Apparently Sears is going through a midlife crisis. It’s aging, but it wants to be hip. Sears Holdings Corp (SHLD) is going to start offering movie and TV show downloads.
Is this really going anywhere? Apparently Sears is pretty serious. They have partnered with Sonic Solutions (SNIC) and will install the RoxioNow™ platform on many electronic devices sold through Sears and Kmart stores.
“Teaming up with Sonic is a great opportunity for Sears and Kmart to quickly establish a position in digital video entertainment, and offer another great service to our customers,” said Karen Austin, President of Home Electronics for Sears Holdings. “With direct access to so many movies and TV shows from a broad range of devices, our customers will have the ability to obtain the latest high-quality entertainment virtually anywhere, anytime.”
That’s all well and good, but the only real issue here is whether or not there’s growth for either of these two companies.
Sonic Solutions is a smaller company ($251M market cap) trading at $8.20, off it’s high of $14.02 back in April—double top in April/May before SNIC dropped. According to FinViz.com, this stock has 95% institutional ownership. The 52-week low is $2.46.
A quick look at revenue and earnings (Reuters data) show the company has been declining since 2008 (-15.22%) while earnings per share have changed from -0.0747 to -0.0688 (7.89%).
Meanwhile Sears has plummeted from its higher of $125.42 in April to $73.61 today. A further decline under $70 per share is likely.
My name is Jason A. Martin. I'm an investor/trader, financial writer and entrepreneur. This is my blog. I also run a social media integration & cross-media design company. If you'd like to follow me on twitter, here's the link: Jason A. Martin
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My name is Jason A. Martin and this is my investment blog. Back in Jr. High School I fell in love with an electrical wiring company's stock on Wall Street. After following the stock daily in the papers—the Internet wasn't around back then—I sent them a letter and they sent me back all sorts of wonderful information about their company.
In High School, we had a stock market contest. All the kids were picking companies that made stuff they consumed. When I announced my beloved company, I was laughed at. Little did they know that my company was going to be the subject of a takeover soon.
Long story short, I won the contest and have made money in the stock market, through real estate investing, currency trading and so forth.
I hope you enjoy Financial Rebel. If you do, please leave your comments and share this site with those you know.
Jason
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