Author Topic: SHLD - Sears  (Read 2075324 times)

alertmeipp

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SHLD - Sears
« on: November 16, 2012, 06:32:51 PM »
Surprise I can't find a subject with Sears... it tanks 20% today.

hellsten

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Re: SHLD - Sears
« Reply #1 on: November 17, 2012, 01:04:01 AM »
Interesting. I remember reading a quarterly letter last week about how money managers are piling in to high-dividend and high-quality stocks. I wonder if it's this flight-to-quality that is pushing down all these smelly stocks or am I hallucinating?

Here are a few links:
http://www.grahamanddoddsville.net/wordpress/Files/Gurus/Bruce%20Berkowitz/OID%20-%20Bruce%20Berkowitz%20-%203-17-2009.pdf
http://www.fairholmefunds.com/sites/default/files/120815%20SHLD%20Presentation.pdf
http://www.manualofideas.com/files/shld_moi_20081223.pdf (from 2008...)

Value Line doesn't seem to like SHLD (don't remember how fresh this report isÖ):
Quote
TIMELINESS 5 Lowered 4/20/12
SAFETY 3 New 5/13/05
TECHNICAL 3 Raised 3/9/12
BETA 1.05 (1.00 = Market)
2015-17 PROJECTIONS
Anníl Total
Price Gain Return
High 55 (+10%) 2%
Low 35 (-30%) -9%
« Last Edit: November 17, 2012, 01:05:41 AM by hellsten »

FCharlie

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Re: SHLD - Sears
« Reply #2 on: November 17, 2012, 05:25:28 AM »
I too was surprised no one was talking about the 20% drop. The loss was better than expected, but still just more of the same. A company that appears worth so much more dead than alive, yet can't aggressively liquidate in this economy.

It seems that Sears has gone from being either completely loved or completely hated to simply no one cares anymore.


DCG

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mysticdrew

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DCG

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Re: SHLD - Sears
« Reply #6 on: November 17, 2012, 08:28:20 AM »
http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/shld-anyone/msg75867/#msg75867

And?

it answers your original comment
"Surprise I can't find a subject with Sears"

This. While there doesn't seem to be a post in 'investment ideas' Sears has been discussed in this thread.

Shane

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Re: SHLD - Sears
« Reply #7 on: December 02, 2012, 11:59:50 AM »
From what I have heard from this site and others, my impression of SEARS was very poor.  I imagined depressed workers, crappy products, and low foot traffic.

Recently I went to their Miami retail store while visiting the city... It was a great place to shop.  Friendly staff, good product selection, and full of shoppers.  Their auto center was on the same property so I imagine people shop while they are getting auto work done.  I was impressed with the reality of the store contrasted with my expectations.

Maybe it was a new model, recently remodeled, or just a new store.
« Last Edit: December 02, 2012, 01:23:40 PM by Shane.Smith »

rmitz

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Re: SHLD - Sears
« Reply #8 on: December 02, 2012, 12:37:16 PM »
From what I have heard from this site and others, my impression of SEARS was very poor.  I imagined depressed workers, crappy products, and low foot traffic.

Recently I want to their Miami retail store while visiting the city... It was a great place to shop.  Friendly staff, good product selection, and full of shoppers.  Their auto center was on the same property so I imagine people shop while they are getting auto work done.  I was impressed with the reality of the store contrasted with my expectations.

Maybe it was a new model, recently remodeled, or just a new store.

There is definitely a range of quality at sears locations, but in my experience the Kmart locations are the depressing ones.

FCharlie

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Re: SHLD - Sears
« Reply #9 on: December 02, 2012, 04:00:05 PM »
Open question to all:

What would it take to get you interested in, or more interested in SHLD?

For me, SHLD was one of my largest positions a couple of years ago when they were consistently producing free cash flow and repurchasing shares. I viewed it not as a retailer but as a giant pile of assets being priced as if it were scrap.... and every quarter that passed, I owned more and more of it. The stores were always weak but I like Bruce Berkowitz point that SHLD has more real estate than Simon Property Group yet only has 1/10th the market value... On top of that you have greater than $50/share of net inventory. The share repurchases have stopped. The free cash flow has dried up, and today I sit and wait, not really adding but not selling either.

Thoughts anyone?