The Most Confusing Turnaround Story I've Ever Seen

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin discusses the controversial subject of Sears' (Nasdaq: SHLD  ) turnaround story. The company has gone on a tear recently, climbing 80% in just three months. However, this blockbuster performance comes after a massive $3.1 billion loss for 2011. Bulls are quick to call Sears misunderstood. Many believe that with its huge asset base in real estate it can continue to create real value down the road by selling or leasing space.

Austin disagrees and thinks the company seems unfocused in its turnaround. To top it off Sears announced its plan to close 62 stores in order to cut costs. This move comes after it already announced the closure of 120 stores. This seems much more like a company fighting the tides than make its own waves.

Sears is an iconic American company that seems to have lost its way. There are other incredible companies with still-sterling brands that haven't lost their touch, though. You can uncover three of them in our special free report: "3 Companies Set to Dominate the World." The report won't be available forever, so we invite you to enjoy a free copy today. You can access it by clicking here. Enjoy, and Fool on!

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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