Stock price when the opinion was issued
Sears is taking itself apart ultimately either to distribute assets to investors or to continue to milk it for capital. No evidence that they are doing any different in Canada. It gets harder to sell the company when you have gotten rid of your prime assets. Sears is becoming a smaller market company.
If looking for a short-term trade than your call has to be threefold. 1.) More dividends coming out of the company to get rid of its cash on the balance sheet. 2.) The US parent comes in and buys it. 3.) More real estate liquidation, which would highlight the value that is inherent in the company. Thinks the value has already been had in the company, so there is a bit more risk now.
It is not a play on retail but on real estate. All the best locations are being sold off. What they have been doing is shrinking. Their best locations are being sold off. The funds are going to the US. They don’t plan to reinvest in stores because they will pay out a big dividend.