IB Net Payout Yields Model

Sears Holdings: What Investors Are Missing

After another supposedly weak quarter for the company, the stock of Sears Holdings Corporation (NASDAQ: SHLD  )  had a surprising rebound. The retailer, in the middle of a shift toward online sales and asset spinoffs, had some interesting takes that the typical bearish investor may have missed.

Sure the company spent the quarter spinning off Lands End and this, along with store closures and weak Sears Canada results, sent sales down over the prior-year period. Even worse, adjusted EBITDA declined further in the first quarter to reach a loss of $221 million, compared to a loss of $26 million last year. Despite these numbers and a horrendous domestic retail environment that resulted from weak consumer spending and bad weather, Sears Holdings had some relatively constructive numbers hidden in the details.

Read the full article here.

Disclosure: Long SHLD. Please read disclaimer page for more details. 


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