Nova Law

Sears Holdings: Due for Underperformance?

I find this posting from Cara to be rather odd.

Revenue has gone from 17 billion in 2004 to 49 billion in 2006.

EPS in '04 was 2.50, in '05 was 11.00, in '06 was 6.17, and according to S&P in '07 is due to be about 9 dollars.

In sum, SHLD actually has earnings, revenue, and a business model.

In the past three years it has grown its share price from 30 to 166, providing a bonanza for the shareholders.

While any company isn't perfect, shareholders have been richly rewarded over the last three years by SHLD's management. And Cara wants to take it to the woodshed? Come to think of it, Cara's post isn't just odd, it is foolish.

Things could be worse, I guess, Cara could have annointed SHLD his can't-miss "Stock of the Year 2007" and odds are it would have tanked 15%.