Is Jim Cramer Crazy ?

[billyjoe]

For several months Jim Cramer from the Mad Money TV show has been touting SHLD. After a nearly 10 drop today he says it is a "gift" at 171. If you'd roll a bowling ball down the aisle of your local Sears store, you're much more likely to hit an associate rather than a customer. Cramer says that doesn't matter. Analysts are looking at the company compared to other retail businesses and it isn't merely a retail store. With each of it's nearly 3900 full line and specialty stores in the U.S. and Canada averaging 300K profit per year and virtually no debt owner Eddie Lampert is making this into a mini Berkshire Hathaway , investing the profits in other enterprises to earn 100mil. last quarter alone. He's over 1/3rd of the way in buying back nearly 1 billion in company stock. Cramer considers Lampert the greatest investor of our time and the only one that matched his returns in Cramer's hedge fund days.

Does Cramer's argument make sense or has he gone over the edge? I don't like Sears myself. Maybe it isn't about the retail business after all.

Cramer has been recommending SHLD since 9/8/05 at 127.81 it dropped as low as 113.92 and reached a high of 182.38.

-----------billyjoe

[Websman]

He's crazy....

[spikefader]

Good question billyjoe.

The fuzzy in this chart suggests looking for a 4 down long entry.......Maybe a dip to 155 would be very very tempting for a ride on the impulse bull.......maybe he's not 100% crazy.....just 99%....:D
http://img301.imageshack.us/img301/8962/2584jd1.gif (http://imageshack.us)

[IIC]

Cramer even convinced my wife that she should buy 1 share...However, as I recall he's talking about a very long term ride on SHLD.

As Billy, I don't like the store...Of course I really don't like to shop period.

But diversification is probably the key here...Can they become a conglomerate? I don't know...But if Cramer's right we'll probably hear my wife call in on his radio show thanking him w/ a BIG BOOYA in about 20 years...Doug

[mimo_100]

I returned a leaky, 22 year old garden hose this summer. The salesperson said to pick out a new one, and there was no charge. I returned a screwdriver a couple of years ago. Same result. I buy all my tools from Sears "on sale".

[skiracer]

I returned a leaky, 22 year old garden hose this summer. The salesperson said to pick out a new one, and there was no charge. I returned a screwdriver a couple of years ago. Same result. I buy all my tools from Sears "on sale".


I love Ohio State over Michigan. I'm laying the points. Ohio State should crush Michigan who in my opinion is much overrated.

[billyjoe]

Ski,
I agree. Unless Ohio State really screws up and plays the worst game of the season. Unfortunately for Mich. Ohio State's QB is known for playing his best against them. One thing to watch out for. In the past whenever one of these teams was a strong favorite such as in 1969, the other team pulls off a major upset. I'll take Ohio State by 14.

----------billyjoe