Sears a REIT?
Speculation that Sears Holdings (SHLD) is transforming into a REIT was said to be the potential cause for stock to close up over 6% today. I recommended reading the Stone Fox Capital article which brought up the REIT question, if you haven't already. Stone Fox Capital sees great upside in the stock for those with a long term horizon.
From the article:
"Remember SHLD only has a $5.6B market cap while Simon Property Group (SPG), a leading property leaser, is worth $33B. SPG has a lot less real estate than SHLD controls.
In my earlier article,
I showed how brands similar to ones owned by SHLD were worth over $19B.
That's a combined value of $52B if SHLD was able to build a successful
REIT and grow the brands. This value might seem lofty for now, but SHLD
has other untapped potential including brands not even analyzed, like
Lands End."
Clearly Sears is starting to make some notable moves beyond the large share repurchase program to create shareholder value. It will be interesting to see the company's transformation process over the next several years.
