StockFetcher Forums · General Discussion · SHLD - Sears<< 1 2 3 >>Post Follow-up
59 posts
msg #83149
Ignore medowz
11/16/2009 5:36:32 PM

For the fun of it I'm going to paper trade this: sell 1 Dec 75 call / buy 3 Dec 85 calls thinking the stock makes a big move up before DEC expiration. If it moves above 85, TOS says I stand gain about $350. Short term it says I could lose max $140 at expiration. It's paper, what the heck. Margin is 1075 per contract.

469 posts
msg #83225
Ignore straken
11/18/2009 1:22:41 PM

Sears Canada reported today

* EPS C$0.44 vs C$0.55 year earlier
* Revenue down 9.2 percent at C$1.31 bln
* Same-store sales drop 6.3 percent

Stock is up bout a percent, I've been wanting to play this one all week but could go either way. Me thinks I will just make a little wager on the Dec 65 PUTS unless I talk myself into a strangle. I do not think sears will have much of anything good to will key on guidance since next quarter is their big one. I'm looking for a drop after earnings with buying to pick up later this month.

469 posts
msg #83228
Ignore straken
11/18/2009 2:21:12 PM

I'm in the DEC65 PUTs Karen. I think the odds favor it, SEARS now running 3x normal sales adds, comercials and starting a few weeks earlier than years past. We will certainly find out in the a.m.

7,051 posts
msg #83229
Ignore karennma
11/18/2009 2:45:45 PM

Hmmm .. I don't know .. I may not bet on SHLD.
I wiped out almost 1/2 of my optionshouse acc't betting the WRONG way on AIG.
If a I take a "risk" ... I have to be right, otherwise, I'll just wipe out the entire acc't.
I think I'm just gonna pass.
Good luck to you guys!

( I noticed, my posts with my beloved "emoticons" are being removed)

2,817 posts
msg #83245
Ignore chetron
11/19/2009 6:55:17 AM

i thought something was missing. they did tend to brighten up things. = (

4,599 posts
msg #83246
Ignore Kevin_in_GA
11/19/2009 8:16:19 AM

Trading up +3.5% in pre market after earnings were announced.

Article on this here:

Sears posts narrower 3rd-quarter loss on cost-cutting efforts; sales continue to fall

On 7:51 am EST, Thursday November 19, 2009

HOFFMAN ESTATES, Ill. (AP) -- Sears Holdings Corp. posted a smaller third-quarter loss Thursday, combating customers' continued desire to spend money elsewhere with tighter inventory management and cost control efforts.

The news sent the retailer's stock up $3.23, or 4 percent, to $79 in premarket trading.

The company led by hedge fund financier Edward Lampert has struggled for years, with shoppers dwindling at its Sears and Kmart stores. But the retailer recently launched a major campaign to win over holiday shoppers -- with measures like its new Christmas Club cash savings card good at Sears and Kmart stores -- and capitalize on last year's successful holiday layaway program.

"As we approach this important selling season, we are focused on executing our holiday strategy and meeting our customers' needs," interim CEO and President W. Bruce Johnson said in a statement.

The owner of Sears and Kmart stores lost $127 million, or $1.09 per share, for the period ended Oct. 31. That compares with a loss of $146 million, or $1.16 per share, a year earlier.

Excluding store closing costs and other items, Sears said it lost 81 cents per share.

That beat the average forecast of $1.09 a share by analysts surveyed by Thomson Reuters. Those estimates generally exclude one-time items.

The loss was the second consecutive quarterly deficit as Sears lost $94 million, or 79 cents a share, in the second quarter.

Third-quarter revenue fell 4 percent to $10.19 billion from $10.66 billion. That also topped Wall Street's estimate for $9.92 billion in revenue.

The company did see some improved business, with sales at Kmart stores open at least a year up 0.5 percent. The retailer said sales of toys, home goods and footwear helped boost its performance.

Sales at stores open at least a year is a key indicator of a retailer's performance since it measures growth at existing stores rather than newly opened ones.

But sales at domestic stores open at least a year dropped 2.3 percent, with the Kmart increase offset by a 4.6 percent decline at domestic Sears stores open at least a year. The Sears dropoff was due to weaker sales in its home appliance, lawn and garden, tools and home electronics categories.

The company was able to buffer the softer sales results through cost control efforts and tight inventory management.

Total costs and expenses declined to $10.3 billion from $10.86 billion during the quarter. The retailer also lowered merchandise inventories to $10.8 billion from $11.4 billion. Domestic inventory levels fell to $9.9 billion from $10.5 billion, while inventory levels at Sears Canada dropped by $28 million.

The retailer improved its cash balance to $1.5 billion from $1.2 billion and lowered its total debt to $3.8 billion from $4.5 billion.

Sears Holdings has about 3,900 full-line and specialty retail stores in the U.S. and Canada. Lampert acquired Kmart out of bankruptcy in 2003 and added Sears, Roebuck and Co. in 2005 to create Sears Holdings, which is based in the Chicago suburb of Hoffman Estates.

469 posts
msg #83251
Ignore straken
11/19/2009 11:58:51 AM

Yes they did post a lessor loss on cost cutting, or claims to. There is nothing on their balance sheet that impresses me. I place fair value of the shares around 58.00 even with the patronage those shares get. My choice of the Dec PUTS were playing both earnings and market downside. I was able to pick up another 50 puts this morning @.70 on the Dec 65 put. Yesterday I paid 1.35
I'm still looking at seeing SHLD @ 65.00 before expiration. I will hold for now but leaving for the holidays next week. I think the market will too. Either way Monday I will sell as I'm not leaving anything on the table while I'm gone, no fun in whiteknuckle holidays.

I'm wanting to see RIMM hit 56 by monday. I'll be going for 60-65 Dec calls with conviction.

StockFetcher Forums · General Discussion · SHLD - Sears<< 1 2 3 >>Post Follow-up

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