New Capital
Contrarian, deep value, long/short equity, special situations

Sears - 3 Investment Cases

There are three main investment themes when it comes to value of Sears Holdings (NASDAQ:SHLD):

- Bear case: Sears is dead as traditional retailer;

- Bull case: Sears has valuable real estate and brands portfolio which surpasses its enterprise value multiple times;

- CEO case: Sears can be transformed into successful cross channel retailer.

In this article I will cover all three cases and make suggestions of how a prudent investor should think with regards to investment in Sears.

Bear case: Sears is dead as traditional retailer

This case is well covered by popular media and loudly spread every time Sears reports earnings, quite often proclaiming Sears to be in a 'death spiral' with deserted stores and sales...

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