Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Sears Holdings Corp. (NASDAQ:SHLD) soared 34% early Friday after the beleaguered retailer announced in an SEC filing it is exploring the possibility of creating a real estate investment trust to raise cash.
So what: Specifically, the filing says 200-300 stores would be monetized through a sales-leaseback transaction. Sears would continue to operate in those stores, which would be sold to a newly formed REIT. Without offering specifics, Sears states such a sale would result in "substantial proceeds" to the company and enhance liquidity.
Now what: For perspective, however, Sears did note the purchase price it received last month for selling its full-line store in Cupertino, California was $102.5 million. Of course, that's not necessarily indicative of the individual value of each of the 200-300 stores referenced above, but does lend credence to last year's reports that Sears' top 350 owned and 50 leased properties were worth at least $7.3 billion. Considering Sears' entire market capitalization still sits below $5 billion as of this writing, it's hard to blame the market for bidding up shares today.
Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.