Eddie Lambert may have to loan Sears Holdings (NYSE: SHLD) some money. Cash at the company be getting very tight. According to the Wall Street Journal, "some analysts wonder whether falling sales, slimmer profit margins and other woes are causing cash flows to decline to a level that could hinder a turnaround."

The last cash balance that Sears announced was lower than most analysts expected. If the company needs to spend money to improve its stores or increase inventory in products it thinks will sell well, it could draw down the cash level even further.

For Lampert, the bad news keeps getting worse. Sears stock has staged a mini-rally over the last two weeks, moving from below $85 to $103. News about cash problems could push the shares back down.

Lampert made the classic error of thinking that with Sears and K-Mart 1+1=3. In reality, he took two weak companies and saved some money in a merger. The problem was that the companies got even weaker.

Who says that hedge fund managers don't make good corporate chiefs?

Douglas A. McIntyre is an editor at 247wallst.com.

Aylwin B. Lewis will step down as CEO of Sears Holdings (NASDAQ: SHLD), paying for the sins of his boss, hedge-fund billionaire Eddie Lampert. Lampert put together the Sears chain with K-Mart and found that one plus one equals zero when the brands are so poor that people would rather shop at Wal-Mart (NYSE: WMT).

Shares in Sears are down from a 52-week high of $195 to under $100. They will probably fall much further. Lampert has said he will make operating units more free to handle decisions at the brand level. He brought in new management to run the company's e-commerce unit.

In a statement quoted at MarketWatch, Lampert said ,"We are entering a new phase in Sears' evolution as a multi-channel retailer, as reflected by the new operational structure we recently announced, and the board has determined that now is the right time to put in place new leadership to take the company forward."

In other words, "we have no idea what we are doing, so we will try a new horse."

Douglas A. McIntyre is an editor at 247wallst.com.

Shares of Sears Holding Corp. (NYSE: SHLD) have been taking a beating in today's action after a dismal third quarter earnings report this morning. At one point shares had dipped as much as 16%, but with an hour left to go in the session shares have moved slightly higher, only showing a 12% drop as shares are trading down $14 to $101.56.

If you ask me, the stock is doing better than it probably should, considering just how poor this morning's report was. Analysts had been expecting to see the retailer show net income of 53 cents per share for its third quarter. The actual net income? ONE PENNY! It is not often that you see such a miss.

During 2007 the company showed earnings of 80 cents for its third quarter, and today's report represents the largest year over year drop in income since Sears and K-Mart merged back in 2005, and the first consecutive quarter earnings decline.