Sears Holdings worth a Look?

Eddie Lampert

Could it be?

Sears Holdings Corp. (SHLD) was once the darling new retailer REIT growth story ran by the untouchable Eddie Lampert that was trading near $200. That was back in 2007, today the stock is just under $43 and last Oct. it was at $24 per share. Is there something left to buy in Sears that could make it breakout stock in 2015?

Sears is not dead yet, it has made an amazing comeback since winter.  The chart tells the story and prior to that it was an ugly graph. It's flagship retailers Kmart and Sears are a dying breed. Does anyone under the age of 40 shop at Sears? Does anyone you know talk about Sears and Kmart  as cool or rad?  Perhaps Sears is the next best thing to challenge Urban Outfitters (URBN), the Gap (GPS) or any retailer that has actual people buying merchandise.  Sears is so much fun and... I'll stop. It's just mean at this point.

This month Sears Holdings finally got to becoming a REIT. Seritage Growth Properties which will buy roughly 254 of the company's Sears and Kmart stores (SHLD owns or leases 1,725 Sears and Kmarts). Proceeds to SHLD are expected to be north of $2.5B, and in turn the company will lease back the stores from Seritage and continue to operate them. That shot up shares of SHLD 6%.

Ticker Price 52 Wk-High 52 Wk-Low EPS From 52wk High From 52wk Low
SHLD $42.93 $48.25 $24.10 -15.82 -12.39% 45.05%

Sears is also in bed with General Growth Properties (GGP), they will contribute 12 properties to the JV at malls controlled by General Growth Properties in exchange for a 50% interest in the entity.  The transaction values the exchanged Sears properties at $330 million.

That's all great and year-to-date it puts SHLD up 30%. So we missed the ride. However is there still room for more return on investment if you buy next week?

MASTERY Bottom Line (Ninja Style)

Sears continues to close stores that are not working and fire employes to make shareholders happy. Lampert is getting the attention of Wall Street.  It can be seen in it's increasing share price. Mastery exepcts the analysts to start endorsing SHLD with higher target prices in the coming weeks.

 

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