NEW YORK (TheStreet) -- Like fellow foot-traffic rival Radio Shack (RSH) after its Super Bowl commercial, Sears Holdings Corporation (SHLD) has soared in recent market action. And like the Shack after the glow of its Super Bowl commercial dimmed, the stock price of Sears Holdings should be falling soon on unrealistic expectations.
Sears' stock price is up primarily due to an insider buy and an article in Forbes touting that Amazon.com (AMZN) should buy the struggling retailer. Here are just some of the many, many reasons why Amazon should not purchase a single share of Sears Holdings.
Forbes argued that Amazon should buy Sears Holdings to convert its stores into distribution centers that create a physical presence for the Internet retailer.
Common sense generally works best in economics so how about the obvious? If the Sears stores have such great potential as distribution centers, how come neither Federal Express (FDX) nor United Parcel Service (UPS) has pounced already?
After all, it was not long ago that Sears management was pitching its real estate as ideal locations for data centers. That didn't work.
I think there is little value to any of the real estate that Sears owns. There is one billion square feet of vacant real estate in the United States with tons and tons of retail stores being emptied by the collapse of Dots LLC, Coldwater Creek, RadioShack and JCPenney (JCP), among others.
In a November 2012 interview with Fortune, Bruce Berkowitiz, the second largest shareholder of Sears, stated that, just based on its real estate, Sears was a $160 stock, which is now off by an epochal margin.