In most cases, Sears has the highest operating costs of any retailer in their class. That means they either sell at higher prices or make less money.
just do not make the assumption that the prospects of SHLD as a retailer are horrible, that this means the stock will decrease in price. My feeling is that it is just the opposite. The worse the operating results, the sooner and more aggressive the retail asset monetization will happen.
agree - they clearly need to close a whole lot more than just 50 Stores. They will not really make much difference in the cash burn.
I think the risk might ultimately be in the Pension arena. While the PBGC has an agreement on ownership of the remaining assets to fund the pension - there may be no remaining assets/
think Eddie has done a masterful job on a 'tasteful and graceful' liquidation. Sears was toast anyway you cut it, but Eddie has prolonged this sure death in a masterful way. Will be a great case study.
the only thing that would propel the stock higher is an announcement about a large number of store closings - way above the 50 that have already been announced.
think the have about 72 straight quarters of negative comps. Sales have decreased from $48B to an expected $25B this year. This doesn't happen by accident - takes a lot of hard work from a lot of people
the activity is related to the prospect that more of the retail assets will be monetized quicker. Closing stores decreases cash burn and the operating losses.
Cruz is a right wing whacko that could not ever get anything done - it would just be 4 more years of stalemate like we have had for the past 7 years. And clearly, the last thing we need in the White House is a Jesus Freak.
a most 'tasteful and graceful' liquidation - and you are right, Eddie has done a spectacular job of keeping this dead man walking alive.