Out Fox The $treet

Sears Holdings continues moving forward with unlocking value via the sell and leaseback of real estate assets. The stock continues trading substantially below the value of the real estate. The stock is attractively priced at $40, but the company needs to show more progress towards reducing cash burn with the Q1 earnings report on June 8. Back in April, Sears Holdings (NASDAQ: SHLD ) announced several agreements regarding selling real estate assets to a REIT and several joint venture partners. The recent S-11 filing for Seritage Growth Properties provided key details, including the stores involved and the percentage of the locations that already have non-Sears leases. Some of the details including the involvement of General Growth Properties (NYSE: GGP ) and Simon Property Group (NYSE: SPG ) in the JVs and the real estate valuations were encouraging. Read the full article on Seeking Alpha. Disclosure: Long SHLD. Please review the disclaim...

The main theory for years has been that Sears Holdings ( NASDAQ: SHLD     ) would eventually take the vast real estate holdings and turn the company into a profitable real estate investment trust to match the likes of General Growth Properties ( NYSE: GGP     ) or Simon Property Group  ( NYSE: SPG     ) . The shorts always focus on the weak retail operations and the longs forecast what the real estate would be worth under new tenants. Most investors might be surprised to find that Sears is further along than they think on the path to redeveloping prime mall lots. The company has new concepts that involve greatly reducing the footprint of the existing Sears or Kmart stores while attracting new tenants that General Growth and Simon can't accommodate with prime malls nearly 100% leased. Read the full article here . Disclosure: Long SHLD. Please review the disclaimer page for more detail.

Anybody following Sears Holdings ( NASDAQ: SHLD     ) over the last few years knows that several major investors have proclaimed that the value of the real estate holdings vastly exceed the current stock valuation. The rub with Sears remains that the retail operations are difficult for the average investor to separate from the valuation of the assets that go far beyond the real estate holdings. Investor after investor proclaims the company worthless due to a lack of profits from the retail operation, but the company has a vast array of assets worth billions upon billions that are hidden. Read the full article here . Disclosure: Long SHLD. Please review the disclaimer page for more details.