Gary Balter
Gary Balter
announced believe changes management michaels plus
Michaels announced management changes that we believe will be a plus to the story at this time.
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.
apparel appliances consumer given light links nap nice section store weak
The two weak links in the store are apparel and consumer electronics. One could have had a nice nap in the consumer electronics section given the light traffic. Conversely, appliances were buzzing.
cash continued growth higher lack point prices store
Their lack of investments in systems, continued new store growth by Wal-Mart and higher prices point to short-term cash maximization, not long-term growth,
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.
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.
cash deal investors looking seems strange
At first glance, this seems like a strange deal as investors in Sears Holdings are looking for cash generation, not new investments.
benign best cycle environment finally looks product stay
These are the best of times for Best Buy. The product cycle is finally here, the competitive environment ... is benign and looks to stay that way for the foreseeable future.
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.
commercial competitor despite drivers earnings executing faces footage improve investors looking margins operating remind results retailing sales slowing square strong
Despite the macro concerns, today's strong results should remind investors that Lowe's is executing as well in retailing today, has some significant sales and earnings drivers in installed sales, commercial and distribution, and faces a competitor that is slowing square footage and looking to improve operating margins in its core.
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.
budget budgets core drives gets microsoft office product spending supply time
If Microsoft gets the product out in January, that would still be in time for the new budget spending that drives many mid-to-small businesses, the core of the office supply segment.
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.