Out Fox The $treet

Chipotle Mexican Grill (CMG) is up about 15% today as the market cheers the hiring of a new CEO from Taco Bell. While CEO Brian Niccol was highly successful at Taco Bell, he isn't a good fit for the Chipotle culture. A shift from "food with integrity" will be disastrous to the stock in the short run. Don't forget that JCPenny (JCP) originally cheered the hiring of Ron Johnson and that about killed the retailer as he attempted to change the corporate culture.

When Sears Holdings ( NASDAQ: SHLD     ) announced weak earnings after the market closed on Jan. 9, investors panicked again ignoring the facts of the company. Investors need to understand that Sears only reported the income statement numbers. If one remembers Accounting 101, the actual valuation of a company is based on the balance sheet or the assets minus the liabilities. The income level each quarter adds or subtracts from the equity on the balance sheet, but a large loss doesn't necessarily destroy assets forever. In the case of Sears, the balance sheet is littered with hidden assets that are overshadowed by these weak retail results. Read the full article here . Disclosure: Long SHLD. Please review the disclaimer page for more details. 

In a move long expected, Sears Holdings ( NASDAQ: SHLD     ) announced plans to go forward with a spin-off of Lands' End. While a timeline wasn't provided, the announcement comes after a chaotic week for the stock. News of ESL distributing shares to investors and speculation that J.C. Penny Company ( NYSE: JCP     ) is taking back market share hit the stock hard this past week. With Sears Holdings down nearly $20, or roughly 30%, in a few weeks, it is good for long-term investors to take stock of the investment thesis. The important part to be considered is whether these transactions alter the previous investment thesis or whether the moves are only noise that impacts the fringes of any decision. The market has reacted with fear of a cash crunch, but is this fear logical? Read the full article here . Disclosure: Long SHLD. Please review the disclaimer page for more details. 

Though Sears Holdings ( NASDAQ: SHLD     ) soared nearly 12% during the trading session last Tuesday on news of further transformational transactions to unlock value, investors shouldn't be surprised by the announcement. Sears is one of the largest retailers in the U.S., but most investors don't realize the numerous business units that are hidden under the surface. The media has mostly spun the plans for Lands End and Sears Auto Centers, or SAC, as "liquidation moves", but investors should note the proposals don't involve raising cash from these units. Read the article here . Disclosure: Long SHLD. Please review the disclaimer page for more details. 

The debate continues to rage, usually to the extremes, of whether Sears Holdings (SHLD) has no value or enormous value due to a vast array of undervalued assets. For example, the owned real estate is mostly valued at cost and not current market values leaving a wide debate on the proper valuations. See my past articles on these subjects here. The company operates as a specialty retailer in the U.S. and Canada. It operates under the Kmart and Sears segments with major brands such as Kenmore, Craftsman, DieHard, Joe Boxer, Lands End, and Jaclyn Smith. This will be the first part of a series intended at discussing the recent Q2 earnings announcement, followed by the Bruce Berkowitz case study, and finally a review of the pending spin offs. Read the full article at Seeking Alpha. Disclosure: Long SHLD, GPS, and KSS. Please review the disclaimer page fore more details. 

After recently  writing  about how some of the new media companies had failed to embrace new business models, along came my initial introduction to shopkick. Last week, shopkick  announced  that it has signed up  Target ( TGT )  as the largest retailer to use the service. My issue with some of the new media companies is that the revenue source remains very old media since a large salesforce is needed to attract advertiser dollars. Shopkick is an interesting app for the iPhone and Android phones that makes shopping more delightful. Users are rewarded with points known as "kicks" for walking into stores or scanning products. These kicks can be redeemed for gift cards,  Facebook ( FB )  credits, iTunes downloads, or donated to charity. Guests can also receive special in-store deals including coupons and discounts. Brand Awareness After trying the app at the local Target store, it struck me that no better advertising tool existed for brand pro...

The WSJ reported around noon on Friday that Liz Claiborne (LIZ) has been in talks with private equity firms over a potential deal around $20 a share. Currently, it doesn't appear that any of the firms, such as KKR & Co (KKR) , Permira or Warburg Pincus LLC, find that price appealing. Not to mention that the Liz management has denied any interest in selling the company. The news was enough to send the stock soaring. It closed at $13.36, up nearly 13% at a new 52-week high. At $20, Liz would have a value around $2B. Is that an appealing price for long investors? First, lets look back to the recent transformation of the company. Back in October, I wrote an article about the transformation of the company. Just prior to that article, an investor could've bought Liz's stock in the $4s. Now the stock has tripled and a deal around $20 would've given an investor a 300% gain in less than six months. Read the full article at Seeking Alpha. Disclosure: Long LIZ. Please r...

Last Wednesday, Liz Claiborne (LIZ) announced numerous transactions that not only generated $328M in cash to drastically reduce debt, but most importantly, greatly reduced the complexity of the brand focus ending years of transforming the company. The press release highlights just how complex the structure remained even after years of selling off brands. LIZ sold the namesake brand Liz Claiborne and Monet to JCPenny (JCP), Dana Buchman to Kohl's (KSS), terminated a license for DKNY, and sold three more minor brands to Bluestar Alliance. This was on top of the joint venture for MEXX and the Elizabeth Arden transaction recently announced . It also doesn't include numerous other brands sold off over the last 3-4 years of streamlining the focus of the company. Read the full article at Seeking Alpha. Disclosure: Long LIZ. Please review the disclaimer page for more details.