SHLDQ - Sears Holdings Corp

[Luke 532]

Sears®, Kmart® Team to Expand Free Store Pickup to More Than 2,000 Locations

http://searsholdings.mediaroom.com/index.php?s=16310&item=137295

 

Here's the blog comments on the press release: http://blog.searsholdings.com/leadership-viewpoint/expanding-free-store-pickup-bringing-kmart-to-your-nearest-sears-store-and-sears-to-your-nearest-kmart-store/

[bmichaud]

What a tragic tale.

 

For those buying 8-10 years ago, yes, it has been a tragedy.  For those buying today I see a much different story being told long-term.

 

Here's the article:

 

http://www.businessweek.com/stories/2004-11-21/the-next-warren-buffett

 

I would imagine anybody that has a position or is watching SHLD has read that article before... at least I would hope so!

 

 

 

Was thinking more of a tragedy from his career standpoint. Over a decade literally pissed away. Buffett says his worst mistake was buying BRK b/c of the drag textiles were. BRK was largely transformed by the mid-1970s after buying in full in 1965...and he STILL thought it was his worst mistake.

 

There are no words for the disaster SHLD has been for Lampert's investing career, and net worth for that matter. Can one even fathom the wealth he could have created by liquidating Kmart over time and continuing to purchase AN and AZO? It's sickening.

 

Note to future self: do not attempt things, in size, outside of your circle of competence....ala Lampert and Falcone....it will ruin your career.

[FCharlie]

I remember Eddie buying AutoZone at $20 per share... Tons of it.  I remember him buying AutoNation at $6 per share.  I'm pretty sure most of his SHLD was bought via KMRT bonds and they converted at about $10 per share.

 

Even though he's still up on his SHLD and he's still a legend, it's indeed a tragedy to watch what has happened compared to what I and many others expected to happen. Eddie's been way to slow to move... which would have been great had SHLD been consistently producing cash and Eddie using it to consistently shrink the share count. Instead we've had seven years of crappy and unpredictable results coming from a couple of stores that are total garbage, a pension nightmare, and a business that's so frustrating that although I still own a good chunk, I barely even care anymore.

 

 

[Evolveus]

"a business that's so frustrating that although I still own a good chunk, I barely even care anymore."

 

 

+1

[merkhet]

I remember Eddie buying AutoZone at $20 per share... Tons of it.  I remember him buying AutoNation at $6 per share.  I'm pretty sure most of his SHLD was bought via KMRT bonds and they converted at about $10 per share.

 

Even though he's still up on his SHLD and he's still a legend, it's indeed a tragedy to watch what has happened compared to what I and many others expected to happen. Eddie's been way to slow to move... which would have been great had SHLD been consistently producing cash and Eddie using it to consistently shrink the share count. Instead we've had seven years of crappy and unpredictable results coming from a couple of stores that are total garbage, a pension nightmare, and a business that's so frustrating that although I still own a good chunk, I barely even care anymore.

 

 

 

Considering that only a little more than 250,000 shares traded today, I think a lot of people share your sentiment of not caring anymore...

[focusinvestor]

One of the real questions investors have to ask is "Are asset values of the real estate growing or declining?". My view is that they are growing (given the lack of new mall growth and the demand discussion by the likes of Simon and GGP etc.) They have demonstrated this over and over again with various properties. The death of retail is not unilateral in that certain segments prove value-add where brick and mortar retailing is an important channel (e.g. Apple Stores, Whole Foods, Pottery Barn, etc.)

 

We have a world-class capital allocator at the helm who has not suddenly just lost his marbles. As you all know, this kind of apathy also existed in Fairfax in 2005 and 2006. Everyone seemed to be saying at the time that Prem had lost his marbles as well. Eddy is as good as he ever was... while he has had a tremendous opportunity cost in the last seven years, he has navigated various headwinds as well that were not entirely self-inflicted.

 

If assets have to be sold quickly to fund losses, our equity value will suffer. If Eddy is able to stabilize sales, which he seems to be doing, we will be in great shape. If Eddy is able to demonstrate sustainable growth, we will have a home run.

 

This investment is not likely to work next week, next month, or even next year. But it will likely work eventually given that we aren't going to lose much if Eddy can't stabilize the ship. I like those odds.

 

 

 

 

[merkhet]

I suspect that the investment will work out a little faster than most people think. I also suspect that we might get two bites at the apple... one short-term and one long-term.

[Kraven]

What would really fix Sears is if Eddie went on Undercover Boss.  That way he could see the state of things as they really are.  He could play a down on his luck surfer dude from San Dimas, CA who lost his health food store as a result of the financial crisis.  In one segment he could visit a K-Mart and be a member of the janitorial service.  He would probably struggle with the clean up and one of his "supervisors" would confess to the camera out of earshot that Eddie "really doesn't have what it takes to work there." 

 

Eddie could befriend a middle aged cashier who loved the "old K-Mart" and wishes the store could get back to its glory days.  She would break down in tears disclosing to him that if she could just pay for her mother's bunion surgery all would be right with the world.  It would also slip out that her van has broken down and she takes 3 buses to get to work. 

 

During the reveal, Eddie would say that he is going to pay for her mother's bunion surgery "immediately" and hopes to see her walking to the bingo parlor soon.  Further, he is going to donate $10k to the charity of her choice and last but not least there is a gently used Honda Civic waiting out back so that she always has a reliable car to get to work and should never worry about that again.  They would hug after that and both get teary.  As she is walking away Eddie would promise her that K-Mart will once again be "America's favorite discount store".  She would smile and say "I'll hold you to that!" as it goes to commercial.

[OracleofCarolina]

Kraven,

 

Thanks for that..made my day!

[ERICOPOLY]

What would really fix Sears is if Eddie went on Undercover Boss.  That way he could see the state of things as they really are.  He could play a down on his luck surfer dude from San Dimas, CA who lost his health food store as a result of the financial crisis.  In one segment he could visit a K-Mart and be a member of the janitorial service.  He would probably struggle with the clean up and one of his "supervisors" would confess to the camera out of earshot that Eddie "really doesn't have what it takes to work there." 

 

Eddie could befriend a middle aged cashier who loved the "old K-Mart" and wishes the store could get back to its glory days.  She would break down in tears disclosing to him that if she could just pay for her mother's bunion surgery all would be right with the world.  It would also slip out that her van has broken down and she takes 3 buses to get to work. 

 

During the reveal, Eddie would say that he is going to pay for her mother's bunion surgery "immediately" and hopes to see her walking to the bingo parlor soon.  Further, he is going to donate $10k to the charity of her choice and last but not least there is a gently used Honda Civic waiting out back so that she always has a reliable car to get to work and should never worry about that again.  They would hug after that and both get teary.  As she is walking away Eddie would promise her that K-Mart will once again be "America's favorite discount store".  She would smile and say "I'll hold you to that!" as it goes to commercial.

 

Everything is awesome!  Everything is cool...

[AZ_Value]

What would really fix Sears is if Eddie went on Undercover Boss.  That way he could see the state of things as they really are.  He could play a down on his luck surfer dude from San Dimas, CA who lost his health food store as a result of the financial crisis.  In one segment he could visit a K-Mart and be a member of the janitorial service.  He would probably struggle with the clean up and one of his "supervisors" would confess to the camera out of earshot that Eddie "really doesn't have what it takes to work there." 

 

Eddie could befriend a middle aged cashier who loved the "old K-Mart" and wishes the store could get back to its glory days.  She would break down in tears disclosing to him that if she could just pay for her mother's bunion surgery all would be right with the world.  It would also slip out that her van has broken down and she takes 3 buses to get to work. 

 

During the reveal, Eddie would say that he is going to pay for her mother's bunion surgery "immediately" and hopes to see her walking to the bingo parlor soon.  Further, he is going to donate $10k to the charity of her choice and last but not least there is a gently used Honda Civic waiting out back so that she always has a reliable car to get to work and should never worry about that again.  They would hug after that and both get teary.  As she is walking away Eddie would promise her that K-Mart will once again be "America's favorite discount store".  She would smile and say "I'll hold you to that!" as it goes to commercial.

 

Everything is awesome!  Everything is cool...

 

Dude... That is not cool. Do you know how hard it is to get that stupid song out of your head once it's in there? This is the second time in a few days you do this. One more time and I'm afraid we're gonna have to ask Sanjeev to intervene.

 

 

[ragnarisapirate]

What would really fix Sears is if Eddie went on Undercover Boss.  That way he could see the state of things as they really are.  He could play a down on his luck surfer dude from San Dimas, CA who lost his health food store as a result of the financial crisis.  In one segment he could visit a K-Mart and be a member of the janitorial service.  He would probably struggle with the clean up and one of his "supervisors" would confess to the camera out of earshot that Eddie "really doesn't have what it takes to work there." 

 

Eddie could befriend a middle aged cashier who loved the "old K-Mart" and wishes the store could get back to its glory days.  She would break down in tears disclosing to him that if she could just pay for her mother's bunion surgery all would be right with the world.  It would also slip out that her van has broken down and she takes 3 buses to get to work. 

 

During the reveal, Eddie would say that he is going to pay for her mother's bunion surgery "immediately" and hopes to see her walking to the bingo parlor soon.  Further, he is going to donate $10k to the charity of her choice and last but not least there is a gently used Honda Civic waiting out back so that she always has a reliable car to get to work and should never worry about that again.  They would hug after that and both get teary.  As she is walking away Eddie would promise her that K-Mart will once again be "America's favorite discount store".  She would smile and say "I'll hold you to that!" as it goes to commercial.

 

Everything is awesome!  Everything is cool...

 

Dude... That is not cool. Do you know how hard it is to get that stupid song out of your head once it's in there? This is the second time in a few days you do this. One more time and I'm afraid we're gonna have to ask Sanjeev to intervene.

 

Come on duee

 

That would be neat. I would actually be really interested to see what Biglari could do with the chain.

[Luke 532]

Shop Your Way(SM) Introduces New Rewards Partners Offering Members More Points at More Places

July 10, 2014

http://searsholdings.mediaroom.com/index.php?s=16310&item=137296

[adesigar]

What would really fix Sears is if Eddie went on Undercover Boss.  That way he could see the state of things as they really are.  He could play a down on his luck surfer dude from San Dimas, CA who lost his health food store as a result of the financial crisis.  In one segment he could visit a K-Mart and be a member of the janitorial service.  He would probably struggle with the clean up and one of his "supervisors" would confess to the camera out of earshot that Eddie "really doesn't have what it takes to work there." 

 

Eddie could befriend a middle aged cashier who loved the "old K-Mart" and wishes the store could get back to its glory days.  She would break down in tears disclosing to him that if she could just pay for her mother's bunion surgery all would be right with the world.  It would also slip out that her van has broken down and she takes 3 buses to get to work. 

 

During the reveal, Eddie would say that he is going to pay for her mother's bunion surgery "immediately" and hopes to see her walking to the bingo parlor soon.  Further, he is going to donate $10k to the charity of her choice and last but not least there is a gently used Honda Civic waiting out back so that she always has a reliable car to get to work and should never worry about that again.  They would hug after that and both get teary.  As she is walking away Eddie would promise her that K-Mart will once again be "America's favorite discount store".  She would smile and say "I'll hold you to that!" as it goes to commercial.

 

Everything is awesome!  Everything is cool...

 

Dude... That is not cool. Do you know how hard it is to get that stupid song out of your head once it's in there? This is the second time in a few days you do this. One more time and I'm afraid we're gonna have to ask Sanjeev to intervene.

 

Agreed. And it just the 2 lines that are stuck in a loop. Not the whole song.

 

[Liberty]

http://www.peridotcapital.com/2014/07/sears-holdings-confirmed-third-party-tenant-leases.html

[Luke 532]

http://www.peridotcapital.com/2014/07/sears-holdings-confirmed-third-party-tenant-leases.html

 

That's a very useful post.  Thanks for the link, Liberty.

 

Thanks for keeping a running list, Chad.

[peridotcapital]

http://www.peridotcapital.com/2014/07/sears-holdings-confirmed-third-party-tenant-leases.html

 

That's a very useful post.  Thanks for the link, Liberty.

 

Thanks for keeping a running list, Chad.

 

No problem, I uncovered several new ones with many hours of research and I figured putting the list outside of COBF would maximize the number of people who can help contribute to it. We'll likely never know every single lease out there without help from the company, but we can try to come close!

[sampr01]

Hi everyone,

 

SHLD selling more electronics, and other items with SYW point promotion. For example, if you buy, Alphaline™ Glass and Metal TV Stand + $95 back in points for $108 at Kmart, but same stand was sold by Sears for $40 previously. They have similar kinda of promotion recently on Camera DSLR bag, and 40 inch TV wall mounts (69$) etc. Except for DSLR bag, they are not worth paying close to  MSRP. Essentially, sears selling SYW points at 50% off, and lot of people are buying. Interestingly, they are selling lot of LED tv's, Plasma, tablets at good price with $100-300 SYW points. I think we will see increase in sales in electronics dept this quarter based on my observations.

 

For some products, Sears website gives actual price at Amazon (comparison)

 

Here my concern: If you have SYW points, you can just rinse and repeat by just paying 1 cent cash along with points. I don't know how many people just rinse and repeat. On bright side, Sears fixing lot of loop holes in the SYW program. I hope they close this one too.

 

;)

[Luke 532]

Here my concern: If you have SYW points, you can just rinse and repeat by just paying 1 cent cash along with points. I don't know how many people just rinse and repeat. On bright side, Sears fixing lot of loop holes in the SYW program. I hope they close this one too.

 

;)

 

Some will take advantage of the points and pay next to nothing for goods.  But with SHLD's ability to track which customers do that they can limit or completely take away points from the "smart" shoppers... or make them dependent on purchasing something (20% off, for example).  Tailored deals for each person will be a goldmine if this strategy works.

[tylerdurden]

Tale of a huge value destruction:

 

http://www.businessweek.com/articles/2013-07-11/at-sears-eddie-lamperts-warring-divisions-model-adds-to-the-troubles#p1

 

My favorite section about this guy (Eddie):

 

"And yet former executives in Sears’s digital group say that while some of Lampert’s suggestions were forward-thinking, he barraged the department with quixotic demands. Lampert constantly cooked up ideas: BlackBerry apps, netbooks in stores, and a massive multiplayer game for employees. He ordered the IT department to build a proprietary social network, called Pebble, which he joined anonymously under the pseudonym “Eli Wexler.” (An Eli refers to someone who attended Yale.) Lampert’s intention, former colleagues say, was noble: He wanted to engage with employees and find out what was happening across the company.

 

It quickly became clear that Eli Wexler was a little too engaged on Pebble. He left critical comments on other people’s posts, according to more than 20 former employees; he even got into arguments with store associates. Word got around that Wexler was Lampert. Bosses started tracking how often employees were “Pebbling.” One former business head says her group organized Pebble conversations about miscellaneous topics just to appear they were active users. Another group held “Pebblejam” sessions to create the illusion they were using the network."

 

Is there any reason to believe that Eddie Lampert will or can actually extract significant value out of the real estate holdings of this company for the benefit of the shareholders anytime soon? With sufficient amount of time, no real estate portfolio will be enough if you continue burning cash every single quarter?

 

Thanks.

 

[merkhet]

 

Is there any reason to believe that Eddie Lampert will or can actually extract significant value out of the real estate holdings of this company for the benefit of the shareholders anytime soon? With sufficient amount of time, no real estate portfolio will be enough if you continue burning cash every single quarter?

 

Thanks.

 

 

Yes. There's something close to 100 pages about unlocking the real estate value in this thread. Additionally, there's probably 30 or so pages about the turnaround at the retail level.

[tylerdurden]

I read some of the thread so far but it is somewhat sizable (570+ pages at this point) and full of various topics including details in terms of retail developments etc., which i am not very interested. To me this is purely a real estate play at this point. Thanks anyways. I'll keep on reading... 

[Patmo]

Tale of a huge value destruction:

 

http://www.businessweek.com/articles/2013-07-11/at-sears-eddie-lamperts-warring-divisions-model-adds-to-the-troubles#p1

 

My favorite section about this guy (Eddie):

 

"And yet former executives in Sears’s digital group say that while some of Lampert’s suggestions were forward-thinking, he barraged the department with quixotic demands. Lampert constantly cooked up ideas: BlackBerry apps, netbooks in stores, and a massive multiplayer game for employees. He ordered the IT department to build a proprietary social network, called Pebble, which he joined anonymously under the pseudonym “Eli Wexler.” (An Eli refers to someone who attended Yale.) Lampert’s intention, former colleagues say, was noble: He wanted to engage with employees and find out what was happening across the company.

 

It quickly became clear that Eli Wexler was a little too engaged on Pebble. He left critical comments on other people’s posts, according to more than 20 former employees; he even got into arguments with store associates. Word got around that Wexler was Lampert. Bosses started tracking how often employees were “Pebbling.” One former business head says her group organized Pebble conversations about miscellaneous topics just to appear they were active users. Another group held “Pebblejam” sessions to create the illusion they were using the network."

 

Is there any reason to believe that Eddie Lampert will or can actually extract significant value out of the real estate holdings of this company for the benefit of the shareholders anytime soon? With sufficient amount of time, no real estate portfolio will be enough if you continue burning cash every single quarter?

 

Thanks.

 

Haha, if that were true, it would mean Eddie Lampert turned bonkers. Pretty funny stuff.

[merkhet]

Something that I have been thinking about.

 

What keeps ESL from just selling off the Sears Canada shares? Why look for a buyer?

[Mephistopheles]

I imagine that with such a large stake it's really hard to do that without depressing the price, especially for a company in not so great condition.