Hi, I know this is a really boring post, but I would like to hear from anyone who either works or investors (or had invested) in Kmart and your views on the restructuring process they are going through. Also, if anyone knows where I can find the risk free rate of interest for a particular day I would really, really appreciate it. I have tried the WSJ and the Washington Post and am having a difficult time trying to locate it. Thank you so much. Dani
Dani, not boring at all. I've never worked for nor invested in Kmart (so I can't answer your questions, lol... consider this to be the OT answer to the OT question, heh)... but I read somewhere in the last couple of weeks that Kmart may well be a good investment now and that the stock basically has nowhere else to go but up. Interestingly they were up 2.2% Friday (much better than the doggy AOL that I still hold): source: http://www.siliconinvestor.com/research/quote.gsp?s=KM Moreover of 9 leading market analysts, 8 of them regard Kmart as a buy or hold: source: http://kevxml2a.infospace.com/info.silinv/finance/research/bkr_res.htm?qsym=KM&ver=10891 I wish I could remember the article I saw that elaborated this some. (For what it's worth, in case you didn't feel like clicking the link, those 9 analysts were: A.G. Edwards, Bear Stearns, Buckman Buckman, Buckingham Res, Ladenberg Thalm, Bank of America, Pershing, and Midwest Research.) Doc
I have none of that info, but can tell you that son-in-law was just laid off from Kmart this last week due to "impending financial difficulties." Stores are closing around here right and left.
Thanks Doc and Nana for the information. I know all about doggie AOL. So much for that wonderful, great Time Warner merger. Dani PS It could be worse we could be holding MCI Worldcom or Lucent stock.
I visited this subject a few months ago, but only scratched the surface at http://consumers.creditnet.com/straighttalk/board/showthread.php?postid=161340. I too am very interested in KMart. However, if you are a Buffet-style investor, take a look at this: http://www.quicken.com/investments/strategies/?symbol=km. CardKid
Take a look at my tickers if you want to retire with a generous nest-egg...and watch Suze Orman on CNBC tonight at 8 PM EST on CNBC. CardKid
Cardkid, I was reading your stock picks. My money is on Krispy Kreme. Earnings last quarter of 55% and they are about to become global. Just watching the market (and society) people may not buy houses, they may not buy new cars, but they buy donuts. Dani
Bit more info from son-in-law...poor management, they have a lease ..had it forever, Walmart is about to out them when it comes up later this year. They've had broken air conditioners in store for 2 months now (In El Paso, that is a HUGE concern) and cannot afford repairs. Ok...on my way...
Dani, What do you mean risk free interest rate for a particular day? Institutions will invest excess cash for a day or 2 in Fed Funds or cash management bills,etc.
Nana, These are the concerns I have with Kmart and their restructuring. I was skimming their 1999-2001 annual returns and I really am concerned with the large difference between net income for these years: 1999 - +403 million 2000 - (244) million 2001 - (2.418) billion We are talking substantial losses. I don't think they can bounce back. Walmart and Target have outperformed them for many years. Kmart does not have the liquidity, the bluelight special light website costs them millions in revenue, and customer service is just bad. Although, in the past month or so I have noticed an improvement - employees are much friendly and the stores are cleaner (at least in my area). I think the pending recession is also holding them down and they may not ever fully recover. But, I noticed there seems to be alot of that lately concerning the Fortune 500 companies. Stock prices for AT&T, Oracle, SunMicro Systems, and MCI are all down substantially. My money is on small cap (and Krispy Kreme). I think we will see an increase in BKs with large American organizations within the next few years. Dani
It is for a project I am working on. I have been assigned to find the Krf effective June 5...it is needed for my finanical formulas, but I can't find it. I tried looking under U.S. Treasury Bonds (since this is the only place that even has a risk free interest rate) but am having lousy luck. Dani
Dani: Everything you said is what my son-in-law experienced ... but intensified being right in there. I can tell you the talk around mgmt is bleak. Most are searching for other jobs and many have left. It is like a sinking ship. I just received a KMart Mastercard by the way. LOL We have a Kmart here cross cornered to a Target. It is like night and day when you look at the parking lot and the cars! Kmart has a few...Target is almost packed. It's kinda sad...
Dani, Do you really believe that? Here's a couple of links that should interest you (starting with your favorite): Krispy Kreme Insider Purchases Awards: http://cbs.marketwatch.com/tools/quotes/insiders.asp?symb=KKD&vc=0&siteid=mktw Capital One Insider Purchases Awards: http://cbs.marketwatch.com/tools/quotes/insiders.asp?symb=COF&sid=13675&siteid=mktw Target Insider Purchases Awards: http://cbs.marketwatch.com/tools/quotes/insiders.asp?symb=TGT&vc=0&siteid=mktw Countrywide Insider Purchases Awards: http://cbs.marketwatch.com/tools/quotes/insiders.asp?symb=CCR&vc=0&siteid=mktw WalMart Insider Purchases or Awards: http://cbs.marketwatch.com/tools/quotes/insiders.asp?symb=WMT&vc=0&siteid=mktw CardKid
This is the wave I have ridden for more than 2 years: CGM Focus Fund http://cbs.marketwatch.com/tools/mu...MFX&sid=44268&fundtab=performance&siteid=mktw CGM Realty Fund http://cbs.marketwatch.com/tools/mu...MRX&sid=12713&fundtab=performance&siteid=mktw CardKid
DAni, The Fed Funds Rate would be the answer if you are looking at pricing things like options volality. Most mangers that buy and sell raw commodities that require storage will typically use the 13 week T-Bill rate.
