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3 Stocks Even Wall Street Fat Cats Expect to Crash

When you see all-too-rare sell calls, you better duck and cover

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I know, this isn’t even fair. Anyone who has stepped into a Sears (NASDAQ:SHLD) store in the last few years knows the score on this one. Crumbling brick-and-mortar operations, the tarnish on once-proud store brands like Craftsman and Kenmore, and recent news that over 100 underperforming Sears and K-mart stores will be shut down.

But sometimes restructuring can work, right? After all, that sly hedgie Eddie Lampert knows a thing or two about squeezing value out of companies. . .right?

Not so much. The Sears chairman may have a name on Wall Street, but his buddies don’t seem to be cutting him any slack. To the point: 60% of analysts — more than half, and how rare is that? — rate the stock a sell. Zero rate it a buy, according to Factset.

According to Thomson/First call, the high price target for SHLD is $27. That’s a best-case scenario and below current pricing. The low is $19. That puts the median at $20 and the mean at $22.

I won’t belabor the reasons why. Sears Holdings has lost money in five of the past six quarters. Even worse: November marked a stunning 19 straight quarters of sales declines. The writing is on the wall.

So don’t be silly and bargain-hunt in Sears right now. Even the yes men on Wall Street are saying no to this dog with fleas.

Jeff Reeves is the editor of Write him at editor@investorplace??.com, follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook. Jeff Reeves holds a position in Alcoa, but no other publicly traded stocks.

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