Check out the one year chart of Nordstroms, Sears Holdings, J.C. Penney, and Macys. How dare a comparsion be done with such best of breed retailer?
Just take a look at the headlines:
Nordstrom 3Q profit rises 22 percent
Macy’s Nov. same-store sales up 13.4 pct
JC Penney “overweight,” target price reduced
Sure, SHLD retail operations is underperforming, same store sales are down, and EPS is down from 2006, but what’s Nordstrom’s excuse? The Nordstrom’s brothers have been buying shares back like crazy (over $1.5B shares), sold off a division (Faconnable), and are considered best in class retailers. I have yet to come across the “doomsday Nordstrom’s” article.
With over $50B in revenue, SHLD is far from dead.
Bill Ackman, the investor who made the greatest subprime call of 2007, own 5 million shares.
During the last 13-F filing, there were more institutional buyers than sellers of SHLD stock.
Bruce Berkowitz, one of the most respected value investors, increased his SHLD stake over 200%.
Eddie Lampert is just a regular guy who works hard and his entire net worth is in SHLD. Warren Buffett also says to look at an executive’s compensation to find out if they are trustworthy.
Warren Buffett aggressively bought up BNI shares at $85. No one calls him an idiot for buying additional shares for $76. Why fault SHLD and their buyback efforts? Buyback are planned well ahead of time, not intraday decisions.
