We're looking for expenses that are coming in line and gross margins that are working, and that's what we saw. These results give us more confidence that Sears can continue to improve earnings in 2006.

At first glance, this seems like a strange deal as investors in Sears Holdings are looking for cash generation, not new investments.

We sold off the securities to improve our margins, as well as absorb the other expenses, to better position ourselves for growth in 2006. We are focused on managing our balance sheet and slowing the growth of non-interest expenses.

Disappointing gross margins muted fourth-quarter results.

The two weak links in the store are apparel and consumer electronics. One could have had a nice nap in the consumer electronics section given the light traffic. Conversely, appliances were buzzing.

The stock trades above a level that we would view as appropriate for the current earnings that, absent signals of improvement or takeover, would imply downside.