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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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