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Sears was ‘fashionably late’ with their earnings report

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Sears was supposed to… report earnings before the market opened yesterday but instead reported after the closing bell. Not reporting earnings when you say you are going to report earnings is just bad news…and weird. So the company built up all this suspense – what happened?

 

You guessed it… Sears did horrible, again. The company topped its previous failures to the tune of a $508 million loss, which is two times as much as they lost the previous year. Sears CEO Eddie Lampert stated that the company is looking to remain a “going concern.” If you’re not an account, being a going-concern means that it seems like you have the resources to stay in business. I really hope the CEO plans to remain a going concern. And to be honest, that was the best news on the earnings call.

 

What else is new with Sears… they’re still trying to sell Kenmore, which Lampert (yes, the CEO) has offered to buy for $400 million. The Kenmore brand is still worth about three times more than the company itself. And 46 more Sears and K-Mart stores will close before Christmas. Looks like we better write about them while we still can.

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Mid caps

Should Build-A-Bear really be online?

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Remember Build-a-Bear’s … “Pay Your Age” promotion that blew up in the company’s face? Yep – you remember, we remember, they remember – everyone remembers. Every child and their mother (literally) came to get a bear that day. And even though customers left disappointed when stores closed early due to lack of inventory, Build-A-Bear made some serious brick-and-mortar sales.

 

Long lines at the mall… is something that never happens anymore – except when there is a ridiculously good promotion going on. However, Build-a-Bear has been re-thinking its business model and has bolstered their online presence. After all, Build-a-Bear is usually expensive as $#!t and promotions can’t save them forever.  But it’s BUILD-a-Bear – isn’t half the fun building the bear?

 

Well, now you can also… order-a-bear, on the internet, like a normal, boring adult. The stuffed-animal company has closed underperforming stores and opened new stores in more popular locations, including three stores in the Mall of America. C’mon, people – Build-a-Bear is an experience, don’t order it online.

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Blue Chip

Pretty soon GE will be nothing but a pile of cash

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This is where GE is headed because… they keep selling parts of their business for money. Of course, the company also has an astonishing amount of debt – so actually, they will soon be a pile of nothing. GE Aviation (the one part of GE pulling its weight) is getting rid of Middle River Aircraft Systems for $630 million. The company has about 800 employees and has been building aircrafts for about 90 years.

 

Here is why GE is selling… they are selling to pay-off that “mountain of debt” that has become synonymous with the company. The company has sold its healthcare, oil and gas, and locomotive businesses up to this. The light bulb maker is also looking for someone to buy their light bulb division. Hm…

 

It has been rough going for GE… who has seen their stock prices slashed by 60% and was kicked out of the Dow. GE is currently betting on the aviation biz which powers 2 out of 3 commercial flight departures. So, hey, it’s not all gloom and doom for GE. Not yet, anyway.

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Blue Chip

Here are the results from Nike’s ‘Kaepernick Ad’

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Let’s take a look at… what Nike was thinking placing Colin Kaepernick front-and-center of the company’s 30th anniversary “Just Do It” campaign. Well, the results are in, and it appears that Nike was investing heavily in their younger customers. It worked.

 

Among people 18 to 34… 44% were in favor of Nike’s decision while 32% were against it. Those aged 35 to 44 had 52% support and 37% oppose the decision. Last, and probably least, people over 65 had just 26% supporting the decision – so ‘Dad shoe’ sales will be taking a hit this year. However, two-thirds of the Nike customer base is under 35 so who cares?

 

The ad didn’t matter… because the company’s stock is up and sales were also up 31% after it released. It looks like the advertisement went well and resonated with Nike’s customer base; plus LeBron, arguably the company’s most prominent sponsor athlete, was in support (essential to keep him happy). So, hey, it all worked out for Nike – nice work.

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