped below the $100 mark on Thursday for the first time in their two-and-a-half year existence after the company reported disastrous third-quarter results that suggest its days as a retailer could be numbered.

Fans of the company's chairman, Greenwich, Conn., hedge fund manager Ed Lampert, say that Sears may be a dying retailer, but it's cash can be invested elsewhere by a value-investing genius. Others say the path to riches at Sears lies in the hidden value of its real estate, which guarantees upside in the stock -- even in the event of a liquidation.

With shares of Sears down nearly 50% from their April all-time highs, such convictions are looking increasingly precarious as the U.S. housing bust threatens to plunge the economy into a recession. The company's cash flow is dwindling as its profitability sinks, and real estate values are mired in a cloud of uncertainty.

(Excerpt) Read more at thestreet.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: economy; retail; sears
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Too bad. Time was when they were an outstanding company.

1 posted on 11/29/2007 11:24:19 AM PST by Zakeet
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To: Zakeet

What the heck is a “Sears”?


2 posted on 11/29/2007 11:26:25 AM PST by Question Liberal Authority (Al Gore and Osama Bin Laden have the same position on global warming, for the exact same reason.)
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To: Zakeet; newgeezer
Ha ha.

Sears sucks.

3 posted on 11/29/2007 11:26:28 AM PST by DungeonMaster (WELL I SPEAK LOUD, AND I CARRY A BIGGER STICK, AND I USE IT TOO!)
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To: Zakeet

Solid as Sears?............not any more........


4 posted on 11/29/2007 11:26:34 AM PST by Red Badger ( We don't have science, but we do have consensus.......)
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To: Question Liberal Authority

Sears what you say when you counts.:

Sears 1, sears 2, sears 3 mo.........


5 posted on 11/29/2007 11:27:34 AM PST by Red Badger ( We don't have science, but we do have consensus.......)
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To: Question Liberal Authority
Sears is an anachronism.
6 posted on 11/29/2007 11:27:53 AM PST by trumandogz (Hunter Thompson 2008)
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To: Zakeet
Others say the path to riches at Sears lies in the hidden value of its real estate, which guarantees upside in the stock -- even in the event of a liquidation.

Think Vornado, Curtiss Wright corp.

7 posted on 11/29/2007 11:30:47 AM PST by rocksblues (Just enforce the law!)
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To: Zakeet

Do they own LL BEAN?


8 posted on 11/29/2007 11:32:42 AM PST by Ann Archy (Abortion: The Human Sacrifice to the god of Convenience.)
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To: Zakeet

Another icon of my youth about to bite the dust!


9 posted on 11/29/2007 11:32:59 AM PST by ConorMacNessa (HM/2 USN, 3rd Bn. 5th Marines, RVN 1969. St. Michael the Archangel defend us in battle!)
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To: Zakeet

I guess merging with that retail icon “Kmart” wasn’t such a good idea.


10 posted on 11/29/2007 11:33:19 AM PST by NY.SS-Bar9 (DR #1692)
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To: Zakeet

Sears is a great company.
Sears supports our troops. We support Sears!


11 posted on 11/29/2007 11:33:49 AM PST by griswold3 (Al queda is guilty of hirabah (war against society) Penalty is death.)
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To: Zakeet
Anyone who trusts this management after it told the original Kmart stockholder their stock was toilet paper and they could buy new Kmart stock, is silly.
12 posted on 11/29/2007 11:35:37 AM PST by Mark was here (Hard work never killed anyone, but why take the chance?)
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To: Zakeet
The markets overreact.

A small dip or less than expected profits often equate to 33% drop in share values. Does that really make sense? No.

13 posted on 11/29/2007 11:36:36 AM PST by Red6 (Come and take it.)
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To: Zakeet

Sears has had the “reverse Midas touch” for years. Look at what they did to KMart and Sportmart, to name a couple of stores that I can name off the top of my head.


14 posted on 11/29/2007 11:37:17 AM PST by Hardastarboard (DemocraticUnderground.com is an internet hate site.)
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To: griswold3

Why is everyone down on Sears? Hell I’m getting ready to buy $3800 worth of appliances from them. I checked prices for what I want, they are the best AND have a greater selection then many others.


15 posted on 11/29/2007 11:37:34 AM PST by aroundabout
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To: Zakeet
Meanwhile, there's no sign that Lampert has another blockbuster acquisition in store for the company that could get its shares moving again the way his 2005 purchase of Sears Roebuck with Kmart stoked exuberance on Wall Street back in his high-flying days at the height of the housing bubble.

This is the reason I stopped shopping at Sears. They started selling cheap Kmart stuff at Sears prices.

16 posted on 11/29/2007 11:37:34 AM PST by DejaJude
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To: Zakeet

Better hurry up and use up my gift cards.


17 posted on 11/29/2007 11:38:16 AM PST by the_devils_advocate_666
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To: Zakeet

Whenever I go into my local Sears, it’s like walking into a dead zone. I’ve been expecting it to go out of business for the last ten years.


18 posted on 11/29/2007 11:40:05 AM PST by Steve_Seattle ("Above all, shake your bum at Burton.")
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To: Zakeet

Craftsman Tools really are the best.


19 posted on 11/29/2007 11:40:15 AM PST by pabianice
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To: aroundabout

Appliances are about the only thing I buy at Sears. When I look at their clothing department, I think that Seinfeld’s Kramer must be their buyer.


20 posted on 11/29/2007 11:42:52 AM PST by Steve_Seattle ("Above all, shake your bum at Burton.")
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To: griswold3; All

I retired from Sears after 31.5 years. I saw the company change from a pro employee, customer caring company to one of it’s our way or the highway. The customer really doesn’t count.

I took my money and ran. They do not care about their retirees. They raised the rates for health ins so high you can get better on the open market. I don’t look back now!


21 posted on 11/29/2007 11:43:11 AM PST by Bushman2 (Truth is a battleground not a playground)
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To: Zakeet
Well, I can tell you why I will never buy anything from Sears.
We needed a new washer and dryer ASAP a couple of years ago and got what we thought was a good deal from Sears.
We originally were paying 15 ¼% interest as long as we were paying only the minimum by check through the mail.
Once I started paying the bill online, (still the minimum once a month) the interest immediately shot up to 19 ¾% (HA! They no longer could say that my payment didn’t get there in time, so couldn’t charge a $35 late fee).
Then I started making double the minimum payments and making these payments every two weeks instead of once a month. Did the interest go down you ask? NOPE!
Instead the interest shot up to a whopping 24 ¾% and when I called and complained got a snooty reply that “This is standard business policy.”
Needless to say, the next payment paid off the washer and dryer and we will NEVER buy anything from Sears EVER again.
22 posted on 11/29/2007 11:44:10 AM PST by cuz_it_aint_their_money (Fred Thompson & Duncan Hunter in '08)
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To: Zakeet

They still are... just american’s care more about cheap crap that funds the military build up of the nation that will kill their sons on the battlefield, than they do paying a little more for a better product and service.


23 posted on 11/29/2007 11:44:24 AM PST by HamiltonJay
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To: Red6

Some stocks get slammed when they make expected profits but Wall Street wanted more.


24 posted on 11/29/2007 11:45:14 AM PST by art_rocks
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To: pabianice

“Craftsman Tools really are the best.”

90% of all my tools are Craftsman as is my air compressor, my lawn tractor and my work-bench. Good stuff.


25 posted on 11/29/2007 11:45:25 AM PST by L98Fiero (A fool who'll waste his life, God rest his guts.)
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To: cuz_it_aint_their_money

That’s the same behavior of EVERY Credit Card...

I’ve had em jack me up, when they’ve never been late, 1 payment late to someone else was the excuse for it.

Lesson isn’t avoid sears..its avoid buying on credit PERIOD.

A practice I no longer do at all.


26 posted on 11/29/2007 11:45:46 AM PST by HamiltonJay
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To: pabianice
"Craftsman Tools really are the best"

Yeah, sure thing.

Their tools break so often, one spends half his time taking them back for replacements.

You don't know much about tools I see.

27 posted on 11/29/2007 11:47:01 AM PST by battlegearboat
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To: Zakeet

OMG, we’re K-Mart!


28 posted on 11/29/2007 11:47:24 AM PST by NonValueAdded (Fred Dalton Thompson for President)
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To: NY.SS-Bar9
I walk thru the aisles in K-Mart and see the Craftsman tools ridiculously overpriced and strewn about.

Both Sears and K-Mart are horribly managed.

29 posted on 11/29/2007 11:49:08 AM PST by Rome2000 (Peace is not an option)
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To: aroundabout
I love my Sears tools. We have Sears appliances too.
30 posted on 11/29/2007 11:50:25 AM PST by stevio ((NRA))
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To: Zakeet
They should have renamed the the K-mart stores as S-marts.

Shop Smart. Shop S-Mart.

31 posted on 11/29/2007 11:53:32 AM PST by Tribune7 (Dems want to rob from the poor to give to the rich)
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To: HamiltonJay

“They still are... just american’s care more about cheap crap that funds the military build up of the nation that will kill their sons on the battlefield, than they do paying a little more for a better product and service.”

Shhhhh... there are a lot of people hoping you won’t notice and will just enjoy your cheap crap.


32 posted on 11/29/2007 11:53:56 AM PST by brownsfan (America has "jumped the shark")
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To: Zakeet

Back when they carried guns in their sporting goods dept.
Then they quit and then they started donating to anti-gun organiations like the Brady Bunch. That’s when I stopped shopping at Sears.

When I found out that Levi went the same way, I started buying Wrangler, fit better and cost less.


33 posted on 11/29/2007 11:55:37 AM PST by gc4nra ( this tag line protected by Kimber and the First Amendment (I voted for McClintock))
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To: Zakeet

I’ve been in a Sears exactly two times in my life.

I have bought one thing. A stove. A stove that they dented when they delivered it.

And then I saw that same stove at Lowe’s for about $50 cheaper.


34 posted on 11/29/2007 11:56:21 AM PST by riri
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To: DungeonMaster
I stopped buying from Sears when they make all their in store signs bilingual. However, I may reconsider given another post today about their policy of supporting the military.
35 posted on 11/29/2007 11:57:04 AM PST by Wurlitzer (Democrats= Phony Americans)
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To: Steve_Seattle

“Appliances are about the only thing I buy at Sears.”

I bought a super-high-efficiency furnace a/c unit from sears some years ago. The first five years I had it, every winter it would die. It has never worked satisfactorily and I won’t ever buy another appliance from them because of it.


36 posted on 11/29/2007 11:58:34 AM PST by PLMerite ("Unarmed, one can only flee from Evil. But Evil isn't overcome by fleeing from it." Jeff Cooper)
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To: Zakeet
They have a Christmas commercial this year encouraging wives to surprise their husbands that have been wishing for a large screen for years with a set they can "just pick" at Sears.

It struck me as insulting to people's intelligence to imply that it's okay to buy such an expensive and important item without consulting the guy it's supposed to be for. A spouse blindly following that commercial could even cause conflict in the household on Christmas day.

37 posted on 11/29/2007 11:59:10 AM PST by Teflonic
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To: Hardastarboard
They didn't do anything to KMart. KMart failed quite nicely on it's own and went into bankruptcy. They got themselves out of bankruptcy by closing stores and selling what was extremely valuable real estate. They not only made enough from real estate sales to get out of bankruptcy, but to buy into Sears and merge with them.

Sears was already having problems of it's own as well.

Now the combined companies are back to looking at how much they can make from selling the real estate from their failing stores again.

38 posted on 11/29/2007 12:05:02 PM PST by untrained skeptic
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To: PLMerite

The thing that kills me about Sears is they sell a “quality” product and then do the strong sale on the extended warrenty.


39 posted on 11/29/2007 12:05:36 PM PST by zek157
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To: Zakeet

There is a Sears/KMart near where I work. Anytime I’ve been in there it’s mostly empty. They’ve revamped the store several times. Their latest gimmick is selling “gourmet” food. I noticed a bag of Kettle Chips for $5.69. I can get the same thing at the Trader Joes across the street for $3.69. The only thing “gourmet” is the price.


40 posted on 11/29/2007 12:08:49 PM PST by jrp
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To: HamiltonJay

Amen! Screw the chicoms!!!

LLS


41 posted on 11/29/2007 12:10:19 PM PST by LibLieSlayer (Support America, Kill terrorists, Destroy dims!)
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To: Zakeet

The ‘new’ K-Mart isn’t a retailer, it is a real estate liquidation outfit. After they ran through the cream of the K-Mart inventory, they bought Sears to start liquidating that real estate. Here’s the real problem, “real estate values are mired in a cloud of uncertainty”.


42 posted on 11/29/2007 12:11:47 PM PST by PAR35
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To: Teflonic
My Sears story.

I went into the local store looking for a bed frame. They didn’t have the size in needed in stock but said they could order one for me. I said I wanted to check some other stores first to see if anyone had a frame in stock.

Sear’s employee: “No problem, just give us a call if you want to order one and then pick it up.”

A few days later I called to have one ordered. After being put on terminal hold several times I finally got someone to take my order.

“Do you have a Sears credit card?”

“No, I have a regular credit card.”

“I’m sorry, we can only accept phone orders using a Sears’ credit card. You can order one on-line”

“I checked on-line and they want $65 for shipping a $80 dollar item.”

“If you come to the store you can order one using a regular credit card.”

“So you want me to come to the store (one hour round trip) just to show you my credit card? Then I have to come back (another hour round trip) to pick up the item?”

“I’m sorry, that’s our policy.”

I then asked to speak to the manager, who never called back.

Good riddance to a lousy company. They deserve to go broke.

43 posted on 11/29/2007 12:16:37 PM PST by BigBobber
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To: Ann Archy

Not LL Bean, they bought Lands End.

Soon afterward, they did away with my favorite Chino jeans.


44 posted on 11/29/2007 12:20:34 PM PST by bert (K.E. N.P. +12 . Moveon is not us...... Moveon is the enemy)
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To: Zakeet

This is a damned shame. This is one of the very few companies that whole-heartedly supports the troops called up and their families.

IIRC, when a Sears employee is called up, if his military pay is less than what he makes at Sears, Sears will pay the difference. The employee will continue to get any raises and bonuses he would be entitled to during his or her deployment. And all benefits, including insurance continue. All this for up to TWO YEARS!

I make a point of trying to shop at Sears when I need to buy something.

It may not be the best business sense, but they need to be lauded for their policy.

Mark


45 posted on 11/29/2007 12:21:31 PM PST by MarkL (Listen, Strange women lyin' in ponds distributin' swords is no basis for a system of government)
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To: Zakeet

Sears where the prices are high, the “service” is surely or non-existent, and the stuff is crap? That Sears? OK, Craftsman tools are still good, but not as good as they once were...


46 posted on 11/29/2007 12:22:23 PM PST by GOPJ ("Imagine the Outrage if FOX had Fixed a “debate” like this??" Freeper bray -- "CNN Sucks" - GOPJ)
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To: BigBobber

Have you seen the women’s clothes at Sears! They’re horrible, cheap, old-fashioned things. I haven’t been in a Sears for years and then only to buy paint. The stores are ugly, dreary places.


47 posted on 11/29/2007 12:23:40 PM PST by californianmom
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To: pabianice
Craftsman Tools really are the best.

They're not always (or even usually) the best available, but they're the best deal as long as Sears stays solvent. I've probably bought over $50,000.00 worth of hand tools over my lifetime, and over 90% of them are Craftsman, because when one of them breaks it's pretty easy to find a Sears store. They have always replaced any hand tools I have returned on the spot, no questions asked. Even if it's something as simple as a phillips head screwdriver where the tip is getting worn. They replace it. Period.

It's not always so easy to locate a Snap-On truck. :)

Power tools are another matter entirely. Craftsman power tools are usually on the lower end of quality, and they don't have that gorgeous warranty that the hand tools have. I gravitate towards other brands of power tools.

48 posted on 11/29/2007 12:24:12 PM PST by MarineBrat (My wife and I took an AIDS vaccination that the Church offers.)
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To: Zakeet

Sears was bailed out once by Discover, they have been just dying a slow death. Maybe if there signs were in English we’d shop there more.


49 posted on 11/29/2007 12:28:14 PM PST by ThisLittleLightofMine
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To: DungeonMaster

I bought one of their most expensive cloths washers, and also bought a “Lifetime” waranty...well they had a classaction lawsuit ( which i did not need) and they canceled my “lifetime” waranty, but did not refund my money.

screw Sears...Ill never buy another thing from them.


50 posted on 11/29/2007 12:31:16 PM PST by LtKerst (Lt Kerst)
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