Sears Holdings Story

SHLD -- USA Stock  

null 0.37  0.0351  8.75%

Macroaxis News
By Nathan Young

You heard correctly folks, Sears posted better than expected numbers causing the stock to rise, giving investors a little hope for a turn around. However, do not hold your breath as the current state of the company still warrants caution. As the Grinch song states, many will not touch this with a thirty nine and a half foot pool, and for good reasons.

Sears Surprises Wall Street with a Beat and Street Estimates

The company is still bleeding money in a critical way and the current retail environment is not conducive for a company such as Sears. So let us start with the first issue, and that is the store is outdated and has no online footprint compared. The new generation of people having families no longer shop at Sears and probably have no plan to. Sears should have stepped up their game awhile ago, but now it may just be too late as Amazon and eBay continue to put pressure on the online market.

Secondly, you have to wonder how the malls who have this company as an anchor store and who could fill there stores or would want to fill their stores. Malls are struggling and this could put even more pressure on that particular market. Stores are leaving the traditional mall at a rapid pace and this could prove to push real estate owns into critical territory.

Lastly, the recent numbers could just have been a dead cat bounce, meaning the company is just giving its last breath as falls asleep for good. It is hard to ignore the overall surroundings and the fact this may never change. There are many better investments out there and we all know that, but Sears is still trying and with all the negative pressure, we have to reward them for effort.

If you are looking to get into retail, be very cautious as the markets have already stated that we have too many brick and mortar locations. Look at sector ETF products to help eliminate company specific risk and give you a more broad exposure. Of course there are companies like The Home Depot who are blowing their competition out of the water, but those are few right now. Overall, it still may be a wise move to just let the market shake things out and realign what needs to be realigned.  Reach out to your investing professional and he can help give you suggestions based off your current portfolio. Sears may be in its final days, but the recent numbers gives investors that last glimmer of hope.

Sears Holdings Revenue

Acquisition by Thomas Tisch of tradable shares of Sears Holdings subject to Rule 16b-3

Sears Holdings Corporation insider trading alert for grant of 8% senior unsecured convertible pik toggle notes due 2019 by Thomas Tisch, the corporate stakeholder, on October 25, 2019. This event was filed by Sears Holdings Corp with SEC on 2018-03-22. Statement of changes in beneficial ownership - SEC Form 4 [view details]   

About Contributor

Nathan Young
   Nathan Young is a Senior Member of Macroaxs Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States. View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Sears Holdings Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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Sears Holdings is currently under evaluation in book value per share category among related companies. Book Value per Share (B/S) is can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing effects of liabilities. In other words a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of liquidation.
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