Gary Balter
Gary Balter
above absent current earnings imply improvement level signals stock trades view
The stock trades above a level that we would view as appropriate for the current earnings that, absent signals of improvement or takeover, would imply downside.
believe cost improve improvement key
While we believe they are doing the right things to improve their positioning, the cost of that improvement is going to be the key near-term.
bull downside exciting greater maybe risk stay upside
While maybe not as exciting as some had hoped, the upside is still significantly greater than the downside risk and we stay in the bull camp,
asset date expecting leadership sales seen
We have been expecting Sears to play out similarly, but to date have not seen the asset sales or leadership that have characterized the other stories.
cap challenges discount faces large retail retailers
Sears faces significant challenges in the discount retail market, particularly from the large cap retailers Wal-Mart and Target.
beginning consumers keeping prices realize reducing retailers sales smarter wait
Retailers are getting smarter in the way they do business. They are reducing their inventories and keeping prices steady. Consumers are beginning to realize that they can't just wait for the sales like they used to.
attractive based believe buyer cash excellent flow industry job large management margins questions rating steps team turning view whether
Our outperform rating was based on our view that the management team was doing an excellent job of turning around the margins at this large industry player. The market's valuation at around 6 times cash flow we believe made this an attractive acquisition target. The questions now will be whether another buyer steps in.
begin board change christmas cons focus investment negative pros
It is not enough to change our investment opinions, but is a negative in the tally board of pros and cons as we begin to focus on Christmas 2006.
against best buy calm comment concerns earnings per positions quarter second share solid third
That comment should calm concerns that the first quarter could be down, and positions Best Buy for solid earnings per share improvements against the second and third quarters.
christmas given improved products year
Given the plethora of new and improved products that we should see this Christmas ... if there was a year to have a delay, this is it.
billion cash combined estate generating higher million provide support year
Kmart is generating well over $500 million a year in cash flow. They have over $2 billion in cash. That, combined with their real estate value, should provide higher support for the stock.
attractive liked stock trading
With the stock trading at these attractive levels, we would have liked to see more significant repurchases.
believe concern consumer continue push
We continue to believe that all of the concern over the discounters' push into consumer electronics may be overblown.
bothered continue growth light numbers positive propensity rates results shine
We continue to be bothered by the company's propensity to shine a more positive light on results and growth rates than the numbers may support.