“The stock trades above a level that we would view as appropriate for the current earnings that, absent signals of improvement or takeover, would imply downside.”
“Kmart is generating well over $500 million a year in cash flow. They have over $2 billion in cash. That, combined with their real estate value, should provide higher support for the stock.”
“Their lack of investments in systems, continued new store growth by Wal-Mart and higher prices point to short-term cash maximization, not long-term growth,”
