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Subject:  The value of Kmart Date:  6/8/2004  4:04 PM
Author:  kitkatklub Number:  30979 of 46904

Kmart filed Chapter 11 in January 2002 and emerged in May 2003. It was a retail chain that could not compete against Walmart and Target and lost ground steadily. Since May 2003, the stock price has quadrupled and we have James Cramer calling Kmart the next Berkshire Hathaway. Where is all the value coming from?

Jim Cramer :
You are going to laugh at what I am about to say. You might even laugh out loud and think that I have lost my mind. But by the time you finish reading this, you will stop laughing, and you will buy a stock that you thought of only as a laughingstock, so to speak. You will thank me when you see me and marvel that some story in New York Magazine got you in on the ground floor—as you always hoped could happen—of the next Berkshire Hathaway.
But let's get the laughter out of the way first, because I am not about to bury the punch line: This is a story about how I want you to buy Kmart—yes, the worst retailer extant in America. I don't ask that you shop there first, although a little spadework of that sort might open your eyes to the possibilities. I don't ask that you suspend all judgment: Yes, Wal-Mart's a predatory competitor and Target's a lot more fun to shop at than Kmart, and might always be. All I ask is that you consider that Kmart, the reconst