H.J. Huneycutt

Two Bright Spots in Economic Darkness: TD Ameritrade, Sears Holdings

I'm admittedly intrigued by Sears. The stock is priced at a significant discount to book value right now, despite having positive free cash flows in recent years. Obviously, the retail environment has dramatically changed due to the economic crisis, however. Consumer spending is going to weaken over the next half-decade and buying into retail does not seem like a great idea at the moment. Also, from my own perspective, Sears has always seemed kinda junky and they don't seem to have any sort of niche. Yet, so long as Sears could find a way to become reasonably profitable, there's value here.

I'm not sure what to think. They could totally sink in the next decade or this could end up being one of those steals that most people didn't see. My money will just watch this from the sidelines.