This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer: Why Is Sears So Hated?

It is time to speak the truth about Sears Holdings (SHLD). All of the disaster scenarios did not come true. All of the stuff on TV and in the press about what was supposed to happen -- a true debacle -- didn't happen.

In fact, the opposite.

Now, I want you to put aside a couple of negatives: Eddie Lampert, a friend, who runs the company, should not have bought stock all the way up. That was a mistake. He admits it.

Put aside the fact that the stores may not be what you want to shop at. I have a nice one, but it is often empty. Forget for a moment that Lampert "missed the window" of selling lots of real estate at higher prices.

But let's look at what is happening here. Sears made money in the fourth quarter. In fact, it made pretty much what it made last year. HOW MANY RETAILERS CAN CLAIM THAT?

Second, the debt that everyone was so worried about? Read the release: "We repaid all borrowings under our revolving credit facility as working capital needs declined as expected." That's what Eddie expected. It is not what the bears expected.

Third, sure the comps are down. But so are everyone else's. Yes, sales were boosted by "layaway" plans. But that's like a credit card, for heaven's sake. We accept the notion of credit cards, don't we? Comps may be down, but so is inventory. Impressively, actually.

Fourth, all of this was done before the rationalization of the store base. It took a while -- longer than I would like -- but Lampert is now ready to start closing underperforming stores. What would the comp stores look like without the bad ones? I bet substantially higher. Same with the overlap between Kmart and Sears.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ANN $44.89 0.00%
TLB $0.00 0.00%
ANF $26.71 0.72%
BX $31.00 -0.26%
FIG $5.57 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs