Sears Holding
By Steve Abraham on Sep 18, 2007
Im talking here about Sears Holding, SHLD. This has been a Jim Cramer favorite for a couple of years now. I like the stock here for a couple of reasons: rate cut will help retailers, the stock has lost its luster, and it looks like its forming a double bottom. This company is well managed and has valuable real estate holding. Average Yahoo price target is $175. I like the risk/reward here. Here is the chart.
5 Responses to “Sears Holding”
You make a fair point, Aaron. I got stopped out today anyhow. I still think there is value here but in this market there is easier money to be made.
Yup, I exited today for a severe loss. Market has not yet discounted the weakening consumer apparently.
The biggest risk/reward issue from Sears is it’s upsurge of Mexican customers. They buy in high quantity but expect below retail prices. Mean while pushing out it’s typical customers, who expect higher quality and dollar products, instead of shabby sales items. Wizetrade shows a step down fall.
I don’t want to jump the gun or say anything stupid, but I think this kind of bad stock can lead into bankruptcy, unless of course the U.S. government pulls them out in one of their great ol’ american saves. Stay far far away.
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The technicals look pretty good. The fundamentals on the other hand, not so good. The company is mainly just a play on Eddie Lampert right now I think. The retail side of things at Sears and KMart are quite dismal. I can’t bring myself to make this trade on the technicals alone, though it could provide a nice quick bounce.