WBEZ | Morningstar http://www.wbez.org/tags/morningstar Latest from WBEZ Chicago Public Radio en Sears shares jump on news it will sell assets http://www.wbez.org/story/sears-shares-jump-news-it-will-sell-assets-96666 <img typeof="foaf:Image" src="http://llnw.wbez.org/story/photo/2012-February/2012-02-23/5724648433_14b3f00df0_z.jpg" alt="" /><p><p>For once, some good news for people who own stock in Sears Holdings Corporation. No, the company still isn’t profitable, but it’s raising cash by selling off some assets.<br> &nbsp;<br> Shares in the company jumped almost 20 percent after Sears said it’s raising cash – as much as three quarters of a billion dollars.<br> <br> The long struggling retailer is doing that by spinning off some stores into a separate company and selling 11 other stores to General Growth Properties.<br> <br> Morningstar analyst Paul Swinand says the company is trying assuage fears that it's going to go bankrupt.<br> <br> "They’re sort of rattling their sabers a little bit in showing that they can raise money through asset sales," Swinand said.<br> <br> The news that Sears is raising cash helped to blunt some pretty horrible news about its fourth quarter. Chief Executive Lou D’Ambrosio didn't mince words about the company's results on a conference call.</p><p>"Our fourth-quarter earnings were unacceptable," D'Ambrosio said. "We know that and are taking immediate action to address it."<br> <br> Sears lost $2.4 billion, more than $22 a share, in the quarter. According to Bloomberg, it was the company’s biggest loss in almost a decade.</p></p> Thu, 23 Feb 2012 20:40:00 -0600 http://www.wbez.org/story/sears-shares-jump-news-it-will-sell-assets-96666 Chicago analyst: Groupon IPO might not be all it's cracked up to be http://www.wbez.org/story/chicago-analyst-groupon-ipo-might-not-be-all-its-cracked-be-87403 <p><p>There's a lot of excitement surrounding Groupon's decision to sell shares to the public. Morningstar IPO Strategist Bill Buhr says there will definitely be buyers, but he's concerned about how long the excitement will last.</p><p>"We really worry about what happens if that growth doesn't show up a couple years down the road," Buhr said. "Maybe they've saturated their markets, or people have moved on to the next thing, or there's just so many online coupon sites that there's no real customer loyalty or stickiness with respect to the business model."</p><p>Buhr says it's too early to say for sure, but with the current frenzy around social media companies, Facebook and Twitter could be next to follow suit.<br> <br> No date's been set yet for Groupon's initial public offering, but shares are expected to hit the market in three to four months. A representative from Groupon was unable to comment, citing a Securities and Exchange Commission mandate.</p><p>Click <a href="http://www.sec.gov/Archives/edgar/data/1490281/000104746911005613/a2203913zs-1.htm">here </a>to view Groupon's S1 filing.</p></p> Fri, 03 Jun 2011 20:19:00 -0500 http://www.wbez.org/story/chicago-analyst-groupon-ipo-might-not-be-all-its-cracked-be-87403 Walgreen Company acquires drugstore.com http://www.wbez.org/story/drugstorecom/walgreen-company-acquires-drugstorecom-84199 <img typeof="foaf:Image" src="http://llnw.wbez.org/archives/images/cityroom/cityroom_20100217_newsintern_649970_Walg_large.png" alt="" /><p><p>North suburban-based Walgreen Company has announced it's buying a web site for more than $400 million. In a statement, Walgreen said it acquired drugstore.com in a deal valued at $409 million.</p><p>Matt Coffina, who analyzes Walgreen for Morningstar, said the acquisition makes sense for Walgreen's strategic future, but it isn't necessarily a good financial deal.</p><p>&quot;I think they want to be the drug store of choice and they want to be there for consumers regardless of what channel they use to purchase their drug store-like items and so this was one way of meeting that demand,&quot;&nbsp;Coffina said.</p><p>Coffina said drug store dot com has not been profitable in its 10-year history. He said Walgreen Company is likely to remain more focused on the nearly 7,700 stores it runs across the country than on its online presence.</p></p> Thu, 24 Mar 2011 17:56:00 -0500 http://www.wbez.org/story/drugstorecom/walgreen-company-acquires-drugstorecom-84199 Chicago home prices may drop again in 2011 http://www.wbez.org/story/analyst/chicago-home-prices-may-drop-again-2011 <p><p>Chicago homeowners could see the value of their houses drop another 5.8 percent this year &ndash; a bigger drop than the nation as a whole. That forecast comes from Clear Capital, a company that does home appraisals for big banks. Eric Landry is a housing analyst with Morningstar in Chicago. He said there&rsquo;s still reason for hope that the market is starting to bottom out. <br /><br />&quot;The days of plunging housing prices, you know 20, 30 percent, are very, very far in the rear-view mirror, we&rsquo;re not going to see that again,&quot; Landry said. &quot;There simply has not been enough new construction put in place to constitute such a scenario.&quot;<br /><br />Chicago home prices have fallen almost 30 percent since the slump began more than four years ago. Clear Capital forecasts that home prices will rise in some cities this year, including Washington, D.C., Houston and Honolulu. <br />&nbsp;</p></p> Fri, 07 Jan 2011 06:01:00 -0600 http://www.wbez.org/story/analyst/chicago-home-prices-may-drop-again-2011 Sears, other stores hope for shoppers on Thanksgiving Day http://www.wbez.org/story/black-friday/sears-other-stores-hope-shoppers-thanksgiving-day <p><p>This year, some retailers are hoping for a Black Thursday in addition to a Black Friday.</p><p>The economic slump is pushing some retailers to encroach on a once sacrosanct holiday. For the first time, Sears will open Thanksgiving morning. Sears spokeswoman Natalie Norris-Howser says this is a response to what customers want.<br /><br />``Every opportunity they can take to check that one more thing off of their list, they&rsquo;re willing to do,&rsquo;&rsquo; Norris-Howser said.<br /><br />But not everyone thinks it will yield much of a payoff.&nbsp; Morningstar analyst Paul Swinand says it&rsquo;s a gamble that he usually sees from retailers that are struggling.<br /><br />``You might have just captured somebody you would have captured later in December anyway, so now you&rsquo;ve spent more money to capture the same amount of sales in aggregate over the holiday period,&rsquo;&rsquo; Swinand said.<br /><br />Many Old Navy stores will open on Thanksgiving, but most retailers are waiting till Black Friday. Carson Pirie Scott hopes people will take a little catnap after digesting pumpkin pie and head out to shop at 3:00 am on Friday.<br /><br /><br /><br /><br /><br /><br /><br /><br />&nbsp;</p></p> Wed, 24 Nov 2010 06:01:00 -0600 http://www.wbez.org/story/black-friday/sears-other-stores-hope-shoppers-thanksgiving-day