The Death of Sears Holdings Is Awfully Premature
Today Sears Holdings (SHLD) provided a Q4 update that was very disappointing to the markets. Exactly why it was that disappointing or surprising goes to show how few investors exist these days. Too many traders jump on the headlines as perceived grossly negative and begin pounding the stock down. At the end of the day, the stock was down an amazing 27%. What was so devastating about today's news that sunk the stock? Well, honestly we're still not that sure. Comp sales are down 5% QTD and EBITDA will be roughly half of last year. Anybody paying attention should've known the numbers wouldn't be that great. The other news was that up to 120 stores would be closed. While sounding negative, that has been the plan at SHLD for a very long time. The weak stores are closed so that the inventory can be turned into cash and the stores can be sold or leased. The biggest question one has to answer is why do investors even care that much about retail sales. Isn't the stock...