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Wall Street Research : What Is Eddie Lampert Thinking About Sears?

|About: Amazon.com, Inc. (AMZN), COST, EBAY, JCP, M, SHLDQ, WMT

Apr. 9, 2019 8:47 PM ET

|About: Sears Holdings Corporation (OTCPK:SHLDQ), AMZN, JCP, EBAY, M, WMT, COST

Summary

Eddie Lampert will take Sears (OTCPK:SHLDQ) public again.

Sears plans to shrink the size of existing Sears stores to smaller and more profitable version.

Sears is heavy investing and doing business with Amazon and other major retailers.

Lampert says he plans to shrink the size of existing Sears stores and Sears Holdings Corporation (OTCPK:SHLDQ) will open more small-format locations and make more space in stores to selling tools and appliances in Sears’ Shop Your Way loyalty program.

“Shop Your Way has always been our answer for how we’re going to be more relevant,” Lampert told the Journal.

ESL is already the largest shareholder in Sears Hometown and Outlet Stores with 58.8 percent of its stock as of Dec. 6, according to a regulatory filing. The retailer sells appliances, hardware, tools and lawn and garden equipment under the Sears Hometown, Sears Hardware, Sears Home Appliance Showroom and Sears Outlet brands.

Transform Holdco offered $2.25 per share, which it said was a 23.6 percent above the price over the five days leading up to its offer.

Sears Hometown and Outlet Stores say Eddie Lampert wants to buy the 40 percent of the company he doesn't already own for about $21 million.

Next step for Eddie Lampert is to bring Sears Holdings Corporation (OTCPK:SHLDQ)

and buy more shares to increase investors confidence. We think that a huge buy back of shares will drive Sears Holdings Corporation (OTCPK:SHLDQ) above $2 a share and get compliance notification from NASDAQ.

This is a great opportunity to BUY this stock at this cheap levels.

Wall Street Research believes that with smaller stores, new partnerships with Amazon ( NASDAQ:AMZ) converting the stock to public and being more profitable can take Sears to new high levels at $5 - $10 a share within a year.