Up until very recently, retail executives were hoping holiday sales might be up 2% or 3%, but most of that optimism has faded. According toThe Wall Street Journal, "Chief marketing officers at 100 retail companies said in a survey by BDO Seidman LLP that they expect their companies' same-store sales in November and December to fall an average of 2.7%."
Declining sales mean some retailer companies either won't make it or will be faced with significant store closures and layoffs. Circuit City (NYSE: CC)
IMHO, as of 6:20 am 9/8/2008, by the valuation numbers only, relative to its industry, SHLD is overvalued:
SHLD's projected P/E is 47.2x while its industry (Department Stores) is averaging a projected P/E of 21.0x, implying a projected stock price of $40.40.
SHLD's projected earnings growth rate is 12.33% and its PEG is 3.83 while the industry average PEG is 1.82, implying a projected stock price of $43.09.
The results for Sears’ (SHLD) second fiscal quarter are now out and, for most people, they are not very pretty. Year over year sales declines, net income down, lowered guidance. These things are, in essence, death to any retailer, or any publicly traded corporation for that matter.
TheStreet.com's Jim Cramer says lower gas prices mean the numbers are too low.
People are missing this retail move. They are missing it because the market is deciding right now that the guidance companies are giving is just plain wrong given the $3.50 at the pump (although premium's a lot more expensive). They are also recognizing that the strong are surviving and thriving and taking share in a radica...
When management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it's the reputation of the business that remains intact. - Warren Buffett
Eddie Lampert has a simple strategy when it comes to investing: Buy a large portion of stock in a particular company in which he can influence the management, cut expenses at the company and use the money to buy back stocks. He has been successful so far. Autozone (AZO) is a great example.
It has been a year since we started some of our model portfolios. Each model portfolio consists of the top 25 stocks top ranked with its criteria. How did the model portfolios do? What worked and what didn’t? What are we doing differently this year?
Performance Review
The Most Weighted Portfolio did best in 2006, gained more than 22% without including the dividends. This portfolio consists of the 25 stocks with the highest combined weightings. There is only 1 loser among the 25 stocks, which is Progressive Insurance (PGR). The top performers are Comcast CMCSK and Sears (SHLD
With its market price declining daily, giving me the opportunity to pick up even more shares, I thought I’d present a very rough look at how the market is valuing Sears Holdings (SHLD) right now, putting reasonable numbers to a rather abstract investment idea.
Reality check number 1: In normal times, Sears is generating a good $50 billion in sales. $50B. The current market value hovers around $10B, or one fifth of sales. Add in net debt ($2.7B in LT debt and capital lease obligations plus a $1.1B pension shortfall) and subtract cash ($1.4B), enterprise value goes up to about $12.5B. Is Se
Bill Parcells had a great quote that has always stuck with me. He was asked about his team (that at the time was 2-6 but had lost some close games) whether or not he felt the team was better than its record. His reply, "You are what you are". If you are 2-6 that is what you are, nothing more and nothing less.
Sears Holdings (SHLD), the fourth largest broadline retailer in the US, recently reported a net loss of $56 million, or $0.43 loss per share in Q1 2008 versus net income of $223 million in Q1 of 2007. Total US same-store sales declined 8.6%.
Sears attributed this decline to several reasons: 1. Increasing competition. 2. Weakness in the general economy and housing market. 3. Increased costs in consumer staples such as food and gas. Interim CEO Bruce Johnson said, "Our first quarter results reflect the difficult economic environment and intense competition for consumer business." Following th
5/29 - "Now the hysterical folks out there will screaming about a loss that ought not be all that surprising. Those of us who invest in the business, look at the balance sheet and cash position and recognize those are a solid as ever. As a mater of fact, when compared to competitors JC Penny (JCP), Kohl's (KSS), Macy's (M) and even Home Depot (HD), Sears has by far the strongest balance sheet. It also is the largest appliance retailer by FAR. Since that category currently is being hit very hard by housing, it only stands to reason that they will suffer more than the others. "
"What to do? ...
5/29 - "Another quarter in the books for Sears Holdings (SHLD), and another lackluster effort on the retail front. These days it seems hopes for profit come only from the Holdings rather than the Sears as Hedge Fund manager turned executive Ed Lampert has been unable to turn around the retail division with any amount of success in recent quarters...Sears posted a net loss of $56Million ($0.43/share). On the top line, Revenue fell almost 6% to $11.07Billion."
"...gross margins declined by 1% to 27%. As the economy weakened in the United States, it became clearer that bigger ticket items wou...
Last week saw a good deal of action in the markets. The bad news is that even as we were excited to enter the long weekend and the Hamptons are starting to see more life and less clothes (so I am told). The bad news is starting to sink-in and the simple fact that the oil price “blip” is not such a “blip” is upsetting investors. If that wasn’t bad enough, the weekend BBQ now costs a gonsa-fortune! We stopped on the side of the road to pick up some watermelon and were shocked when we realized that it was $9 for ONE! So, one rib, on wing and one peach is all you get in 2008 for what is costs f
With the news that Target (TGT) has agreed to sell $3.6 billion worth
of credit card receivables to JP Morgan (JPM), one cannot help but
notice Ackman has not made a single demand from Edward Lampert at Sears
holdings (SHLD). This would be the only investment in memory he has
taken such a stance.<!--more-->
Ackman was at Sears' annual meeting and did ask a few benign questions. According to Ackman, his 5 million share investment in Sears "is due to Eddie Lampert".
Nowsome will say that Ackman has been quiet because "he knows Lampert" orsome such foolishness. Let's be honest, you do not i...
Footstar Inc. (FTAR) is selling its footwearlicense to Sears Holdings (SHLD) for $13 million in preparation forwinding down its business at the end of the year. Footstar agreed tosell substantially all of its intellectual property to Sears, includingthe intellectual property related to Sears’ Kmart business.<!--more-->
Footstaroperates roughly 1,300 licensed footwear departments at Kmart under acontract set to expire at the end of 2008. They also operate licensedfootwear departments in 859 Rite Aid Corporation stores located on theWest Coast. Brands under Footstar’s operations include Thom M...
The Big Box Battle: Dogs or Discounts?
- There has been been some great battles in recent years between big box stores. Winners like Walmart, Best Buy and losers like Kmart and Ultimate Elect...
Trader who needs HELP!!
- Im looking for a Stock Pick Website. What are the most important things for me to look for? What makes a good Stock Pick site? What sort of content sho
Data powered by QuoteMedia.
All Rights Reserved.
Data delayed 15 to 20 minutes unless otherwise indicated.
Terms of Use.
None of the information contained on SocialPicks.com constitutes a recommendation by SocialPicks or its users that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. SocialPicks is not responsible for the posts, discussions, and recommendations of the users on the Site. SocialPicks does not provide investment advice. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the website. SocialPicks' users' past results are not necessarily indicative of future performance. Neither SocialPicks nor any of its users guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the website. You understand and agree that you use the Site and Services at your own discretion and risk and that you will be solely responsible for any damages that arise from such use. Before acting on any information contained on the website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
SHLD
SHLD
About Sears Holdings Corp
- Answers.com
