The following video is part of our "Motley Fool Conversations" series, in which analyst Jim Royal and industrials editor/analyst Brendan Byrnes discuss topics across the investing world.

In today's edition, Jim talks about Orchard Supply Hardware, a company recently spun off from Sears Holdings. He describes one thing that many articles on Orchard have failed to notice and that could leave the company's cash flow really hurting.

Brendan Byrnes has no positions in the stocks mentioned above. Jim Royal has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend The Home Depot and Lowe's. 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.