Sears Holdings Corp (SHLD)

Back in September I choose Sears Holding Corp to underperform and this is the main reason I did so. The Wife and I have walked through Sears a few times here and there and everytime we walk through, she always ask me (tells me), "Do you think Sears is going out of business" or "I think Sears is going to go out of business." She then usually goes on to tell me that there is no one in the store, too many employees standing around and the sale prices seem to be going out of business prices with sales on everything all the time. They have been doing promo's giving away gifts for a couple of months also.

After her input, I could not help to think she is right and I know we haven't been spending our money there also. From the few walk throughs, looks like a dying breed. I decided to ask a handful of people about their impression of Sears and if they shopped there and based of the pool of people I asked, the majority either did not shop there or mentioned similar views of what the wife had expressed.

As far as Kmart goes, I personally do not like the store and have not been to one in years, nor do I know anyone that shops there or at least admits it. Also the stores around the area have been disappearing, closing, or converting to Sears stores.

So while I am not looking at the financials on my choice of underperform (as I recommend you do look at those if you are considering real money here), my choice is strictly on observation and my impression of the company and visits to the stores.

Sears and K-Mart never became the cash cows Lampert imagined they would. The underlying real estate has only lost value. Underinvestment means these retailers will only fall further behind in an extremely challenging sector.

Crushing debt, K-Mart is awful. Too much debt, and trading at roughly a billion times earnings.

Ugly future

I love shopping at Sears, here in Daytona Beach the men's bathroom is a hangout for pedophiles lurking on unsuspecting little boys. Oh and the Kmart 3 blocks away has all the best products from the 1990's and don't forget about the "blue light special"....no pun intended.

Technical Pullback Likely

Sears is awful. Real Estate is terrible. K-mart ok, but not good enough. This is a $50 stock

The forward P/E is 52 for Christ sake

cnbc.com 20 Stocks with the Biggest Potential To Drop target price: 46.4

why is this 63 dollar

this is headed to 55 sooner then later

Eddie Lampert = genius. Buy shares with declining revenues to pump. AZO style. The pump is strong with this one. Must find dumpies before owned by Walmart.

Dog piling on the Lampert.

Lampert has no idea what he's doing with this mess.

Overwhelming debt.

Barron's published a great article but by simply walking in the store you realize you would be better served to have gone to Best Buy for electronics/appliances or Home Depot/Lowes for anything home related. Deteriorating brands that will have little value in a breakup/asset sale. Lands End is a valuable brand but makes no sense in Sears lineup. Do you even know where a Kmart is in your community and if so, do you shop there? A hedge fund running one of the nation's largest retailers is a scary proposition as the short term profit vs. long term growth goals do not seem to be aligned.

Poor management and getting hammered by BBY and others.

I wont say anything, but this will:

http://www.smartmoney.com/Investing/Stocks/Trouble-at-Sears-Holdings/

enough said. UNDERPERFORM - Lambert is going to run out of buildings to sell.

Not enough customers in these stores to get up a square dance , but room enough in the aisles to swing away. Where are there numbers coming from ?? Went underperform at a bad entry point , but will look good when this trades in the single digits.

Outdated stores; Outdated company; They need an overhaul to compete long term.

There is less momentum, less volume, and less buying going on. We are in the last part of this rally.