Sears Holdings Corp (SHLD)

MarionContrarian (64.58) Submitted: 5/16/08 3:34 AM : Start Price: $97.08 SHLD Score: 2.99

I've been trying to make the best of my current Sears "holding" by selling calls against my position (volatility in the 40% range).

Sears will underperform the S&P through the summer months as the consumer digs in for further economic pressurest (e.g., stagnant wages, falling home prices/tapped equity, persistent food and energy pressures). While SHLD "might" get some benefit from the "stimulus checks" that are being doled out, any gains will be short-lived.

And the real esate play? Not anytime soon - wait until it comes out on TV. With the stock capped by its declining 100 day moving average, I believe that SHLD will see 85 before it sees 105.

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