“Our outperform rating was based on our view that the management team was doing an excellent job of turning around the margins at this large industry player. The market's valuation at around 6 times cash flow we believe made this an attractive acquisition target. The questions now will be whether another buyer steps in.”
“We have been expecting Sears to play out similarly, but to date have not seen the asset sales or leadership that have characterized the other stories.”
“We're looking for expenses that are coming in line and gross margins that are working, and that's what we saw. These results give us more confidence that Sears can continue to improve earnings in 2006.”
“If Microsoft gets the product out in January, that would still be in time for the new budget spending that drives many mid-to-small businesses, the core of the office supply segment.”
