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Subject:  Re: Sears Date:  12/27/2011  1:16 PM
Author:  LeKitKat Number:  8760 of 25604

CNBC reports Sears same store sales fell 5.2% for Christmas AND they are closing 100 of 120 Kmart stores. We'll see how my bonds do today.

Somewhere up stream on this thread was a question whether the bonds or the equity were preferable.

SHLD sss have been declining for years and despite Lampert's efforts to improve the business he has failed. The share price is going to do what it did today every time the company disappoints. From comments I saw, the bonds stayed their course. The short duration, the discount and the high premium make the bonds interesting. Can Sears make it until 2017 is the question Maybe if Lampert keeps paring it back


"Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce ongoing expenses, adjust our asset base, and accelerate the transformation of our business model," Chief Executive Lou D'Ambrosio said.

Aside from closing the stores, Sears said it plans to focus on improving gross profit dollars "through better inventory management and more targeted pricing and promotion."

Sears, controlled by billionaire hedge-fund investor Edward Lampert, has faced criticism from some analysts and investors as it has sought to control costs by closing some stores rather than revamp older locations.

Citing the year's performance, the company said it expects that it will record a fiscal fourth-quarter noncash charge of about $1.6 billion to $1.8 billion because of a valuation allowance on certain deferred tax assets. In addition, the company said it may recognize an impairment charge on some goodwill balances for as much as $600 million.

Credit Suisse retail analyst Gary Balter was quick to blame Sears itself for its woes. "It begins and, some would argue, ends with Sears' reluctance to invest in stores and service, effectively asking customers to pay for a poorer shopping environment than available at competitors and online. We do not see how that will turn around."
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