Sears Holdings Corp (Nasdaq:SHLD) seems to be enjoying a classic short squeeze for now. Many analysts are on public record about the negative cash flow implications. Management seems oblivious to the entire conundrum.
Check out the recent skirmish in the Canadian market where Sears has long been established and trusted. They just announced huge price reductions for about 5,000 items. Folks that’s a lot of price reduction. So why shoot your foot off?
Target will be opening up 100’s of new stores within the next year. Wal-Mart is already a major factor putting up huge stores everywhere and anywhere. So the best that management can come up with is to cut prices. No merchandising strategy. No customer experience strategy. No …well no strategy. Just cut prices and hang on.
Black Swans ahead!
George Gutowski writes from a caveat emptor perspective.
- Will Wal-Mart Help You Retire Rich? (fool.com)
- Sears Canada announces new pricing strategy (business.financialpost.com)
- Is Sears A Bankruptcy Candidate? (SHLD, WMT, TGT, OSH) (247wallst.com)
- Why Amazon Prime Is the Future (fool.com)
- Sears Holdings Shares Got Crushed: What You Need to Know (fool.com)
- Sears Holdings Shares Popped: What You Need to Know (fool.com)