Tech Ticker's interview with Jeff Matthews completely slams the new CEO Lou D'ambrosio hired by Eddie Lampert at Sears Holdings (SHLD). The problem is that the whole interview focuses solely on SHLD as a store based retailer. That isn't the goal of this company and it completely highlights the misunderstanding of the goal by most of Wall Street.
Eddie has longed seen this company has having valuable assets including real estate and brands. The value in the retail concept is to spin off cash. In fact see the article that we just wrote last week for Seeking Alpha: Is Sears Holdings Becoming a Tech Stock of Just a Future LBO?
Maybe Mr. Matthews is correct that they need to focus on the retail store concept, but he seems delusional that spending up to $30B on the concept would the best way to go. Seriously? The company would be broke at that point. The goal is to increase shareholder value. It's not to make SHLD a top retailer that can compete with Wal-Martt.
He does make an interesting statement that his connections say that Eddie is very focused on the tech side including the website. Bingo!
Its clear that the market still doesn't understand the plan at SHLD. Thats what we like to see in our investments. They are always going to be undervalued in those cases.
Link to video.
Disclosure: Long SHLD. See Disclaimer page.