Sears is a viable Bankruptcy candidate

Damn...gotta be a way to make money trading that from the long side.....need to start looking at some pairs to trade it with.


For the new guy in the back of the short bus... how do you avoid the cost of shorting by trading pairs?
 
Quote from bond tr4der:

I can't wait to see all the mega malls go extinct. They're so bland and non-cultural. :D
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Damn! What will my friends and I do on weekends? We ain't gonna go to no art gallery nor frickin' museum! :mad:
 
Quote from mschey:

Damn...gotta be a way to make money trading that from the long side.....need to start looking at some pairs to trade it with.

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Not to take advantage of the enormous short rate as an individual trader. The ones able to take advantage of that is think SUSQ, GS, MER, etc. But you have to think about it and you have to have more than a cursory understanding of how brokers work.

People don't realize, the most lucrative thing about being a broker like GS or MER, is to take advantage of IR opportunities like this. That is why if you comb through their 10K/Q, you see their "prop desks" are almost always making $.

nitro
 
"Sears hasn’t “made the investments that would cause consumers to start coming to the stores more, and on top of that, the economy’s causing everyone to spend less in general,” Jones said. "


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"While Chairman Edward Lampert has downplayed the importance of revenue growth, the Hoffman Estates, Illinois-based company now has little else to fall back on to boost cash flow. Sears faces a loss of $44 million, or 38 cents a share, excluding some items, on sales of $11 billion when it reports third quarter results Dec. 2, according to a survey of analysts by Bloomberg.

“We’re definitely arriving at a point when some people will make the argument that the steps not taken before are logically leading to the operating losses that are building up now,” said Richard Hastings, a consumer strategist at Global Hunter Securities LLC of Newport Beach, California.

More than three years after Lampert’s Kmart Holding Corp. bought Sears Roebuck & Co., the 46-year-old chief still hasn’t revived revenue growth at the largest U.S. department-store chain. The combined company has seen sales drop at stores open at least a year in every quarter since the acquisition. "
 
My local Sears is one of the few stores I can take going to, because they keep the music low and the staff is very helpful.

I bought a gas grill there last year and they talked me into applying for a Sears CC in exchange for a discount. I pay my balance in full every month, so it is not an issue for me, but when I looked at the interest rates they were charging people who do not I thought it was abusive.

It lowered my opinion of the company as a whole to see them doing that.
 
Quote from mschey:

Damn...gotta be a way to make money trading that from the long side.....need to start looking at some pairs to trade it with.
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the way to take advange from the long side is you buy Single Stock Futures and get to buy SHLD at a big discount. if you are right you just boosted your returns by 10% or so
 
Quote from krazykarl:

IMO, these "big box" retailers are done for. I think the market is going to return to the local shops, smaller appliance stores, etc. Best Buy, Home Depot, etc. are a hallmark of over-consumption that is coming to an end. Short them all.
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I hope you are right!
 
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