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

Lampert's Sears Still Has Turnaround Options

Given all that, a source said at the end of the day Lampert is no Carl Icahn, willing to declare victory and walk away, after reaping huge profits from his investments in Sears and Kmart. Lampert believes he can still make more money, as he has a few more tricks to play at Sears, and hopes to ultimately have a decent ending and not "screw" everyone over, including Sears' creditors.

Rob Schriesheim, Sears Holdings' CFO, said in a March 24 blog post on the company's website that the company's poor performance should not be equated with a lack of financial resources.

"We have the benefit of a flexible capital structure: our $3.275 billion domestic credit facility is in place through April of 2016 and we have no significant term debt maturities until late in 2018," he wrote.

He said that the company has $18 billion in assets on its balance sheet, including a real estate portfolio that has an "accounting value" of $5 billion. Schriesheim also said in the post that Sears Holdings had $885 million in availability on its revolver, and is allowed to raise up to $760 million in second lien debt.

Must Read: KKR, Blackstone, Apollo Are the Best Growth Stocks in Financial Sector

As of Feb. 1, Sears Holdings had nearly $580 million in cash and cash equivalents, while Sears Canada, a unit of which it owns 51%, had cash and cash equivalents of about $450 million. Secured short-term borrowings were about $1.3 billion, while the retailer had only $9 million of unsecured commercial paper, also as of Feb. 1. Sears has total debt of about $4.2 billion. Long-term debt was nearly $2.6 billion and capitalized lease obligations were nearly $350 million.

Sears declined to comment on its commercial paper situation, as well on the issue of whether it might consider a Kmart spin off.

3 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
SCC $40.58 0.45%
JCP $9.03 -3.11%
M $38.68 -2.05%
SHLD $14.72 -4.97%
AAPL $94.19 -1.04%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs