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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...

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