Sears Holdings Corp (SHLD)

bert111 (69.36) Submitted: 6/02/08 1:48 PM : Start Price: $111.96 SHLD Score: -11.78

Sears is viewed as a retailer, a holding company, the folly of Eddie Lambert, and as a lion in real-estate-lambs clothing. I view it as a potential short squeeze at around $80 a share. With more than two weeks to cover, a declared book value of $80.81, and an adjusted book value of $81.17, the hard assets provide, if not a floor, then, at least a limit on the downside of the stock. The shorts, however, loudly claim the stock is headed toward $50, but this strikes me as bluster borne of little data and a defined options expiration date. Moreover, the company lists the book value of its real estate holdings at $1 billion, which is the basis on which the book value is calculated. Credit Suisse, however, estimated the actual value of the real estate holdings at $4.7 billion. If the Credit Suisse figure is accurate, the real book value of the company is something above $104 per share. My calculations in support of these claims is provided at:
http://rcrawford.wordpress.com/2008/05/24/sears-holdings…ld-may-23-2008sears-holdings-nyse-shld-may-23-2008/

The calculations using the Credit Suisse estimate is provided at:
http://rcrawford.wordpress.com/2008/06/02/sears-supposit…l-estate-valuesears-supposition-about-real-estate-value/

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