Sears Holdings Corp (NASDAQ:SHLD)

CAPS Rating: 1 out of 5

The Company is a broadline retailer. It currently conducts its operations in three business segments: Kmart, Sears Domestic and Sears Canada.

SHLD News and Commentary

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All Players

1,426 Outperform
1,055 Underperform
 

All-Star Players

251 Outperform
279 Underperform
 

Wall Street

4 Outperform
6 Underperform
 

Top SHLD Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

beppaun (52.96)
Submitted October 02, 2014

Here with the insider buying of a great character like DePodesta, known for his notable appearance in the book Moneyball

rhallbick (96.65)
Submitted April 26, 2018

Sears Holdings Corp. (NASDAQ Global Select: SHLD)Thesis: What was once Sears, Roebuck and Co, and then Kmart-Sears, is becoming a corporate hollow shell with fewer and fewer core assets, and is more and more irrelevant in the modern retail… More

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Recent Community Commentary

Read the most recent pitches from players about SHLD.

Recs

0
Member Avatar InvestRight (92.64) Submitted: 5/9/2018 12:29:15 PM : Underperform Start Price: $3.35 SHLD Score: +36.55

Sears is a disaster.

Recs

2
Member Avatar rhallbick (96.65) Submitted: 4/26/2018 12:33:40 PM : Underperform Start Price: $2.26 SHLD Score: +1.82

Sears Holdings Corp. (NASDAQ Global Select: SHLD)

Thesis: What was once Sears, Roebuck and Co, and then Kmart-Sears, is becoming a corporate hollow shell with fewer and fewer core assets, and is more and more irrelevant in the modern retail environment.
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Once the largest retailer in the world, Sears Holdings has been in decline for more than a decade now, with year after year of falling revenue. Hedge fund owner Eddie Lampert first acquired control of the bankrupt Kmart Corp in 2003, and then used it to purchase Sears, Roebuck and Co. in 2004, renaming the combined companies Sears Holdings. Initial investor enthusiasm for the prospect of cross-selling iconic brands such as Craftsman and Martha Stewart Everyday, and monetizing the unneeded, yet valuable real estate holdings propelled the stock up over 1,100% over the next few years, peaking at about $147 per share in 2007. By 2010 though, it started to become clear that even a revamped Sears Holdings was not going to prosper in the modern retail environment, and its future was more likely a corporate death spiral. The combined company's profits peaked at $1.5 billion in 2006 and then dwindled down to next to nothing by 2010. From 2011 to 2016 the company lost $10.4 billion, and by 2014 its total debt surpassed its market cap.

Lampert's hedge fund, ESL Investments, works with Sears Holdings to provide funding, sometimes in exchange for major corporate assets. In 2015, Sears spun off 266 properties to form real estate investment trust Seritage Growth Properties, which is also headed up by Lampert. Some of the properties acquired by Seritage are rented back to Sears, while others have been divided up into new storefronts and leased to other retailers.

Lands' End, a profitable catalog and online retailer that was purchased by Sears in 2002, did not incorporate well into Sears' brick and mortar stores. In 2013, Lands' End was spun off again from Sears Holdings as an IPO, with Lampert as Lands' End’s principal shareholder. While Lands' End still has shops in Sears stores, current Lands' End CEO does not expect things to improve at Sears, as in “It’s our expectation that our Sears business at a point in time will go away...". He also notes that Lands' End had once excelled in retail innovation, but that "...kind of went away during the ownership of Sears”.

In 2017, Sears sold its Craftsman brand to Stanley Black & Decker, after controlling the iconic name in tools for 90 years. Sears will receive a total of about $900 million in a multi-year payment deal.

Sears Canada ceased operations in Jan 2018 with the final closure of what in 2016 had been a network of 140 corporate stores (including full-line, Sears Home and Outlet stores), 71 Hometown stores, over 900 catalog and online merchandise pick-up locations, 69 Sears Travel offices and a nationwide repair and service network.

Massive numbers of store closures has become the corporate norm for Sears Holdings, with 303 Kmarts and 132 Sears stores closing in 2017. As of Feb 2018, there remains a total of 432 Kmart stores and 547 full-line Sears stores open. During 2017, retail sales declined 26.5%, with comparable store sales declining 11.45% at Kmart and 15.2% at Sears.

Their ongoing restructuring program lays out a plan for 2018 that includes an additional $200 million of cost savings through workforce reductions.

ESL Investments has most recently offered to purchase Sears' Parts Direct business (which sells spare parts, mainly for appliances, tools, and lawn and garden equipment) and its home improvement business for $500 million. It also indicated a willingness to make offers for the Kenmore brand, and for Sears Holdings' remaining real estate.

This latest offer, if accepted by the board of directors, would extend the life of the company for a short time period. Cash flow from operations in 2017 was negative $1.8 billion.

"Meanwhile, maybe Sears aims to become the corporate equivalent of a small Rust Belt town, sending away its best and most promising citizens so they have a chance to succeed, impoverishing its own future. Which is more poetic than saying that the board is “stripping the company for parts.” [Laura Northrup, Consumerist, Apr 2014 article]

"The end game is to take as many assets off the table before the company is forced to file for bankruptcy, so when it files it doesn't have anything left. That benefits Eddie [Lampert] because he is in possession of the assets either as collateral for loans he's made or outright as an investor" through Seritage and ESL, says Mark Cohen, former Sears Canada CEO, now director of retail studies at Columbia Business School, and outspoken Lampert critic. [Hayley Peterson, Business Insider, Apr 2018 article]

I include the two previous quotations because they come from two knowledgeable sources, and reflect the conclusion I had already reached in my own research of the company.

As of Mar 16, 2018, there were 107,957,410 common stock shares outstanding. Each share has a book value of negative $34.54.

Price: $2.26 | Annual Dividend: $0.00 | Dividend Yield: 0.00%

Recs

1
Member Avatar TMFBigFrog (97.23) Submitted: 4/12/2018 12:03:29 AM : Underperform Start Price: $3.34 SHLD Score: +37.74

High likelihood of a bankruptcy filing.

Leaderboard

Find the members with the highest scoring picks in SHLD.

Score Leader

epc53

epc53 (27.68) Score: +424.71

The Score Leader is the player with the highest score across all their picks in SHLD.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
zoperz 22.52 3/6/2009 Underperform 3M $35.67 -93.66% +310.01% +403.67 0 Comment
GraemesPSP 99.52 3/10/2009 Underperform NS $36.76 -93.85% +301.12% +394.98 0 Comment
alexwong0708 < 20 3/4/2009 Underperform 3Y $36.52 -93.81% +298.30% +392.12 0 Comment
messman21 23.84 3/2/2009 Underperform 1Y $35.60 -93.65% +293.84% +387.49 0 Comment
ClearEyez 31.11 3/2/2009 8/16/2010 Underperform NS $36.41 -93.79% +292.37% +386.16 0 Comment
epc53 27.68 11/21/2008 Underperform NS $29.02 -92.21% +282.40% +374.62 0 Comment
KamranatUCLA 29.73 2/23/2009 Underperform 3Y $35.00 -93.54% +279.95% +373.49 1 Comment
limbachm 28.31 2/23/2009 Underperform 5Y $35.23 -93.59% +279.19% +372.78 0 Comment
OOji 28.18 3/13/2009 Underperform 1Y $39.18 -94.23% +274.62% +368.85 0 Comment
1eyedsquirrel 59.75 2/20/2009 Underperform 3Y $37.53 -93.98% +273.48% +367.45 1 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackZacks < 20 10/12/2012 Outperform 3M $59.92 +3.57% -3.04% +6.61 11/12/2012 @ $62.06 1 Comment
TrackJimCramer 85.66 10/1/2012 Underperform 3W $55.30 -95.91% +93.69% +189.60 0 Comment
TrackZacks < 20 5/17/2012 Outperform 3M $52.42 +18.37% +12.07% +6.30 9/17/2012 @ $62.05 1 Comment
TrackPoisedTo < 20 4/11/2012 Underperform 5Y $59.82 -96.22% +103.65% +199.87 0 Comment
TrackUltraLong < 20 11/3/2011 Underperform NS $79.08 -97.14% +123.19% +220.33 1 Comment
TrackZacks < 20 5/18/2011 Underperform 3M $75.85 -26.16% +3.16% +29.32 4/18/2012 @ $56.01 1 Comment
TrackZacks < 20 8/19/2010 Underperform 3M $61.03 +35.02% +22.19% -12.82 2/24/2011 @ $82.40 1 Comment
TrackGoldmanSach 78.66 4/26/2010 Underperform 5Y $123.58 -98.17% +129.23% +227.40 1 Comment
TrackZacks < 20 4/26/2010 Outperform 3M $122.48 -50.17% -11.10% -39.07 8/19/2010 @ $61.03 1 Comment
TrackEinhorn 95.61 2/26/2009 Outperform 1Y $39.36 +44.33% +15.90% +28.43 5/28/2009 @ $56.81 1 Comment
TrackUBS 92.27 12/18/2008 Underperform NS $42.20 -94.64% +213.84% +308.49 0 Comment
TrackDeutscheSec 87.04 12/3/2008 Underperform NS $35.96 +179.45% +31.68% -147.77 1/7/2010 @ $100.49 0 Comment
TrackJimCramer 85.66 9/11/2008 Outperform 3W $99.09 -44.19% +15.01% -59.20 10/1/2012 @ $55.30 0 Comment
TrackWhitman < 20 8/29/2008 Outperform 1Y $89.66 -44.51% -36.04% -8.48 4/2/2009 @ $49.75 1 Comment
TrackJimCramer 85.66 6/19/2008 Underperform 3W $77.25 +28.27% -6.63% -34.90 9/12/2008 @ $99.09 0 Comment
TrackChrisDavis 91.91 6/3/2008 Outperform 1Y $83.78 -97.30% +108.14% -205.44 1 Comment
TrackEinhorn 95.61 5/30/2008 Outperform 1Y $85.93 -59.80% -36.61% -23.19 11/28/2008 @ $34.54 2 Comments
TrackSoros 87.62 3/31/2008 Outperform NS $102.09 -97.79% +119.70% -217.49 1 Comment
TrackCreditSuiss 89.03 1/14/2008 Underperform NS $86.43 -97.39% +106.42% +203.81 0 Comment
TrackPabrai 74.92 12/31/2007 Outperform NS $102.05 -34.36% -27.39% -6.96 9/24/2009 @ $66.99 6 Comments
TrackEveillard 95.69 12/31/2007 Outperform NS $102.05 +0.04% -10.19% +10.23 3/31/2008 @ $102.09 1 Comment
TrackDeutscheSec 87.04 11/12/2007 Outperform NS $125.27 -71.27% -41.44% -29.83 12/3/2008 @ $35.99 0 Comment
TrackWhitman < 20 9/30/2007 Outperform NS $127.20 -19.77% -4.17% -15.60 12/31/2007 @ $102.05 1 Comment
TrackEdLampert 82.92 9/30/2007 Outperform NS $127.20 -98.22% +91.99% -190.21 3 Comments
TrackBillAckman 55.75 9/30/2007 Outperform NS $127.20 -57.51% -41.69% -15.82 5/26/2009 @ $54.05 4 Comments
TrackBerkowitz 86.34 9/30/2007 Outperform NS $127.20 -98.22% +91.99% -190.21 10 Comments
TrackPatDorsey < 20 6/22/2007 Outperform 5Y $170.38 -63.31% -8.13% -55.19 11/9/2012 @ $62.51 0 Comment
TrackJimCramer 85.66 3/15/2006 Outperform 3W $132.29 -41.61% +2.84% -44.45 6/20/2008 @ $77.25 0 Comment

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