Mike Arnold
Long only, small-cap, tech, growth at reasonable price

A Sale Is Going On At Sears Hometown And Outlet Stores

There is an incredible sale going on in shares of Sears Hometown And Outlet Stores (NASDAQ:SHOS). I thought shares were cheap at $28 based on the "asset-light" dealer owned/franchise operating model, and I think the shares are becoming even a better bargain as they trade lower.

(click to enlarge)

Today, the market says SHOS is worth $530 million. I think it is worth considerably more. Consequently, I have begun building a position at sub-$25 prices and will continue to buy shares at these levels or lower, absent any shocking news coming out of the dealer/franchisee meeting occurring this week.

There appears to be an unfair association with investors blindly commingling SHOS with Sears Holdings Corporation (NASDAQ:SHLD)....

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details