Tuesday, July 10, 2007
Darker Side of Sears Holdings' Stock Price
Sears Holdings Corp. is taking a beating on Wall Street.Don't fret, this is justifiable assault.
Today, the company said it's second quarter earnings would be down nearly 46 percent, paving the way for a dismal 2007.Investors are angry. The stock is down nearly 17 percent--a fall that comes despite major investor and company Chairman Edward Lampert's plan to increase the company stock buy-back effort by $1 billion. Lampert is a huge fan of stock buy-backs because it's a nifty way of giving shareholders (like himself) a large dividend without the tax consequences.
As stated here before, investors' love affair with this stock and Lampert is a mystery to me. So it seems like a good time revisit an earlier post on Lampert and Sears. Click here