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So instead of investing in actually making Sears better (like Target and Walmart did), he thought it was a good idea to spent nearly all of Sears' cash reserves
by MetalGuru 8y ago
So instead of investing in actually making Sears better (like Target and Walmart did), he thought it was a good idea to spent nearly all of Sears' cash reserves buying back its shares (at prices as high as $170)? Now shares are $0.33. Is he just an incompetent buffoon, or did this strategy line his pockets? For example, was he buying shares owned by ESL with Sears' money? If so, that's highly unethical. Seems par for the course with Wall Street.
- wavefunction 8y agoThis seems like standard operating practice for vulture capitalists (Bain Capital) that swoop in and extract the value from the firm before discarding its debts and bankruptcies and moving on to the next firm.
- DontGiveTwoFlux 8y agoI wonder if any company in a similar position has just done a total liquidation and turned over all cash as a one time super dividend. That seems like the honest and fair way of doing it. Though it's probably less lucrative than a debt-fueled stock buyback and dump strategy.
- hermitdev 8y agoI don't know about the rest of the country, but they had spent the last 2 years rebuilding their flagship store in Oak Brook Center west of Chicago. Last I was in the mall last fall, it was still under reconstruction. Probably far too little, far too late...