This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Short-Squeeze Opportunities for 2011

Sears Holdings

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

If retail stalwart Sears Holdings (SHLD - Get Report) seems to continually pop up on searches for attractive short squeeze opportunities -- perhaps it's because the company is just that. Shares of Sears are down just 10% on the year following a rally last month that sent shares 13% higher. Now, with a short ratio holding at 13.9, this company could finally be getting closer to a pop.

From the costly and questionable integration of Kmart to a broad-based pullback in retail spending, Sears has faced a number of major challenges in recent years. And while the company is still unable to deliver consistency to investors, the firm is moving in the right direction by finally leveraging its powerful portfolio of exclusive brands across its sales channels. With consumer sentiment pushing higher toward the end of 2010 (and bringing retail spending along with it), expect Sears to be one of the biggest beneficiaries of the return to "normalcy."

The Legg Mason Value Fund (LMVTX) is one of Sears' biggest mutual fund holders. The fund's other stakes include IBM (IBM) and Aflac (AFL). Bruce Berkowitz' Fairholme Capital also likes the stock, which makes up 9.4% of his total portfolio, as does Tiger Global Management, which initiated a new position in Sears in the most recent period.

To see this week's trades in action, check out the New Year's Short Squeezes portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on
4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ALR $40.18 -0.72%
BKS $11.18 -2.40%
SHLD $14.02 -4.80%
AAPL $93.21 -0.44%
FB $117.80 -0.22%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,048.23 -2.89 -0.14%
NASDAQ 4,714.6790 -10.96 -0.23%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs