Opinion on  Sears Holdings Corp (SHLD)     Sector: Services  >  Industry: Retail (Department & Discount)
A Speculative Bet on a Pro When He's Down

SHLD seems to be stabilizing around $130 mark. This is the time to bet on a Pro like Eddie Lampert. You don't buy into the hype when Wall St's going ga-ga and saying he's the next Warren Buffet. You give him the benefit of the doubt when he's down.

Mr. Lampert has certainly earned that with his past performance. He may be a hedge fund manager, but he's no fly by the seat of your pants trader. I believe he knows what he's doing.

This is a speculative pick for me because:
1. It's a retailer. And a crappy one at that. These are hard businesses to run, nevermind turn around.
2. I'm not so confident about the real estate assets either.

Eddie has consistently said that he will runs Sears as a profitable business and I do believe he will. He already turned Kmart and Sears cash flow positive and I believe he will find ways to achieve high returns on those cash flows.