Continuing with updates of some popular pix of the past, we look at Sears Holdings (SHLD), last reviewed in late December with a chart that showed the top two panels above.  The vertical line in the relative return chart marks that date; you can see that the stock now is exactly where it was then versus the market.

The middle panel is also marked with a vertical line, showing the trailing free cash flow that had been reported at the time of the previous posting.  Each of the two quarters since then have shown a deterioration from the year before, so the downward trek in free cash flow proceeds apace.

When the chart was first published, I got some feedback that the real story was the shrinking of the share count, so I included that at the bottom.  You can see that there has been a substantial reduction during the last five years, but that doesn’t help when the business appears to be deteriorating even faster.

About the best thing the company has going for it now is that it’s deemed a non-factor by shoppers and investors alike.  A mere six recommendations appear on Bloomberg (three holds and three sells), and only three larger firms even cover it.  In the wake of the the recent reports that caused a free-fall in estimates, Gary Balter of Credit Suisse said, “We believe these results point to the increasingly dire prospects for Sears.”

Any good news could help the stock, but what good news could it be?  For those who thought that either the value of the real estate or the power of the brands could be unlocked, the news has been bad and getting worse.  My December posting talked about the need “to do something dramatic sooner rather than later.”  Ditto.  (Chart:  Bloomberg terminal.)