ESL Confounds the Mind

Eddie Lampert's newest buys have been disclosed in the past seven days. For the year, all six of his positions have taken losses. Good thing he a five year tie-up for his hedge fund.

New Positions: HD, C

• Both have massive market caps
• Both are in terrible and still failing sectors
• Both have strong dividends but they are at risk
• ESL is nowhere near controlling stakes
  

SHLD

• Since peaking at $190; it has lower lows and lower highs.
• Established a 14% position in Restoration Hardware (RSTO)
  
• Buybacks continue

AZO, AN

• Both stocks are suffering from sector pressures (retail)
  
• Both continue buybacks
• Auto part providers can act as a recession resistant sector

Look for terrible news in the retail sector and buy AZO, AN, or SHLD. Wait and see what ESL is doing with its newer positions. They may have bit off more that they can chew.