Today, the wire story reads: "Sears Holdings Corporation (SHLD) announced it expects that net income for its fourth quarter ending February 3, 2007 will be between $750 million and $830 million, or between $4.87 and $5.39 per fully diluted share. For the full year ending February 3, 2007, SHLD expects net income to be between $1.42 billion and $1.50 billion, or between $9.12 and $9.63 per fully diluted share."

But, but, but; isn't this a real estate play? Location, location, location;

Sears Holdings has dubious retailer management and declining revenues and earnings in the business of department store retail operations. Isn't that why you would buy a department store retailer: quality management, and rising operating sales, margins and earnings?

Against the two U.S. Department Store Cara 100 selections, JC Penny and Kohl's (JCP and KSS), SHLD has managed to keep pace for the past three months. But, with today's report, I suspect that after the earnings quality is reviewed, SHLD may be in for a period of under-performance.

No position. Actually, I don't much care for U.S. Department Store stocks right now. Consumer spending is uncertain in the face of a likely economic recession, and margins are being squeezed.