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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Lucretius who wrote (231329)	3/26/2003 2:07:46 PM
From: orkrious	of 436258

Merrill Lynch is out with a call on Sears (S:NYSE). Sears Credit accounts for about 65% of Sears' total profits. CEO Lacy said this is the fourth time in his eight-year career that the company has evaluated the sale of the credit card business. While Wall Street expects nearly $7 billion from the asset sale, Merrill thinks the range will be $4.5 billion to $6 billion in light of poor credit trends. Possible buyers are GE Capital (which purchasd J.C. Penney's (JCP:NYSE) credit operations), Bank One (ONE:NYSE) or Citigroup (C:NYSE). Assuming a 40% tax rate of sale (and at higher end of Merrill estimates) the remaining business might be worth about 6.5x earnings, yielding an asset value of only $21-$25/share. Not too atractive considering the current price of $24. None

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