Make sure to watch CNBC where Jim Cramer will tell you Sears is a buy for the 15th time in the last five years. Cramer was calling Sears a BUY at $160 in 2007. BOOYAH!!!
His Goldman Sachs butt buddy Eddie Lampert continues to work his magic. He has managed to lose $4.5 billion in the last two and a half years. Let me remind you that the economy has supposedly been improving during this entire time frame. Their sales are on pace to finish $6 billion below the level from two years ago. Their gross margins are plunging as they slash prices to move inventory. 17% of their assets are worthless intangibles. 30% of their assets is property that declines in value by the day. 40% of their assets is inventory that no one wants to buy. They have $7.5 billion of long-term debt & pension obligations, with only $2.8 billion of capital left. Their comp store sales have fallen for the last 10 freaking years. They are on a slow train to palokaville.
Sears operates 3,357 Sears and Kmart stores in the U.S.
JC Penney operates 1,107 stores in the U.S.
You may have noticed these locations during your travels through suburbia. They anchor just about every dying mall in America. These two retail Titanics have already hit the iceberg. They are taking on water. Their captains haven’t admitted they are going down. But their demise is certain. A watery grave awaits. There will be thousands of vacant shells in a mall near you over the next couple years. How long can the Wall Street banks pretend that real estate developers are not in default on their loans? This Ponzi scheme will collapse as soon as the moron CEO’s of these two pieces of shit announce the mass closings.
The destination is certain.