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Goldman Lowers Sears Price Target From $43.00 To $30.00, Reiterates SELL
As we said yesterday when Sears decided to very unprudently (if very conveniently) post an update of its revolver in its horrendous preannouncement, the company is about to experience some MF Global style "death shorting" having invited every short from miles around to sniff at just how (un)stable its liquidity is. Judging by the action in the pre-market session, where the stock is another 4% lower, we may have been correct. And just to make the lives of key shareholders Eddie Lampert and Bruce Berkowitz even worse, here is Goldman cutting its price target from $43 to $30, while still maintaining a Sell. Alas, this name is going far lower.
And, as a reminder, the biggest losers:
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Getting shares to short ain't easy?
Reggie has them all, he's been waiting patiently for this trade and RIMM. Took a year of people shitting on his idea, which was sound in reasoning, but like most of us the governments of the world wanted to "add value" first with taxpayer funds.
So here's my analysis of Sears.
SHLD will end up in OTC/PINK sheet. My price target in five years is $1.56....maybe if it doesn't simply cease to exists along with it's market, the middle class.
Unless the government bails it out, which is a possibility because of the Credit facilities Sears extends to their customers.
Eddie Lamprey = piece of s*it.
I see his pal Bruce Berkowitz owner of the Fairholme Fund owns this dog sh*t stock. I hope they both ride it down to the dirt. I feel sorry for the emplyees at Sears and KMart. Eddie is a asset stripper pirate.
Wait a second. SELL recco's are as rare as hen's teeth. And, this is Goldman talking here.
Does this mean that Sears is really a BUY??
Or do the PTB want to kill Sears?
Seared.
Solid as Sears.
Solidly Seared?
Is that like very very well done?
I think searing indictment works well too. A searing indictment of the retail sector in general and big retail in particular.
Wonder what the $30 price is backed by, inventory? Land? What they got that can liquidate to even a fraction of the $30? Hollow shells, literally and figuratively.
ori
/the-plan/
Agreed,
But surely Sears were 'imprudent' and not "unprudent" ?
Perhaps the Bull at the top was impudent? Or unpudent?
ori
Always short porcelain when the proverbial bull imprudently enters the china shop.
J ;-)
The idea of annonouncing 100-120 Store closings 2 Days after Christmas Doesn't really instill confidence among investors.
"100-120 Store closings "
Has there been any amplification as to which stores are to be closed - or what criteria will be used? There are two small Sears retail businesses within 40 miles of where I live. They will be missed. Craftsman Tools are still my favorite. As far as K-Mart, I haven't seen any around me in ages. I did see some last week while visiting the in-laws in Hampton Roads, Virginia. They didn't seem to be too overrun with shoppers though.
Thanks Called market timing Goldmanites¡
I prefer to tell people to Short STARBUCKS...which is completly expensive vs expected world wide scenario...
SHORT SBUX target 38
Ups, im not in Goldman Sachs, sorry...
Some anecdotal evidence for you.
Am in Poland currently and SBUX has slowly been creeping up on the Poles like a sly Soviet. Last time i was in Warsaw ~10months ago there was a single one in the Old Town, an exclusive part of the city. A few richer locals would go (latte costs around PLN14, whereas min wage is PLN12/hr ive been told) so a *bit* out of the population's px range. Mostly tourists and out of towners would come in for their brew.
Today, walked by 3 - all within the financial district of course - with huge signs of 'were hiring for our other Warsaw locations' shown.
Also remember, its a franchise, so much easier to generate CFs in that format and much less risk for the parent, SBUX Inc, to make money and have less at risk in case a particular location doesnt go ideally as planned.
Do i love starbucks? Heck no, much prefer some Canadian equivalents... but just throwing this out there on a financial perspective which does not tell me the market is saturated, especially with CEE countries becoming richer thanks to their Eurozone independantness as opposed to WE becoming a shit hole thanks to the PIIGS.
When did GS change their outlook on SHS to Sell?
OT: Kinda not fun day without the MBA App Index :( Well at least there's this nifty chart to keep me warm this week. 1998 levels FTMFGlobalW! http://4.bp.blogspot.com/-gaHgHOsTn_k/TvHO5XRScbI/AAAAAAAALos/WSDRc5o_Tao/s1600/MBADec212011.jpg
Short it for some Sears Woe-bucks.
why would you want to be long or short this market? unless you are sucking Brian Sack
I don't know about recently but Cramer loved this thing for years and pimped Eddie Lampert as the next Warren Buffett....
neighbors and butt buddies
Horse, barn door, thanks GS.
Every retailer that sells goods to the American consumer is going to get crushed. When the dollar dies, no longer will be the days when the US was able to fool the rest of the world into shipping us their goods in exchange for pieces of paper.
TheSilverJournal.com
the DOW JONES IS OVERVALUED...ENTIRELY
LOL.
The caps give away your impatience/frustration;0
PPT.
Im completly frustated ,resignated vs algos...
Just look SP , oil since 20th december.... Rack Rack Rack up,like a olympic medalist climber....
I can´t justify oil from 93 to 102....of course this is trading, but in a world which recession gonna be evident and depression is just behind us...oil with all my respects is also expensive.
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IM CAPPED:)
Have a good 2012 Gene,
Thanks. Same to you.
I suggest you find a big trade, take profits, move to Andalucia and forget the S&P ever existed.
Sure as heck is. Look at the chart from 1970 to the present.
It seems Lamperts goal was to run the co. into the ground. No'one could run a co. that bad unintentionally.
Sears' business model was old and outdated. I don't know if anyone could have saved it, unfortunately....
Eddie is destroying and bankrupting Sears while Obam is destroying America. I bet Eddie voted for him. The tribe love O.
Talk about calling the fall after the splat.....
Tayler what is Fairholmes top holdings?
I smell a trap. Lampert's a Goldman alum. Good luck, though!
Mark
I was thinking the same...as much as the brand et. al. is doomed, it is very very oversold...i mean 10 up days in the last 3 months?
but fuck..let's give GS more bonus for calling it so well....just brilliant timing....as always.
And of course we can't leave that go without Ackbar...
http://www.youtube.com/watch?v=dddAi8FF3F4
Hindsight is always 20/20.....
to Eddie Lambert from Nelson on the simpsons...
"AH-HA!"
you couldnt manage yourself out of a paper bag if both ends were open.....seeing that shit a mile away.
When Lampert bought into Sears it was supposedly for the "real estate" value. Whatever happened to that? He could still take those Sears in the malls and turn them into low income (senior?) rental housing with a little help from Congress. That'd be a new twist on eminent domain and folks could step out and shop their SS/welfare checks right there.
When Goldman says "Sell and then Sell Short" on day 1, I go long on day 3
Death spiral starts at the open. This is what you get when you let a hedge fund manager run a retailer. You get the stubbornness of a trader combined with knowing absolutely nothing about the business you are supposed to be in. End result is shareholder destruction. Sears goes the way of International Harvester and others that had no clue.
http://vegasxau.blogspot.com
From the ORIGINAL Karate Kid....
"GET EM A BODY BAG!"
lol.....NOBODY DESERVES IT MORE....NOBODY.
Would be sad to see Sears go under. it's a piece of Americana, a piece of history. their catalog was a real resource for many rural americans, to receive otherwise unavailable semi-necessities via the parcel post. a stark reminder of better times in the USA.
sad to see it go......sniff....... :(
Thank you Captain Obvious Goldman Sachs...
When a company is in trouble, the vultures start circling. Goldman just happens to be the lead vulture. Let us not forget that they have their dirty laundry hanging out in the breeze, too.
http://georgesblogforum.wordpress.com/?s=The+Daily+Climb
But, but, but ... havent you guys always been preaching to do the opposite GS does? Doesnt that mean they are actively engaged in buying the crap?
So lets upgrade it to strong buy, with a price tag of 90. Its your common advice mentioning GS recommendations, so please hold your line.
But, but, but ... havent you guys always been preaching to do the opposite GS does? Doesnt that mean they are actively engaged in buying the crap?
So lets upgrade it to strong buy, with a price tag of 90. Its your common advice mentioning GS recommendations, so please hold your line.
C'mon Eddie... teach 'em the fundamentals. Lampert & RBS could be making a fortune if they'd bit the shorts at a nice Halloween 80. Maybe Eddie could get his insurance to make up the difference.
OMG, did someone piss on the GREEN SHOOTS? Where are the fucking green shoots!!!
Sears needs to spin off it's Craftman brand and close up shop.
"Sears needs to spin off it's Craftman brand "
You mean let somebody else sell Craftsman tools? Like Ace?
http://www.acehardware.com/family/index.jsp?categoryId=4339735&sr=1&orig...
What about Kenmore? That is also a highly respected name in appliances. Has been for years. Yeah, yeah, I know that most of their appliances are built by others such as GE and Frigidaire.