JCP and Sears were walking in the jungle when they came upon a tiger. JCP began putting on his running shoes. Sears said to JCP, "Why bother with the running shoes, you'll never outrun that tiger." JCP replied, "I don't have to outrun the tiger, I only have to outrun you."
JCP only needs to outrun Sears, which looks pretty easy.
The amazing thing about Sears is that it shows no inclination to halt, or even slow, its downward spiral. It's as if someone who will benefit from taking Sears out of the retailing arena is in control.
Eddie at Sears might be interested in JCP out a court house bid in Chap 11. Of course he would be buying the debt cheap and the common of JCP would be toast then.
Eddie bought Kmart via cheap bonds and a favorable valuation in court....he then bought Sears and milking it.
Buffet would say he has the ability to find good "cigar butts"...get the last few puffs before they go out.
Sears is now the underdog and JCP is taking their customers and market share -- so true.
While it's trading more than 5X JCP's price.
Sears only managed to show profits so far by slashing overhead in employees and stores, and not improving the stores they kept but it can't keep doing that.
One way CEO Johnson blew so much money was renovating JCP stores so now they're generally very nice, a pleasant shopping experience while Sears is dumpy. Johnson also blew off the traditional JCP shopper.
Now shoppers are back, the stores are nice and JCP is doing better than its competitors.
The bears would like to twist it otherwise but this is IT for the bottom, going up from here.