Sears canada- SCC

[b_radlewis]

Sears Canada Declares C$3.50 Dividend Despite Lower 1Q Net
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6:10 PM ET 5/18/10 | Dow Jones
DOW JONES NEWSWIRES

Despite reporting lower earnings, revenue and same-store sales in the first quarter, Sears Canada Inc. (SCC.T) declared a special dividend of C$3.50 a share on its common shares.

The dividend will be payable June 4 to shareholders of record May 10.

At Sears Canada's annual meeting last month, shareholders questioned company executives about the company's net cash position of about C$1 billion. The company said it had been wise to hang onto the cash during the recession.

It said that, after payment of the special dividend and a C$200 million debt payment in early May, it will have about C$717 million in cash and equivalents on a pro forma basis.

The big department-store operator had net income of C$7.2 million or 7 Canadian cents a share in the latest quarter, down from C$10.3 million or 10 Canadian cents a year earlier.

On an operating basis, it earned 16 Canadian cents a year earlier.

Revenue decreased 4.4% to C$1.07 billion. Same-store sales were off 2.0%.

The company said sales were hurt by "a planned reduction in catalog impressions of 16.6%" and the higher Canadian dollar. It said it has responded by lowering prices and providing special services, such as deferred financing and equal billing payments.

Parent Sears Holdings Corp. (SHLD) recently agreed to pay about US$560 million for an additional 17.6% stake in Toronto-based Sears Canada, boosting its stake to about 90%. It paid C$30 a share. The seller, hedge-fund operator Pershing Square Capital Management LP, had thwarted Sears Holdings' 2006 attempt to buy out Sears Canada. Some observers now expect Sears Holdings to move again to privatize the Canadian subsidiary.

Tuesday in Toronto, Sears Canada closed at C$27.00, unchanged.

-By Carolyn King, Dow Jones Newswires; 416-306-2100; carolyn.m.king@dowjones.com

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[b_radlewis]

In order to play this I believe you would have to convert your usd into the Canadian currency then buy the stock sometime tomorrow morning to jump in on the bandwagon for the big ride. I am still doing research in this stock trying to figure out if it is worth it or not. This stock is also a great candidate for the run-up strategy.

[b_radlewis]

UPDATE 1-Sears Canada profit slips, announces special div

* To pay C$3.50/shr special dividend

* Q1 EPS C$0.07 vs year-before C$0.10

* Says will make normal course issuer bid

TORONTO, May 18 (Reuters) - Sears Canada SCC.TO said on Tuesday first-quarter profit fell 30 percent, and announced a C$3.50-per-share special dividend and a possible share buyback that would bring parent Sears Holdings Corp (SHLD) closer to full ownership of the company.

Sears Canada said it will spend C$367.7 million ($351 million) to issue the dividend, which will be paid to shareholders of record at the close of business on May 31.

Sears Canada will also make a normal course issuer bid, allowing the company to purchase for cancellation up to 5.4 million shares, or about 5 percent of the company.

Sears Holdings said in April it would buy hedge fund manager Bill Ackman's 17 percent stake in Sears Canada, giving Sears Holdings a 90 percent stake. Sears Holdings failed in an attempt to take Sears Canada private several years ago.

Net profit fell to C$7.2 million, or 7 Canadian cents per share, in the three months ended May 1, from C$10.3 million, or 10 Canadian cents per share, in the year-before period.

Revenue eased 4.4 percent to C$1.1 billion, as the strong Canadian dollar prompted shoppers to seek bargains in the United States. ($1=$1.04 Canadian) (Reporting by Cameron French; Editing by Steve Orlofsky)

[BadThad]

I don't mess with foreign dividends anymore, the taxes will eat you alive.

[b_radlewis]

I was thinking of just playing the run up on this. I will only be able to tell at a later date.