Eddie Lampert has to come up with new apologies every quarter, it seems. Sears Holdings, which I wrote extensively about when the Motley Fool was teasing it as their best value investment, continues to fall. Disappointing earnings have brought the shares down to $85, after the Fool touted them as hugely undervalued and Lampert as the next Warren Buffett when the shares were at $100 in February. And let’s not forget, the shares seemed to be pushing inexorably up to near $200 just a year ago.
I still think betting on a turnaround at Sears is a mistake, and there’s little chance of monetizing what value there is in the company if they insist on reinvesting all their money in buybacks instead of into the (so far nonexistent) stable of other companies that many of us expected Lampert to build around Sears (a la Berkshire Hathaway, which long ago lost all relics of those textile mills that Buffett used to start the business) — but there are, it must be said, still plenty of folks who disagree with me.