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July 12, 2005

Sold Half of Sears Holdings

Just a brief note to let everyone know that I sold half of client and personal holdings in Sears Holdings as the stock crossed $160 on Tuesday afternoon. I still think this momentum stock can go nicely higher as traders react to news flow including asset sales, better same store sales against easy comps and margin expansion due to better-than-expected cost savings. However, since I had an initial target of $160, I want to show discpline and ring the register given the huge gains in the shares since they were purchased. The stock is still held by all clients including in my own accounts (just like everything clients' own) so we still want it to go higher. If the shares were to pullback sharply, buying back the positions sold will be considered. The new lower commission structure at Schwab makes these sort of trades easier.

Posted by Steve Birenberg at July 12, 2005 06:16 PM