Where America Shops!

In my last post, I wrote of the correlation between Sears fortunes (or the lack thereof) and Amazon.

To wit -
But I was struck by something. So, with no further adieu...


Remember, Sears was found in 1886. In fact, they went public in 1906, the FIRST major retailer IPO in history! So, naturally I wanted to know what was lurking behind the left side of the chart. What I found was more than a bit surprising...

First, some additional backstory. Although there should be 100+ years of Sears stock history, I couldn't find a chart! What I did discover (which I actually already kind of knew) was that in 2004, Kmart, of all companies, bought Sears and the whole shebang was rolled into Sears Holdings (SHLD).

Sears Holdings is run by Eddie Lampert, a Howard Rourk like character and billionaire. He has staked a considerable amount of his reputation and personal wealth on the company albeit if (or when) it fails, he won't be lining up for food stamps - unlike many of his employees.

Thus, the missing left side of the chart is somewhat abbreviated. And also quite telling. But first -


Yes, this chart matches up quite nicely with the one above although the 'Dead Cat Bounce' of 2010 appears more relief.

Below is the full chart -


Yeah, I noticed it too. Seems Eddie may have been on to something with that merger, at least for a little while. Sears rose from the low $20's to over $150 in 4 short years. Pretty impressive!

But then, the market interceded - the Great Recession  (the right circle). Which is where the Seeking Alpha folks decided to begin THEIR chart. Can you blame them?

Next time, we'll focus on AMZN and its meteoric rise...






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