Tuesday, January 3, 2012

Sears (SHLD) Crushed in 2011

Sears Holdings Corp. (NASDAQ:SHLD) got hammered in 2011, falling to a 52-week low on December 30, closing at $31.78.

The trading range of Sears shares for 2011 were $31.76 to $94.79.

After dismal Christmas sales, Sears announced it would be closing a number K-Mart and Sears stores going forward, pushing the share price of the company down, in a year the retailer would like to forget.

Analysts have been reacting negatively to the poor performance of Sears, downgrading the company even further.

Credit Suisse (NYSE: CS) lowered its price target on Sears to $20.00. They have an "Underperform" rating on the company.

ISI Group reiterated its “Sell” rating on Sears Holdings Corp. They have a price target of $25.00 on the company.

Goldman Sachs (NYSE: GS) also reiterated its “Sell” rating on Sears Holdings Corp.

Similar to Bank of America (NYSE:BAC), the problem with Sears is there simply isn't any plan in place which would boost growth for the company.

Betting against Sears in 2012 should generate some significant earnings for investors.

No comments: