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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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To: MarineBrat

craftsman power tools are worthless garbage that are unfit to plug in let alone use imho of course.


61 posted on 11/29/2007 12:59:18 PM PST by zek157
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To: Zakeet

Ed Lampert is one of the genuine smart guys of the hedge fund crowd. If Sears, K-Mart etc. are taking a beating, then something big is going on.


62 posted on 11/29/2007 1:00:45 PM PST by durasell (!)
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To: Humble Servant

THANKS!!


63 posted on 11/29/2007 1:03:40 PM PST by Ann Archy (Abortion: The Human Sacrifice to the god of Convenience.)
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To: Zakeet
I can honestly say I have not set foot in a Sears store in 10 years and I don’t plan to. However,back in the early 1970’s Sears was the place to buy albums and concert tickets. Foghat,Poco and Johnny Winter all for 6 bucks!
64 posted on 11/29/2007 1:12:54 PM PST by 4yearlurker (Thanks Vets!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!)
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To: Zakeet

The Sears in Cool Springs in Franklin, TN does a good business. They have a good tire and auto center.

But most people just use it because it’s more convienent to park outside Sears and go into the mall.


65 posted on 11/29/2007 1:17:21 PM PST by Fledermaus (The Dark Knight is coming !)
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To: MarineBrat
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

That's interesting. I bought a Craftsman battery-powered drill back about 1994 and literally worked it to death. It was one of the most well-crafted, reliable drills I've ever owned.

Stupid me, when I replaced it I bought a Black and Decker drill that was a total piece of crap, and it was only a few dollars cheaper than the Craftsman was.

Lesson learned.
66 posted on 11/29/2007 1:19:20 PM PST by reagan_fanatic (Ron Paul put the cuckoo in my Cocoa Puffs)
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To: DManA

The manufactures do make their products for other retailers, i.e. Sears, but with the retailers specifications. In some cases the parts may be less quality than their own brand name.


67 posted on 11/29/2007 1:42:35 PM PST by Bushman2 (Truth is a battleground not a playground)
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To: ThisLittleLightofMine
The value of Sears stock is based on the value of the real estate the stores are sitting on. The K-Mart acquisition was a pure real estate play engineered by a really smart Wall Street investor. The investors don’t care about retailing, they will make money selling off the real estate piece meal, or in a liquidation.
68 posted on 11/29/2007 1:43:52 PM PST by Old North State
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To: untrained skeptic

You’re probably right about that. KMart was partly their own undoing, and Wal-Mart was partly their undoing as well.


69 posted on 11/29/2007 1:58:02 PM PST by Hardastarboard (DemocraticUnderground.com is an internet hate site.)
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To: Tribune7
Shop Smart. Shop S-Mart.

Good, obscure reference. I saw that movie the other day. Was really, really dumb. (And a whole lot of fun. Enjoyed every minute of it.)

70 posted on 11/29/2007 2:06:14 PM PST by scan59 (Let consumers dictate market policies. Government just gets in the way.)
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To: Teflonic
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.

That's what I think when I see the Zales diamond and Lexus new car for Christmas commercials. If it's going to impact the budget, some purchases need to be discussed with your spouse.

71 posted on 11/29/2007 2:08:22 PM PST by scan59 (Let consumers dictate market policies. Government just gets in the way.)
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To: zek157
Before Montgomery wards was closed down by GE you could buy a nice self-propelled, rear wheel drive bagging lawnmower and a 4 year service agreement for $225.00 The service agreement included an annual tune up and you paid only for parts - a real deal for 4 years of trouble free mowing.

Sears finally got smart and is offering the same deal now but for closer to $275.00

72 posted on 11/29/2007 2:09:00 PM PST by x_plus_one (The entire Islamic moral universe devolves solely from the life and teachings of Muhammad.)
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To: scan59
Was really, really dumb. (And a whole lot of fun. Enjoyed every minute of it.)

I feel the same way about it.

73 posted on 11/29/2007 2:10:03 PM PST by Tribune7 (Dems want to rob from the poor to give to the rich)
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To: DManA

Janome has made Sear Kenmore sewing machines for years and the machines are first quality but less pricey than the higher end Janome....


74 posted on 11/29/2007 2:10:05 PM PST by x_plus_one (The entire Islamic moral universe devolves solely from the life and teachings of Muhammad.)
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To: reagan_fanatic

Your experience is surely the exception. When I am on jobsites all I generally see is Makita and DeWalt.


75 posted on 11/29/2007 2:11:54 PM PST by CalvaryJohn (What is keeping that damned asteroid?)
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To: HamiltonJay

A lot of the problem is they’ve completely mismanaged the merger with K-Mart. And done so in a way that leads to confused costumers and lost sales. Over the summer I needed a new bike (finally ran mine into the ground), poking around on the web I found a selection at sears.com ( http://www.sears.com/shc/s/c_10153_12605_Fitness+%26+Sports_Bicycling ), I go to Sears to look at the bikes (I don’t buy things like that without at least touching it first), they don’t have bikes at Sears, bikes are sold at K-Mart, go to K-Mart and there’s the bikes, none of the models I saw on the Sears website but they have bikes, look some more realize there are no mens bikes only womens, find a person, turns out they only put bikes together on Mondays and by Saturday around noon (when I’m there) they’re out of mens bikes, seems to me like people might be buying bikes on Saturday. So I go to Target, where I find bikes, mens bikes, the same ones that were no the website.

And now Sears isn’t making any money. Color me not surprised, and not willing to consider them a good company anymore.


76 posted on 11/29/2007 2:16:56 PM PST by discostu (a mountain is something you don't want to %^&* with)
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To: reagan_fanatic
That's interesting. I bought a Craftsman battery-powered drill back about 1994 and literally worked it to death. It was one of the most well-crafted, reliable drills I've ever owned.

I've owned many Craftsman power tools and have had good luck with some and bad luck with others.

I own a Craftsman 16 gallon, 6.25/horsepower, Wet/Dry vacuum that may be the single most "worth the money" tool I've ever owned. I've beaten that thing to death, and sucked up things that go beyond even mentioning in polite society, and yet it still works like a champ.

But then on the other hand, I've owned a Craftsman random orbit sander that died in just a few months, and a cordless drill that lasted about six months. (Craftsman power tools are all made in China now)

I bought a Makita 633D, 1/2" chuck cordless drill after that Craftsman one died and have absolutely loved it, though I've had to replace the batteries after 5-6 years.

Two things come to mind to describe purchasing a power tool, and to some degree they are conflicting.

1) You get what you pay for.
2) It's all a crapshoot. :)

I just hope Sears stays in business. I'd hate to lose the Craftsman guarantee I've been paying for all these years. I'd bet that even if Sears goes belly up the Craftsman tool brand would continue.

77 posted on 11/29/2007 2:21:20 PM PST by MarineBrat (My wife and I took an AIDS vaccination that the Church offers.)
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To: Hardastarboard
Wal-Mart was partly their undoing as well.

KMarts around here were always horribly run, and seems to attract the least motivated and friendly employees as well.

Their shelves were a mess. If there was a price on the shelf, it was more likely to be for a different product, or be outdated than it was to be the correct price.

They had the slowest moving checkout lines I have ever seen. They put in self checkout lines, but had to quit using them because their customer base tended to be on the less honest side, and their employees watching the self checkout lanes were oblivious to everything.

KMart was poorly run for a very long time. Wal-Mart gave KMart more competition than they could handle by being more efficient, and seemingly at least marginally better at just about everything.

Why shop at KMart when you can buy the same kind of crap cheaper at Wal-Mart and have at least a marginally better shopping experience at the same time?

78 posted on 11/29/2007 3:08:21 PM PST by untrained skeptic
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To: US_MilitaryRules
If the Craftsman hand tools go, what are the alternatives?

You have Lowes and Home Depot with their lifetime warranty on their tools.

Lowes now is selling a line of Mechanics Tools called Kobalt which is made by Snap-On. They are good tools.

Home Depot's Husky brand is made by Stanley Mechanics Tools, a division of the Stanley Works. Husky are also good tools and have a good lifetime warranty (they'll even replace your broken Craftsman with an equivalent Husky).

79 posted on 11/29/2007 3:59:57 PM PST by rawhide
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To: MarineBrat
Lowes now is selling a line of Mechanics Tools called Kobalt which is made by Snap-On. They are good tools.

Home Depot's Husky brand is made by Stanley Mechanics Tools, a division of the Stanley Works. Husky are also good tools and have a good lifetime warranty (they'll even replace your broken Craftsman with an equivalent Husky).

80 posted on 11/29/2007 4:03:09 PM PST by rawhide
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