Stock-market experts we are not. So we definitely can't figure out why Sears Holdings Corp.'s stock is consistently rising.
Sears had a less-than-great holiday season and is closing about 120 stores. Analysts expect more closings, we haven't read anything anywhere that gives us hope of the retailer turning things around and competing with Walmart or any other formidable discounters.
Nonetheless, the stock keeps rising, close to 50% so far this year, because Chairman Edward Lampert is buying shares, and now reportedly owns 59% of them. An interesting Wall Street Journal article also points out that Goldman Sachs clients who invested in Lampert's fund a few years ago have a vested interest in Sears' health because many of them will end up cashing out this year.
Comments on the WSJ article don't seem too hopeful about this investment, and we have to agree with them. Lampert has been trying to turn Sears and Kmart around for years, and not much has happened. It's probably going to take more than the Kardashians to save the day, as they aren't the first celebrities the retailer has teamed up with.
Do you think an investment in Sears is actually a smart move right now, or is the retailer doomed to never compete with its peers?
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
