sears stock

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How to Profit from the Five Scariest Stocks on Wall Street Right Now

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Most investors focus exclusively on buying stocks in an attempt to capture huge returns. That's too bad, because it means they restrict themselves to half the opportunities available to them.

I bring this up because markets move up AND down, which means there is plenty of profit potential to be had in both directions.

George Soros, for instance, is reported to have made $1 billion in a single trade that famously almost broke the Bank of England in 1992.

John Paulson made billions from the housing crisis when it hit by betting against the grain.

Doug Kass of Seabreeze Partners is famous for bucking conventional wisdom on seemingly mighty companies and laughing all the way to the bank.

That's why shorting is one of the first tactics I shared with you in my Total Wealth publication.

Obviously, shorting stocks isn't for everybody - it takes a lot of guts and more than a little conviction to do it profitably. Not to mention a whole lot of discipline. But done right, it can really boost your profits.

Here's how to profit from the scariest stocks on Wall Street - without owning them...

Fund Managers' "Sears Mania" Is a Dangerous Delusion

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Investors reacted with joy when Sears announced on November 6 that it would sell 200 to 300 of its stores

to a real estate investment trust (REIT) in 2015.

It was the "Big Bang" announcement investors had been waiting for since hedge fund billionaire Eddie Lampert combined Sears with the bankrupt retailer Kmart a decade ago.

But, after a quick share price pop, "be-careful-what-you-wish-for" investors have figured out that the REIT transaction will saddle the company with an additional $150 million in operating expenses and gut the company of its last remaining valuable assets.

And that makes the endgame for this iconic American retailer a foregone conclusion...

Avoid the Sears REIT (Nasdaq: SHLD) - But Buy This One

Sears REIT

The idea of a Sears REIT (Nasdaq: SHLD) certainly sounds attractive. And the market was intrigued, sending shares up 31% in one day last week. But as tempting as it might be to buy into a new REIT, Sears is doomed.

But what if there was a way to invest in the smartphone shoppers that are stealing Sears' business and make REIT cash at the same time?

Today we're going look at just such a play...

Sears Stock (Nasdaq: SHLD) Plunges 16% This Week as Death Spiral Continues

sears stock

A Credit Suisse analyst has called for Sears Holdings (Nasdaq: SHLD) to liquidate its assets, saying that recent events surrounding the struggling retailer have him singing "This is the end."

Sears stock fell 5.2 % Thursday, after falling 9.4% Tuesday and another 2.6% Wednesday on news that the company is borrowing $400 million from ESL Investments.

Despite CEO Edward Lampert's best efforts, Sears might not be salvageable…

Sears Stock (Nasdaq: SHLD) Remains on "Death Watch" After Today's Earnings

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Sears stock (Nasdaq: SHLD) slumped 4% in premarket trading this morning (Thursday) before announcing financial results for its first quarter, which ended May 3. Overall, Sears posted a loss of $2.24 per share, vastly widening from Q1 2013's loss of $1.29 per share. The numbers were way off from analysts' more optimistic expectations of a projected loss of $1.91 per share. Revenue fell 6.8% to $7.88 billion.

Not much has changed in recent years for the retailer, which merged with Kmart in 2005.

You see, today's earnings are just another "nail in the coffin" in a long line of hits to SHLD stock - in fact, they mark 28 straight quarters of revenue drops for the retailer.

Here’s why investors should continue to steer clear of this “death watch” stock…