KMART News for the KMART guy

[IndyRacing]

Look who now has 2 billion dollars to spend. Your stock went up by the way.

Kmart received approval to use $2-bil in financing to operate in Ch. 11
A U.S. bankruptcy judge has approved Kmart's (0.90,+0.21,KM,Sell/Spec) request to use as much as $2-billion in financing that the company obtained to operate in Chapter 11.

 

[HappyFace]

Why would anyone offering funding to Kmart, despite the fact that it's going down? Would you offer financing to the Titanic after it had ripped it's hull open on an iceburg? I think not.

 

[Tsaico]

I live in Kmart... And hey, they Have Martha on their side...

 

[tm37]

<< Why would anyone offering funding to Kmart, despite the fact that it's going down? Would you offer financing to the Titanic after it had ripped it's hull open on an iceburg? I think not. >>



Many people think that Kmart can come out of this with the right stucturing and reorginazation. However Once the titanic Started down it wasn't coming back up!

 

[gopunk]

<< Why would anyone offering funding to Kmart, despite the fact that it's going down? Would you offer financing to the Titanic after it had ripped it's hull open on an iceburg? I think not. >>



Texaco, 7-11, and Toys R Us come to mind.

 

[Ornery]

Don't forget Chrysler. How much would you be willing to pay a Lee Iacocca to pull it out?

 

[gopunk]

oh i didn't know about chrysler...

anybody know how much k-mart's stock has gone up? i'm just curious for future reference, as i was too young to get in on this hot deal.

 

[Ornery]

I have no idea what their stock has been doing, but I bet the right people could put it all right.

A friend of mine told me about one of his relatives that managed a department at Kmart. He was told to get rid of the lawn mowers and add more bird houses. He balked. He was told that they made about as much profit on each bird house as each lawn mower. He argued that people came in to buy the lawn mowers and ended up buying bird houses in the process. Fell on deaf ears... like I said, the right person(s), making the right decisions, could make ALL the difference.

 

[Kenazo]

Well I think it's low was O.66. It went up ~30% today hitting a high of 0.98. I think what really caused the dive was the Enron disaster, and then it was pulled from the S&P which caused most major fund managers to pull out.

<c'mon KM> I'm in today at 0.89. </c'mon KM>

 

[wyvrn]

I think they can come out of this alive, if they get some better management. They are a huge retailer still with loads of market share and they have cleaned up many of their stores from where they used to be. I can walk into Kmart and it is cleaner and better lit than my local Walmart. But their prices are higher on the same items. So are Target's, but they also have higher quality merchandise in many areas too. Kmart sales people are not helpful at all, that is just a climate change that can happen. And they need more deals like with M. Stewart on an "exclusive" product that you cannot get anywhere else but there. Walmart does this all the time with many manufacturers. Kmart is not going to overtake Walmart, but if they can identify segments of buyers Walmart is not hitting they can recover market share and become profitable again.

 

[Ornery]

OK, wyvrn for CEO!

Can you imagine a CEO hiring on with compensation paid totally in stock? How about $100,000 per year at today's stock price? Imagine who would be yelling loudest about overpaid CEOs if he turns it around?

Edit: I don't know about his compensation, but Kmart's savior has already been tapped.

 

[wyvrn]

CEO is cool.