Sears is a mess, but in his annual letter to shareholders today, Chairman Eddie Lampert compared the company with Apple. (Read the entire letter here)
Toward the bottom of the rambling, 21-page letter, which includes concessions of “missteps,” Lampert launches into a discussion of Apple and Microsoft: how one (Microsoft) buys back stock and the other (Apple) doesn’t. (Sears is the poster child for share repurchases.)
As a result of share buybacks, he says, Microsoft’s market cap lags Apple's.
“The point is that the attention some have placed on overall market value rather than per share value is misplaced from the vantage point of an investor in a company, “he says. “Sheer size may make for interesting headlines, but it may distract from doing the optimal things for shareholders of a business.”