NEW YORK (TheStreet) -- Shares of Sears Holding Corp. (SHLD) are down 7.80% to $39.47. On Friday, the retailer said it was considering selling as many as 300 of its stores to a REIT as a means to generate much-needed cash, and the stock price soared Friday's market close. That ended today, Barron's reports.
The stock jumped 31% on Friday to $42.81, its highest closing price since April.
Wall Street's outlook on Eddie Lampert's struggling store chain has been bearish for some time. As of Oct. 15, the short position in the stock amounted to 65% of the float. Short covering could account for some of today's surge. There's also likely some profit taking, given that at one point Friday, Sears had climbed as high as $48 a share, Barron's said.
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But Barron's and the New York Times both weighed in recent days. In this weekend's edition of Barron's, writer Vito Racanelli warned that a REIT spinoff of a retailer that has consistently negative cash flow "is a stretch." A day earlier, DealBook writer Kevin Allison argued that Sears's prospects remain dim, Barron's noted.
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: