News Why Sears Is the Worst Stock in The World

Discussion in 'The Howard Stern Show' started by DDragon, Aug 18, 2016.

  1. DDragon

    DDragon VIP Extreme Gold

    Reputations:
    50,200
    Joined:
    Mar 13, 2012
    Messages:
    7,262
    Likes Received:
    12,284
    Ignore the optimists who argue that Sears is a turnaround story and value play. Here are the gory details as to why this ailing retailer is doomed.

    Sears Holdings (SHLD) is not a deeply discounted "value play" that's worth a roll of the dice, as some analysts contend. It's investment kryptonite and you should run in the other direction.

    So far this year, as Sears shares continue to tank, the retailing sector has been leading the stock market rally. After a bumpy ride at the start of the year, many of the sector's legacy bricks-and-mortar retail stocks are now enjoying a good run. Year-to-date (YTD), Walmart (WMT) is up 19.61%; Macy's (M) is up 15.67%; J.C. Penney (JCP) is up 69.52%; Costco (COST) is up 4.48%; Michael Kors Holdings (KORS) is up 24.71%; and Target (TGT) is up 4.02%.

    [​IMG]

    The company that's providing fierce competition to these traditional retailers, e-commerce juggernaut Amazon (AMZN) , is up 13.70% YTD. The SPDR S&P Retail ETF (XRT) is up 6.29% YTD, compared to 7.47% for the S&P 500 (SPY) .

    As for perennial laggard Sears Holdings, the stock is down 14.11% YTD and it's likely to fall even further, especially after the beleaguered company releases its latest operational scorecard next week. Sears is scheduled to report second-quarter earnings on Thursday, August 25 and the results are expected to be ugly. No amount of lipstick can beautify this pig.

    The average analyst estimate is that Sears will report a loss of $3.48 per share, compared to a loss of $2.40 per share in the same quarter a year ago. Next quarter's loss is expected to come in at $4.50, compared to a loss of $2.98 in the same year-ago quarter. For the full year, the loss is expected to reach $12.45 per share, compared to a loss of $8.94 last year. For fiscal 2017, the loss is projected to hit $11.73. The torrent of red ink at Sears is relentless, which stands in stark contrast to a second-quarter earnings season that generally has been strong for retailers.

    Sad fact is, many investors are rooting for Sears, against their better judgment, because they've been holding the stock for years in their 401(k)s and Individual Retirement Accounts (IRAs). But the longer they deny reality, the more money they'll lose on this doomed equity. It's time to bite the bullet on Sears and call it a day.

    Sears' peers have struggled to cope with the e-commerce revolution, with varying degrees of success. Notably, Walmart last week announced that it would buy e-commerce company Jet.com for $3.3 billion.

    With a market cap of $1.88 billion, Sears is controlled by billionaire hedge-fund manager Edward Lampert, whose efforts to beef up the company's relevance have been weak.

    For example, Sears last year purchased the technology behind WallyHome, a smart device that gauges changes in temperature, moisture, and humidity, alerting homeowners about potential leaks. Sears licenses the technology for the development of future Sears Connected Solutions products. Last month, Sears unveiled a next-generation WallyHome sensor that allows users to monitor doors and windows.

    Sears also last year initiated a new program of in-store consultations for its appliance products, called "Meet With An Expert." This year, the company expanded the program to its lawn and garden products.

    The upshot: These efforts are too little, too late and they've done nothing to stem plummeting sales.

    Sears Holdings operates in two segments: Kmart (which merged with Sears in 2005) and Sears Domestic. In April, Sears announced that it would close 68 Kmart locations and 10 Sears stores this summer, leaving Kmart and Sears with fewer than 900 and 700 stores respectively.

    Kmart and Sears Domestic outlets throughout the U.S. sell a wide variety of famous brand names, including Kenmore, Craftsman, Coldspot, Penske, and DieHard. But despite its bevy of beloved brands, Sears has grappled with a sharp multi-year plunge in sales and shopper traffic, forcing it to slash costs and slough off assets to buttress its cash position. Comparable store sales for Sears have declined every year since 2005, with net losses reaching a total of $8 billion since 2010.

    Founded in 1899 by Richard Warren Sears and Alvah Curtis Roebuck, Illinois-based Sears began life as the Sears-Roebuck mail order catalog company and started opening retail locations in 1925.

    Sears is an American icon and its stock graces the retirement portfolios of scores of investors. However, the digital revolution has rendered Sears a dinosaur. Shoppers perceive Sears stores as outdated and unappealing in a world where you can buy anything and have it delivered to your doorstep with the click of a mouse. In a broader market that's risky and volatile, you need to take protective measures instead of taking a flyer on "bargains" like Sears.

    To be sure, the broader market is overbought and investors are desperate for bargains. But when the inevitable correction occurs, Sears will be among those fundamentally flawed stocks that fall the farthest and hardest. Stay away from Sears stock; it's heading to zero.
     
  2. DDragon

    DDragon VIP Extreme Gold

    Reputations:
    50,200
    Joined:
    Mar 13, 2012
    Messages:
    7,262
    Likes Received:
    12,284
    So why would anyone believe Sears could make a comeback ? I talked to younger people and they didnt even know it still exsisted. To me its as sure as any bet that Sears is done for.
     
  3. Tipsey Russell

    Tipsey Russell VIP Extreme Gold

    Reputations:
    123,514
    Joined:
    Nov 26, 2013
    Messages:
    10,934
    Likes Received:
    25,768
    I got a relative who works for them
    a store manager
    he just praying the place last a few more years before he retires and shit
     
  4. DDragon

    DDragon VIP Extreme Gold

    Reputations:
    50,200
    Joined:
    Mar 13, 2012
    Messages:
    7,262
    Likes Received:
    12,284
    I shop there occasionally and its never been busy for as long as I can remember.
     
  5. MadWoman777

    MadWoman777 Well-Known Member

    Reputations:
    34,647
    Joined:
    Mar 2, 2012
    Messages:
    3,795
    Likes Received:
    5,699
    They were done for years ago with that "softer side of Sears" campaign.
     
  6. DDragon

    DDragon VIP Extreme Gold

    Reputations:
    50,200
    Joined:
    Mar 13, 2012
    Messages:
    7,262
    Likes Received:
    12,284
    KMart is done as well. I think JC Penny can last a little more longer.
     
  7. Divorce Chicken

    Divorce Chicken white punk on dope VIP

    Reputations:
    139,133
    Joined:
    Jan 24, 2012
    Messages:
    14,144
    Likes Received:
    31,226
    I walked through a Sears yesterday: empty shelves and an empty store. You can get some good deals there, especially on appliances.

    Here's the sad part: Sears was Amazon before there was an Amazon. A giant retailer that sold virtually everything under one roof. They were so tied to their catalog and stores that they didn't make the jump to the Internet and now they're circling the drain.
     
  8. Gusbuss

    Gusbuss VIP Extreme Gold

    Reputations:
    45,690
    Joined:
    Jan 16, 2012
    Messages:
    4,000
    Likes Received:
    2,926

    You are right
    Sears used to have all breeds of AKC dogs that you could order from their catalog
     
  9. reno

    reno VIP Extreme Gold

    Reputations:
    323,104
    Joined:
    Jan 10, 2012
    Messages:
    13,694
    Likes Received:
    40,501
    I used to whack it to the bra and panty section of the Sears Catalog. Kids today have it too easy with the internet.
     
    Getoninja, x76, Lemmy and 3 others like this.
  10. Irish Joe

    Irish Joe Well-Known Member

    Reputations:
    7,504
    Joined:
    Aug 23, 2015
    Messages:
    855
    Likes Received:
    1,849
    Why would anyone invest in any department store at this point?
     
    AmericasJudge likes this.
  11. Bentknee

    Bentknee Well-Known Member

    Reputations:
    8,729
    Joined:
    Feb 8, 2012
    Messages:
    1,257
    Likes Received:
    2,121
    But they were terrible at packing them for shipping. every time I ordered one it arrived broken.
     
  12. Vincenzo69

    Vincenzo69 Well-Known Member

    Reputations:
    69,363
    Joined:
    Oct 23, 2015
    Messages:
    14,182
    Likes Received:
    17,823
    Pretty soon Walmart will be the only store left
     
  13. Divorce Chicken

    Divorce Chicken white punk on dope VIP

    Reputations:
    139,133
    Joined:
    Jan 24, 2012
    Messages:
    14,144
    Likes Received:
    31,226
    Target shareholders should be pissed. The got destroyed on their gender-bender pandering....

    Target to spend $20 million on private bathrooms after customer revolt

    Target Corp. said it will spend $20 million to add a private bathroom to each of its stores by next year, following customer protests over its policy allowing transgender individuals to use whichever restroom corresponds with their gender identity.
    Most of Target’s TGT, -0.89% 1,797 locations already have single-occupancy or unisex restrooms, but it will add the option to 277 stores by November and to about 20 remaining stores by March 2017, the company said Wednesday.
    Target’s finance chief Cathy Smith said the move is a response to feedback from customers voicing displeasure over the company’s bathroom policy. She added the customer discontent hadn’t had a “material impact” on sales. CEO Brian Cornell had promised to roll out family restrooms earlier this year and defended the company’s stance on diversity.

    http://www.marketwatch.com/story/ta...te-bathrooms-after-customer-revolt-2016-08-17
     
    Getoninja and Fatass like this.
  14. Donkey Patrol

    Donkey Patrol The Mouthy One Gold

    Reputations:
    64,243
    Joined:
    Jan 15, 2014
    Messages:
    3,691
    Likes Received:
    8,992
    Sears and Kmart both suck. Craftsman and Kenmore are the only thing keeping it alive
     
    marswillrule and Gusbuss like this.
  15. HelloCleveland!

    HelloCleveland! Well-Known Member

    Reputations:
    29,131
    Joined:
    Jan 5, 2012
    Messages:
    5,244
    Likes Received:
    5,190
    That's about the only thing I remember buying there in the last 20-30 years. Appliances and tools.
     
    wife is a whore likes this.
  16. Avery

    Avery Well-Known Member Banned User

    Reputations:
    133,878
    Joined:
    Oct 22, 2010
    Messages:
    44,521
    Likes Received:
    24,207
    Because it rhymes with queers.
     
  17. Avery

    Avery Well-Known Member Banned User

    Reputations:
    133,878
    Joined:
    Oct 22, 2010
    Messages:
    44,521
    Likes Received:
    24,207
    TeeDonkey and wife is a whore like this.
  18. DaTenses

    DaTenses Well-Known Member

    Reputations:
    17,520
    Joined:
    Dec 20, 2015
    Messages:
    3,115
    Likes Received:
    4,686
    You used to be able to buy a fully automatic Thompson submachine gun out of the Sears catalog too.
     
  19. playitagainfred

    playitagainfred Well-Known Member

    Reputations:
    15,435
    Joined:
    Jan 15, 2012
    Messages:
    2,821
    Likes Received:
    5,502
    last time I was physically in a sears store was to buy some spring time stuff for a craftsman mower (air filters mostly). it took the idiot at the register 10 minutes to figure out how to ring the thing up so I could pay. that was the last trip. the giant sears store here that was retail heaven when I was a kid is being bulldozed as we speak for a new Nordstrom Rack store anchored retail center. Sears wont be missed.

    [​IMG]
     
  20. wife is a whore

    wife is a whore Stripped of POTY for butthurting staff VIP

    Reputations:
    577,394
    Joined:
    Jan 15, 2012
    Messages:
    47,154
    Likes Received:
    78,972
    I stopped shopping at Sears when I couldn't be home at the delivery time for a lawn mower, so I called in and they basically told me, "We'll try again next week, when we are in the area again." I told them to just cancel it, and the broad was shocked. Not as shocked as salesperson was when I went to the store the next day for a cash refund. Drove across the parking lot to Home Depot, paid $100 more for the same damn mower, but talked the guy into free delivery. I was mowing my lawn by 10:30 the next morning.

    Since then, I have only picked over the store closing sales.
     
    Xent likes this.