A few weeks ago, my wife needed some sterno. This was around Thanksgiving and I went to the Kmart around where I live. Now, I have not been to Kmart in years.  I’ve been in Targets and Walmarts, but I have not been in a Kmart.

I walked in and…it was smelly, dirty, dingy….almost gross. They were understaffed. And when I asked about sterno, they sent me to about three different places before finding out they actually didn’t have any.

I don’t like coming on this show about talking bad about companies. I like to talk about the good. But when something sticks out like a sore thumb, I think I owe it to you guys. So you’ll know what to invest in, what to look at, and what not to invest in.

And I guess what I’ve taught you is to INVEST IN GREATNESS.

I had no idea. I was making no predictions, except to say that, as I told you, Sears , Kmart just looked like they had problems.

So what happens today?

Sears Holdings, which owns both Sears and Kmart…”comparative store sales’ decline reflects decreases in consumer electronics and apparel categories and lower layaway sales.”

Specific actions: They’re going to close 100 to 120 Kmarts and Sears full-line stores and this, that and the other thing. This has not been a well-run company in a long time.

And it’s very simple. Sometimes you don’t need to look at numbers. You just look with your eyes. So Sears Holdings was down 12 bucks to 33. Their losses over the past few quarters have been massive on no sales gains. And while everybody else is doing better with their stores, they’re doing worse.

And I know there are 4000 Kmart and Sears stores. I gotta tell you, consumers they watch, they look, they feel, they touch. Right here where that Kmart is, there is a Target. I’ll never go to that Kmart again…I’ll got Target. Or that Walmat which is about a mile away. If I’m thinking that way, guess what?

So just food for thought. Sometimes, you can see with your own eyes. You don’t have to worry about an analyst telling you things. You can see in retailers, restaurants and actual products. Follow those companies that have monstrously strong demand. Stay away from those companies that are heading south. Because I got news for you, you never know how far south, “south” is going to be.

INVEST IN GREATNESS. If you’re going to get a 2-, 3-, 4-, 5- or 10-fold move, it’s because they are doing something right. Pretty much simple as that. 

SPECIAL NOTE: Be sure to register now for my next live Webinar on Saturday January 21, 2012. I will talk about the important implications of early-January’s market action…and much more.  Click here for more information


6-7 pm EST

Best of Investor’s Edge
Saturdays 1-2 am EST

Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.