This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Lands' End is No Bargain in Trading Debut

Stocks in this article: LE SHLD

Sears has not only seen its revenue decline as it has shed assets - almost $36.2 billion fiscal 2013, compared to nearly $39.9 billion for the same period a year prior - but also its adjusted Ebitda plummet: negative $337 million in fiscal 2013 as compared to $536 million to the positive in 2012.

And Sears' drive to monetize assets is based, in part, on its cash burn. This year it said it plans to raise total liquidity of $1 billion, half of which came from the Lands' End dividend, to cover cash interest expense, pension obligations and capital expenditures.

Yet, despite investor fears about the separation, Sears still has significant assets. Among assets Sears has left to monetize if it needs to is a real estate portfolio conservatively estimated at over $2 billion; Sears Auto Center; its warranty business; the 51% stake in Sears Canada that has a market cap of C$1.7 billion ($1.5 billion); as well as the Craftsman, Diehard and Kenmore brands.

The Kenmore, Craftsman and Diehard brands would generously be valued at about $1.1 billion after paying off the debt backed by those assets, according to analyst Mary Ross Gilbert of Imperial Capital.

The warranty business, on the other hand, might be worth about $800 million. But Gilbert said Sears Holdings has not mentioned the warranty business as an option recently, so there may no longer be plans to monetize it. And Sears Auto Center has a valuation of approximately $666 million, the analyst said in a June report.

Gilbert said, however, she doubts Sears Holdings will spin off Kmart, as it does not make money. "I can't see that scenario," she added.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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