This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
Sears stock has rebounded more than 43% in the last month, but that does not mean this stock is turning around. Quite the opposite.
We still think Sears is headed toward bankruptcy. If you own it, get out. And if you think management can pull off a miracle, forget it. They can’t.
Money Morning Capital Wave Strategist Shah Gilani told readers back in May about Sears’ epic downfall. He even outlined a strategy to profit as Sears stock ‘lurches towards its deathbed.’ And despite the stock’s recent rally, if you’d followed Gilani’s plan, you’d still be up double digits.
All the reasons for this bearishness are still very much intact. Here’s what he told you in May:
‘Sears Chair and CEO Eddie Lampert’s financial engineering experiment clearly has failed. He ‘Frankensteined’ Kmart and Sears together to form what can only be called a retail abomination. Sears Holdings has lost $10.4 billion since 2011. Excluding ‘one-time charges’ and ‘events,’ the loss is $4.57 billion.’
This post was published at Wall Street Examiner by Money Morning Staff Reports ‘ July 21, 2017.