Gary Balter
Gary Balter
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.
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.
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.
believe concern consumer continue push
We continue to believe that all of the concern over the discounters' push into consumer electronics may be overblown.
company discount flat gross margins near quarter reflection sluggish term transition trends view weather
While every quarter is important, we view AZO as a company in transition and would discount flat comps or sluggish gross margins as more a reflection of near term weather trends than a concern.
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.
announced believe changes management michaels plus
Michaels announced management changes that we believe will be a plus to the story at this time.
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.
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.
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.
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.
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.
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.