Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Eddie Lampert

The Death Spiral

Sears is suing Lampert and the US Treasury Secretary

Thus, circumstances support the lawsuits allegations that Lampert and other insiders were conspiring to strip Sears of assets. The stripping allegedly includes hundreds of millions of dollars in rent and leases Seritage charges Sears.

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The Death Spiral

Is McDonald’s the New Sears?

This makes Sears and McDonald’s the opposite of value investments, because you will lose money with them. Stay away from Sears and McDonalds they are great American brands doomed by greedy and perhaps incompetent management.

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The Death Spiral

Is the End in Sight at Sears?

It looks as if Sears is close to death and a chapter in American retail history is about to end. We are now living in the age of Amazon and many brick and mortar retailers are doomed.

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The Death Spiral

This Retailer is worse than Sears

Every store with the name Sears on it might be history in the very near future. One of the legends of American retail is about to die. One has to wonder if anything named Sears can make money in today’s world.

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The Death Spiral

Sears Investors are about to get Burned…. again possibly by a Kmart REIT

Investors need to say away from a potential Kmart REIT like anything Lampert touches it will lose money. It looks as if another group of investors are about to get burned by another lousy Lampert stock.

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The Death Spiral

How is Sears Staying in Business?

Sears stockholders had better sell off fast because the final round of the Sears death spiral seems to be beginning. It’ll be a miracle if Sears survives 2017 without bankruptcy or liquidation.

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The Death Spiral

Sears the Agony Continues

Just to remain viable as a retailer; Sears would have to close 43% of its stores or around 300 locations, Green Street estimated. That figure might be optimistic because of the loss of consumer confidence in Sears. There is no evidence that customers would return if Sears shuttered a bunch of money-losing locations.

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The Death Spiral

Kmart has Lost 67% of its Business in 15 Years

The revenue figures show us that Kmart is now smaller than Dollar General (NYSE: DG). Dollar General reported a TTM Revenue of $19.31 billion on April 30, 2015.

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Market InsanityThe Death Spiral

Seritage Will Not Help Sears Avoid Death Spiral

One also has to wonder what Seritage investors are actually buying. Seritage purchased the properties from Sears for $2.72 billion, yet it only raised $1.6 billion through the IPO. It is unclear how it will generate revenue because all but 11 of the properties it owns are leased back to Sears, a company that’s losing $2 billion a quarter. There’s no guarantee that Sears will be able to cover those lease payments.

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The Death Spiral

Just How Bad Is the Retail Apocalypse Anyway?

The social, political and economic consequences of the retail apocalypse will be immense. It will change America in ways we cannot even begin to imagine. One has to wonder how much longer this will continue until it produces some sort of civil unrest.

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