NEW YORK (TheStreet) -- Shares of Sears Holding Corp. (SHLD) are up 23.05% to $40.20 in pre-market trading after it was reported that the troubled retailer said it was exploring the conversion of 200-300 stores to a real estate investment trust (REIT) and offer it to shareholders through a rights offering to raise cash, according to Reuters.
The company was looking to monetize a portion of its real estate through a sale-leaseback transaction, it said in a regulatory filing.
Sears has been trying to raise cash to get it through the build-up to the year-end shopping season and it has repeatedly turned to CEO Eddie Lampert and his hedge fund, which together own 48.5% of Sears, Reuters noted.
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Sears estimated flat comparable sales and an adjusted loss before interest, taxes, depreciation, and amortization of $275 million to $325 million in the quarter ended Nov. 1. The company will report results on Dec. 4.
As of Nov. 1, the company had about $330 million in cash and $234 million under its credit facility.
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:
"We rate SEARS HOLDINGS CORP (SHLD) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."