NEW YORK (TheStreet) -- Shares of Sears Holdings Corp. (SHLD) are lower by 3.82% to $28.43 in late morning trading on Thursday, after Credit Suisse issued a negative analyst note, suggesting the department store should liquidate its assets while it can, out of consideration for its vendors and shareholders, MarketWatch reports.
Credit Suisse currently has an "underperform" rating and $20 price target on Sears' stock.
Analyst Gary Balter said Sears is generating negative cash flow of $1 billion to $2 billion for 2014. "Unless it sells off real assets while somehow maintaining the cash flow from those assets, this story is not likely to have a happy ending, and that ending continues to depend on suppliers," MarketWatch added.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
The analyst also said three events put supplier confidence in jeopardy: a poor quarterly earnings report for the 2014 second quarter, a lack of new financing options, and the company's own statement that it's not committed to apparel buys for the Christmas season.
"While we don't know where that will end, we end with the same argument we have been using for years now. If the assets are worth that much, liquidate, as operating is taking over $10 a share of value away every year," the note said, according to MarketWatch.
Separately, TheStreet Ratings team rates SEARS HOLDINGS CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: