Sears Canada Inc SRSCQ

RE:Debt deal posted on sedar

[freckled]

Still a billion dollars in assets, and not a whole lot of debt. Still, the company has not made an operating profit for years. Noncurrent assets 1.3 billion in 2013. Last report it was 239 million. They are out of real estate to sell to generate cash flow. Lampert bled the company dry a few years ago with his obsene and unwarranted huge cash dividends. Calvin Macdonald was the only CEO that really had the heart to revitalize the chain. But his plan of reinvesting in the company, and refreshing the stores was brought to a hault. Macdonald resigned and ever since the CEOs of the company have been merely caretakers. An operating loss of 422 million last year? No matter how much they lean on the 'same store sales increased last quarter' concept, the financial results continue to be terrible. You cannot remain a 'going concern' if your company suffers losses year after year. So they got a short term loan to sustain cash flow. That just means they won't be going bankrupt this year - as all of the analysts have stated.

Why has the stock fallen to record lows? It's a literally a sick story of a once proud company. It will not go bankrupt this year. However, I have been predicting a penny stock for quite some time now. And none of their numbers give me any confidence that I will be wrong in my penny stock assertion. Day trade the stock all you want. Just don't buy it and go on vacation.

Berkowitz is buying scads of shares? Sure. If he ever gets enough shares to have a controlling interest in the company, what will be left of the company at that point? Unless he has some grand master plan for the company...nobody else has the past half decade.

So getting real close to be a penny stock. I think it has bottomed for right now, and will hover around this point for the next fiscal quarter. One more bad fiscal quarter however, and down it will slip under a buck.