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

Amazon Won't Touch This Real Estate With a 10-Foot Pole

For about 40% of the over $13.9 billion invested in constructing its chain of warehouses, Amazon could write a check to cover the combined market cap of Sears, RadioShack and J.C. Penney.

But Amazon has apparently ignored the analysis of Bruce Berkowitz of Fairholme Fund, who claimed in a Fortune interview in November 2012 that Sears' real estate was worth at least $160 a share. That would put the market cap of Sears closer to $14 billion than the current $4 billion.

But with one billion square feet of vacant commercial retail space across the United States, Amazon and the rest of the market clearly do not agree about the hidden value.

That should also keep investors away from retail stocks touting undervalued property. Location is critical in real estate.

Must Read: Jim Cramer's 6 Stocks in 60 Seconds: CVX SNN NSC RDS.A P AOL

If a store has failed, that is a good indicator that the setting is not alluring for either shoppers or investors. The revealed preference of consumers is obviously not to patronize that store in that locale. It's a glaring economic indicator that should keep investors away from failing retail chains like Sears, RadioShack and J.C. Penney.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Jonathan Yates has written for numerous publications including Newsweek and The Washington Post. He is a former general counsel for a publicly traded corporation. Much of his career was spent working on Capitol Hill for Members of Congress in both the House and Senate. He has degrees from Harvard University, Georgetown University Law Center and The Johns Hopkins University.
2 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
Only $9.95
14-Days Free
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
AMZN $532.03 0.12%
SHLD $21.44 0.00%
AAPL $122.77 0.00%
FB $94.20 0.03%
GOOG $627.26 0.00%


Chart of I:DJI
DOW 17,440.59 -127.94 -0.73%
S&P 500 2,067.64 -12.01 -0.58%
NASDAQ 5,039.7760 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs