#1 - Sears Holdings (NYSE:SHLD)
Sears Holdings (NYSE: SHLD) - The saying “death by a thousand cuts” seems to apply to Sears. This iconic brand, say some analysts, could have been Amazon before Amazon. Instead, it’s finding itself on the verge of bankruptcy, and not just because of Amazon. The retailer has faced self-inflicted wounds that is a cause of annual revenues that have fallen every year since 2007. In fact, Sears hasn’t reported a full-year profit since 2011. Same-store sales have fallen every year since 2012. But let's cut to the chase, the real problem with Sears is the same reason they're still in business, their CEO, Eddie Lampert. Through his hedge fund, ESL Investments, Lampert continues to prop up the company, but not out of altruism. If the company declares bankruptcy, his hedge fund which now owns almost 50% of Sears’ secured debt will be at the front of the line to collect. This surely means that the endgame for Sears is being orchestrated more by a creditor than a CEO. How else to explain that it has sold off revenue-bearing units that have cut off any path to profitability. The company is also not being helped by its ongoing feud with its iconic Craftsman brand. Sears also cut their long-standing ties with Whirlpool Corporation which is a significant blow to their home appliance division. None of these moves suggest a company that is looking to recover.
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- Current Price
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- Consensus Rating
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- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
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