I remember on these boards when we were shocked at the stock falling below $9 now it’s heading quickly to below $1. Remember last year when fast Eddie was providing his loans every few months? Where are theses sums now? The cash reserves are all gone, there is nothing left. Forget talk about surviving until Xmas, my money is on our company folding in the next 30 days
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@UEUcLuG-1qvj: Why dilute? Because it will give Eddie full control of everything. He would buy up the new issues of SHLD stock, which would devalue the ownership stake of everyone else. If there is opposition against the sale of Kenmore, no one will be able to stop Eddie from buying it.
Why dilute the stock?
@UEUcLuG-1aaa online sale is revenue, not profit. If they sold goods online $2B and profit margin is 10%, for example, that will be $200M profit.
So by the number given if online sale is targeted for $2B per quarter then the current SYW online sale is less than $8B per year. Not that much of a revenue compared to the total revenue of the whole of Sears.
Yup. It smells like a stock dilution scam to me.
What Eddie is doing is called, "Stock Dilution."
https://www.usatoday.com/story/money/2018/08/14/sears-eddie-lampert-esl-kenmore/992719002/
In one paragraph, Eddie made a stunning admission that Sears is running out of cash: "In Tuesday's letter, disclosed to the Securities and Exchange Commission in a public filing, Lampert also proposed that Sears sell stock to lower its debt and "alleviate its liquidity challenges."
SHLD stock price at Aug 15, 10:11 AM EDT 1.69 USD −0.14 (7.64%)
This is NOT fake news.
Cash on hand was $318 M COB 8/10/2018. And yes, I work at HE.
@UEUcLuG-1ebw "The goal is to spend this amount to bring in around $2B of online sale." Ahahaha, yeah....don't think they're going to even come CLOSE to making $2 billion.
Sears has $140M allocated for ads next quarter. $70M of those will be given out in points for SYW "members". Piling good money on bad business model is tragic if not stupid. $20M will be on social media ads. Not sure what that is, maybe a Kim Kadasian's cut? The rest will be traditional ads like TV or print. The goal is to spend this amount to bring in around $2B of online sale. I don't know what is retail profit margin is supposed to be. Should they just keep the money and declare that they saved $140M during next earning call?
@UEUcLuG-lud I think they have cut the wrong people thats the biggest issue here. I have seen people from SST be very limited and yet I walk through mattresses at times and they have like 2 or even 3 associates standing around doing nothing, very slow and just chitchatting. Instead of giving those hours to people that need it to keep work flowing. Same applies to appliance. I have seen them say code one to clothing and just because I know the softlines are busy I would go and see what. Its something so simple if we had more stuff in the back. Couldn't the appliance associate just call a softline and ask instead of making them walk.
I can go on with the upper management where some of those should also get cut. Why not get management involved in the store? I have heard my store manager boss the supervisors to tell to the associates to do something productive. He really cant say that directly to the associates lol useless store manager I tell you. Or he walks pass a cashier long line he just calls in for a code 3. Like really he can't open a register and ring people up himself. Hes someone that should of been cut years ago.
Retail companies have NEVER cut stores to grow. Period.
Sears has hardly been running it's stores "full steam".
Pfft you have to make cuts to survive. How long do you think your company could remain running while paying for all its stores running full steam? Saving sears has been a lost cause for years. It’s only been about surviving for as long as possible. It’s been obvious for years. It was obvious back before I found my new job years ago. It’s even more obvious now.
Drive to near zero to justify more seritage sales.
Cut staff which cuts sales which cuts inventory. Keep repeating until sale at crazy low price is justified. This time with buffets money. Eddie smart crook
Things have been very quiet I mean I don't know if they are waiting for 2nd quarter results. Also I remember reading (this was in July) that the company had cash reserved until the ends of August. Is Eddie done with loaning any money? Maybe their isnt anything for him as of now to continue going honestly.
Yeah he is more about trying to "extend" the loans now more than throwing his own money into it.