Analyst's Predictions on Sears Holdings Corporation (SHLD), Pacira Pharmaceuticals, Inc. (PCRX)

Posted March 23, 2017

Sears Holdings Corp. said late Tuesday it lost more than $2 billion past year, and its historical operating results indicated doubt about the future of the company that started in the 1880s as a mail-order catalog business. Sears posted a narrower loss than predicted in the fourth quarter, and it has pledged to lower its debt burden and cut annual expenses by at least $1 billion.

Its total liabilities stand at $13.19-billion.

In recent years, Sears has placed some of its stores into a real estate investment trust (REIT), sold its Craftsman line of tools, and repeatedly raised debt from billionaire Chief Executive Edward Lampert's hedge fund. The company's retail store sales decline was the worst among the top 250 retailers tracked by eMarketer as of November. When Walmart first came in and now they put a lot of people out affecting all these other stores.

Going concern refers to a company's ability to remain in business. But Sears also has faltered because of its management's decisions, including the sale of its more than $30 billion credit portfolio to Citibank in 2003, and a merger with Kmart that tied together two struggling chains. They are operated by Sears Holdings. The CEO has helped keep the ailing retailer afloat by offering more than $1 billion of assistance, including a $500 million loan facility announced in January.

Sears Holdings Corporation (NASDAQ:SHLD) has tumbled 1.95% during the past week, however, the bigger picture is still very bullish; the stocks have advanced and posted positive gains of 20.03% in the last four weeks. "Sometimes multiple retailers to take those large spaces", Bell said.

"They would need to make so many cost cuts, the business wouldn't exist anymore", said Neil Saunders, managing director of retail at research firm GlobalData.

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In recent years, Sears has placed some of its USA stores into a real estate investment trust, put some brands up for sale and repeatedly raised debt from its billionaire CEO Mr. Lampert's hedge fund.

Lampert owned close to 10% of the REIT that paid $2.6 billion to Sears in 2015 for its stores that it purchased, of which many were leased back to the longtime retailer.

A Sears spokesman said Tuesday's report doesn't suggest it won't get a clean audit on its annual financial results, as a going-concern warning sometimes does, indicating repercussions for companies' compliance with credit agreements.

Meanwhile, Sears continues to burn through more than $1 billion a year.

The company said an inability to generate additional liquidity might limit its access to new merchandise or its ability to procure services.