Sears Holdings (SHLD) was supposed to be the next Berkshire Hathaway. It does not seem to be working out that way. After a poor earnings performance and rough same-store sales, SHLD hit a new 52-week low of $123.54 today. The stock’s 52-week high was $195.18.
Putting Sears and K-Mart together was going to be a good idea. But, then SHLD management found out no one wanted to shop at either place. It’s tough on investors. Even if the company ends up with ten retail chains, if they are not popular, it doesn’t help much. Maybe the company could buy Sharper Image.
The news from Target (TGT) and Lowe’s (LOW) has sent all of the retailers down. It does look like the beginning of a retail recession, and SHLD appears to be leading they way down.
Douglas A. McIntyre