Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] KMart vs Enron
Date: Tue, 22 Jan 2002 12:07:00 -0500
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I would have to agree with you, Katherine, on both the demographics, and =
locations. I always had the sense that KM placed their stores in or =
adjacent to very poor or low income neighborhoods. That, combined with =
often cheap merchandise, often kept me away in favor of other retailers =
where I was either more comfortable with the store, or the merchandise.
Tom Worley
stkguru@netside.net
AIM: TexWorley
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, January 22, 2002 11:51 AM
Subject: Re: [CANSLIM] KMart vs Enron
I see a biggest difference in the ENE vs KM story as a lesson in =
capitalism. That is, when a business becomes redundant or has lost its =
strategic advantage, it disappears. I'm sorry for the KM shareholders, =
but KM's inability to buck up and smell the market before it was too =
late has put it where it is today. WMT redefined discount retailing, TGT =
created a targeted demographic twist, NDN and DG segmented and =
subdivided the "big store" into small local stores reminiscent of the =
old 5 and dime, BBBY and LIN created a unique niche, etc. I'd go to KM =
to buy Martha Stewart goodies, but I don't even know where there's a =
store in town! Bad locations, bad strategies, bad execution, didn't "own =
up" to the problem until it was many years too late. Bye-bye KM.
Katherine
----- Original Message -----=20
From: Tom Worley=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, January 22, 2002 10:27 AM
Subject: [CANSLIM] KMart vs Enron
Today's bankruptcy filing by KMart opens a lot of questions, =
starting with which will be the bigger story, KM or ENE?
Both are huge bankruptcies, ENE likely to remain the biggest, but KM =
is the largest by a retailer. And with over 2,100 brick and mortar =
stores, many of which will likely be closed, going to have a significant =
impact on employment.
ENE died because of financial shenanigans and corrupt insider deals, =
lots of lies and plenty of places to put the blame, including on the =
auditors.
KM will likely survive, but take a year or more, and emerge as much =
smaller and less competitive. Since it already proved it cannot stand =
against Walmart and Target, questionable in my mind what it can do =
differently as a smaller retail chain. Was this only stiff competition =
in a recession, or poor management as well?
With KM down 54% just for today, and 94% since its last high on =
8/8/01, who can you trust anymore in the executive level of =
corporations. Today makes me glad I stick to my small caps, where a =
rumored buyout finally official gave me a 10% gain on one stock, and a =
new contract gave me 13% on another. Big caps are just too big and =
complicated for the likes of me. At least I make money for the day.
Tom Worley
stkguru@netside.net
AIM: TexWorley
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<DIV><FONT face=3DArial>I would have to agree with you, Katherine, on =
both the=20
demographics, and locations. I always had the sense that KM placed their =
stores=20
in or adjacent to very poor or low income neighborhoods. That, combined =
with=20
often cheap merchandise, often kept me away in favor of other retailers =
where I=20
was either more comfortable with the store, or the =
merchandise.</FONT></DIV>
<DIV> </DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley</DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, January 22, 2002 =
11:51=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] KMart vs =
Enron</DIV>
<DIV><BR></DIV>
<DIV>I see a biggest difference in the ENE vs KM story as a lesson in=20
capitalism. That is, when a business becomes redundant or has lost its =
strategic advantage, it disappears. I'm sorry for the KM shareholders, =
but=20
KM's inability to buck up and smell the market before it was too late =
has put=20
it where it is today. WMT redefined discount retailing, TGT created a =
targeted=20
demographic twist, NDN and DG segmented and subdivided the "big store" =
into=20
small local stores reminiscent of the old 5 and dime, BBBY and LIN =
created a=20
unique niche, etc. I'd go to KM to buy Martha Stewart goodies, but I =
don't=20
even know where there's a store in town! Bad locations, bad =
strategies, bad=20
execution, didn't "own up" to the problem until it was many years too =
late.=20
Bye-bye KM.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dstkguru@netside.net =
href=3D"mailto:stkguru@netside.net">Tom=20
Worley</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, January 22, =
2002 10:27=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] KMart vs =
Enron</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial>Today's bankruptcy filing by KMart opens a =
lot of=20
questions, starting with which will be the bigger story, KM or=20
ENE?</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>Both are huge bankruptcies, ENE likely to =
remain the=20
biggest, but KM is the largest by a retailer. And with over 2,100 =
brick and=20
mortar stores, many of which will likely be closed, going to have a=20
significant impact on employment.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>ENE died because of financial shenanigans =
and corrupt=20
insider deals, lots of lies and plenty of places to put the blame, =
including=20
on the auditors.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>KM will likely survive, but take a year or =
more, and=20
emerge as much smaller and less competitive. Since it already proved =
it=20
cannot stand against Walmart and Target, questionable in my mind =
what it can=20
do differently as a smaller retail chain. Was this only stiff =
competition in=20
a recession, or poor management as well?</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>With KM down 54% just for today, and 94% =
since its=20
last high on 8/8/01, who can you trust anymore in the executive =
level of=20
corporations. Today makes me glad I stick to my small caps, where a =
rumored=20
buyout finally official gave me a 10% gain on one stock, and a new =
contract=20
gave me 13% on another. Big caps are just too big and complicated =
for the=20
likes of me. At least I make money for the day.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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