With the roll out of the 60+ stores next year, and the fact that those stores should do a higher volume than the mall based ones, and the fact that the estimates were significantly lowered for next few quarters, I think if we see an upside momentum in the SSS and the Grand format, we could see a little Kohls growth within Sears stock..
I think 2005 will be pretty exciting for Sears. Lots of great initiatives are in place now and we'll see how they can harvest..
I also noticed that Lands End is now available on Sears.com
Accumulation phase means they could careless about the price, in fact they want it to go lower. They only care about the stock long-term. They are accumulating ownership from 12 to 13 and now 15 percent. When the stock hits 150-200 they may sell some or bump the dividend.
New stores when fully open are expected to do 20M in revenue. 60 stores is 1.2B or 3% more than current sales. Most of these stores won't open until Q4 next year so they will not be open the whole year. Sales at the current full line stores are decreasing by over 3%. No growth for Sears next year. Lower margins, lower sales and higher overhead means lower EPS. Even Sears has said they expect the acquisition to be dilutive to earnings next year. 60 stores is not growth when you have 2000 locations where sales are declining.
Let's see... Estimates being lowered is a good thing? Easy comparisons for SSS is a good thing? They have had 4 consecutive years of negative SSS that means they have had three consecutive years of easy comparisons and still have not been able to increase sales over the previous year.
Sears is already a 40 percent annual growth stock. And it is the best type of growth - buyback growth where you don't have to pay income taxes with it. Much better than actual revenue growth. Also S has the best price to sales ratio of any retailer. Thus $1 of investment will buy you $6 in sales. Compare that to $0.88 for Wmrt or $0.56 for kohls.
Thus with S you get 6X-10X the sales and 40 percent growth. You can stick your wmrt and kohl shares up your ###$@@.
I can write a little since I bought a tiny bit today.