Has anyone thought of shorting K-Mart?
I don't think they're going to make it.
When they emerged from bankrupcy, that piece of crap was re-issued at around $15 or so a share.
It closed today @$29.40 (KMRT)
Excert from Yahoo Finance:
"Kmart's limiting its markdowns and is trying to drive what it calls "profitable sales," a seemingly novel concept for the retailer. Customers used to seeing everything at Kmart as a Bluelight Special are surprised to find the company offering up lots more full-price merchandise. It looks like shoppers aren't yet buying into Kmart's new image, though, judging by the same-store sales results. Still, holding the line on pricing allowed Kmart to produce a profit for the month of November."
In my opinion, if K-Mart is trying to improve their image, they need a name change.
I think there's a stigma attached to K-Mart : Junk.
Even though they have a few name brands such as Joe Boxer and Martha Stewart (I can't stand her and would never buy any of her crap. But hey, that's just my opinion) people still think "cheap" when they go to K-Mart and are reluctant to spend money unless they feel they are "stealing" the merchandise.
I think it could make a good short.
Opinions, anyone?
Scott
