I see there is a vast amount of emotional and disgruntled retail investors still stuck in this sinking ship. Even blockbuster and radioshack had small glimpses of hope before eventually declining bankruptcy. No different for SHLD. The titanic is definitely still sinking...just takes some time to do so. Short all you can folks. This is a no brainer.
Sears is selling appliances on Amazon.?! One more reason not to go to the Sears stores that are still open. Not sure how much this matters anyway, considering they were trying to find a buyer for Kenmore. Low margin appliance sales won't save Sears.
So, this guy from the Forbes article just nailed it regarding this Amazon deal.....it was a desperation move because there is no way anyone would pay anything for Kenmore.....despite Eddie's claims that its a very valuable asset.....here's the quote from the article... "Earlier this year, Sears fetched $900 million by selling the Craftsman brand to Stanley Black & Decker, one of the leading manufacturers and marketers of hand and power tools. So it's hard to imagine that Sears did not try to do a similar deal with either a manufacturer of appliances (e.g. Whirlpool or GE) or one of the now leading appliance retailers. The Kenmore partnership with Amazon appears to have far less value than the Craftsman deal, despite being done just six months later--which speaks volumes to how far Sears has fallen and for how weak Sears' bargaining position has become. The cash flow from the Amazon transaction will do little to mitigate Sears operating losses and downward trajectory. In fact, it seems to be mostly the best way, under desperate circumstances, to extract the remaining value of the Kenmore brand given that no high dollar suitors emerged and Sears continues its march toward oblivion. Amazon, however, is able to take advantage of fire-sale pricing and create the valuable option to have Kenmore as a potentially powerful future private brand to build its presence in the home category."
So let me see if I have all the current facts correct on Sears. 1. They couldn't pay back their $500 million loan due in July, so they paid $100 million it and pushed it back 6 months. 2. Eddie said they sold "$200 million worth of real estate in June" but has not said how many locations he sold and at what price? 3. After paying the $100 million of the loan they turn right around and go and borrow $200 million more? 4. Now they have announced a deal to sell their Kenmore appliances on their competitors website?
Did I miss anything?
Is next step Amazon acquires Sears and uses the real estate for distribution centers?
Official Sears bankruptcy pool:
Pick the date you think Sears will file bankruptcy. Whoever is closest wins.
Only people who continue to shop at sears are baby boomers who don't know how to work a computer. Even those people are catching on and shopping online. Sears is equivalent to the VHS tape. They can't keep up with the times. Short at will
I wonder what type of sick sexual acts sears CEO had to perform on Jeff Bezos to get this deal? What type of bozo comes crawling to their competitor that is putting them out of business to ask them to sell their product ?
The worst part about the Amazon deal is that the Kenmore appliances are going to be sitting there on Amazon's website where people can see the price and read the reviews and compare them to other brands. People are going to see how overpriced they are and how badly the quality has dropped without even leaving their house.
Don't understand why the stock is down 8% after yesterday's good news with Amazon
Another rabbit comes out of the hat.
Never, EVER bet against Eddie Lampert. He is a very smart multi-millionaire hedge fund manager with very deep pockets. Those who bet against him eventually lose BIGGLY!
Would someone please explain to me why I should consider buying this stock. It looks like it has fleas.
Some reminders for longs:
Since Eddie became CEO, Sears has lost about 80% of its value.
Currently, equity is negative which means the stock is essentially worthless. All of the assets are owned by debt-holders. The value of everything left over is less than 0. You don’t get dividends and you don’t own anything. All you get out of owning Sears stock is the right to say you own Sears stock and the hope that maybe you can find a bigger idiot to unload your shares on. Hope ain’t worth much.
Sears’ revenue is dropping at a rate of about 20% per year. Until Sears can generate a profit there is no hope of the stock ever gaining value.
After 4 ½ years as CEO, Eddie has not shown he can prevent Sears from losing money.
In fact, after 4 ½ years Eddie doesn’t even have a viable plan to make Sears profitable. If I’m wrong show me what it is.
Cash is a serious issue. Without cash you default on debts and when you default on debts you go bankrupt. Sears burns through 200M in cash every month. Three months ago they only had one month’s worth of cash. They only have 5B in liquid assets with 80% of that being inventory. The same inventory that’s been sitting on the shelves for years (because they aren’t buying new inventory). The amount of time Sears can last without selling long term assets (real estate and brands) is literally a few weeks. Long term assets aren’t liquid and they’re running out of them quickly.
Because of the cash issue Sears is having problems with vendors which could very quickly turn into empty shelves (and already has to some extent).
The coming months don’t look good for Sears. Earnings will be in August and based on what we’ve seen the last couple of weeks it looks really, really bad. Back to school sales are starting right now and Sears has not had the ability to stock up on inventory. Even if people show up there’s not going to be anything to buy. After that will be Christmas and Sears will have the same issue of not having the inventory they need. Then, the end of the year and the annual report will come out and people will see how bad this year has really been. I don’t see Sears surviving very long after that.
Sears is a national treasure. They just made a partnership with Amazon and saw their stock rise over 10%. The CEO is a brilliant tactician and the shorts will suffer. The demise of Sears has been greatly exaggerated. In fact, this is a comeback story. The stock was manipulated and the fake news media has been trying to kill Sears. Again, the stock will rise further.
I went to Amazon and searched "refrigerator". Neither Kenmore nor Sears came up.
Look for insiders to dump their shares. They want out before this goes belly up. One last go at this ATM
Selling on Amazon will have no impact on Sears. Others have tried and this market is already owned by other vendors. This bump in stock price is an absolute gold mine for the Shorts.
The supreme court case PEM Entities LLC v. Eric M. Levin & Howard Shareff could have a major impact on Sears. If the court rules that insider loans are equity, that means Eddie stands to lose a lot of money in a Sears bankruptcy.
I'm sure Eddie has thought about it. I'm not sure how he would react though. Does he try to force a BK through sooner than expected or does he take a gamble and go all in on Sears risking his entire net worth as well as Seritage.
If Eddie gets greedy and starts taking risks with Sears and the real estate, shorting SRG might be the best play in the entire market.
Red Wings Fan
Somebody, please give me a detailed answer as to why this stock isn't sitting on the pink sheets at $.03 per share?