I’ve never understood. Is Lampert just using Sears Holding Company as a tax writeoff? And why does Jim Cramer from “Mad Money” keep recommending it?
I remember when Cramer was recommending Sears Holding when it was still quite high in price. He believed in the management, and said it could eventually reach the heights like Berkshire Hathaway. I am surprised that he would still recommend it.
Tax write off .....that’s a canard used by business journalists who are pinkos
Tax write offs are nonsensical now for decades since Reagan.
Lampert is no fool....he bought Sears via KMart because he saw it on the cheap
The dirt and buildings....and he spun off the prizes....Sears Canada and Lands End to try to save it
Debt Equity is now 40/1
Sales shrinking and they sold the Kenmore brand another moneymaker for cash they needed
He’s not going to spend his last dime to make debt servicing ...
He’s chapter 11 bound....maybe even 7
It’s just not a viable business model anymore
They outlasted Woolco and Western Auto
it remains to be seen if the hard asset divestiture will cover the nearly 5 billion in debt