It has been quite a year for Sears Holdings Corporation (NASDAQ:SHLD) spin-off of Sears Hometown and Outlet Stores (NASDAQ:SHOS) ("SHOS or "the company") in terms of the market's assessment of SHOS's value. Shares began trading in October 2012 at around $29/share, then rose to nearly $56/share (a gain of 93%) in June 2013 before experiencing a swift and substantial decline to its current ~$28 quote (a decline of 50%).
Mr. Market is clearly getting the price wrong, for underlying value could not have gyrated nearly as much as the share price in the last year.
In my view, SHOS shares are worth significantly more.
(click to enlarge)
SHOS has the unfortunate quandary of being associated with...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|