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.

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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)....

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