This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

New CEO Lampert Ready To Save Sears From Sinking - Research Report On Sears Holdings Corporation

NEW YORK, January 24, 2013 /PRNewswire/ --

Sears Holdings Corporation (NASDAQ: SHLD) [ Full Research Report] (1) recently announced the resignation of CEO Lou D'Ambrosio, whose his two-year term continued the company's five consecutive years of declining revenue. The new CEO, Edward S. Lampert, has increased his stake from 56.2% to 56.5%, causing the stock to rise 41% over the last 12 months. Morningstar analyst Paul Swinand comments on the rise on the stock, "[Lampert]'s buying again so it builds confidence and fear for anyone who is short the stock." Lampert is designated to take over the position of CEO on February 2.

The company's earnings have been steadily declining at a rate of 37% annually for the last five years. With a negative cash flow of - $248 million and a profit margin of -7.1% in the last 12 months, the company's earnings per share for the fiscal year ending in January 2013 are expected to be around - $2.64, and next year's earnings per share are projected lower at - $3.60 per share. While the company's stock may be rising now due to Lampert's increased stake in the company, the stock price should continue its declining state as the company continues to lose money and as the rate of negative earnings growth increases.

Former CEO D'Ambrosio had previously worked at a telecommunications company called Avaya and International Business Machines, and with his experience, he boosted the company's ecommerce initiatives. Sears and its competitor, JCPenney, have lost half of their market share to Amazon, the online retailing giant. This showed the crucial need for improved ecommerce efforts from the company, and eventually led to the launch of ShopYourWay.com, the company's free membership program and shopping community.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs