With A $20 Price Target For Sears, Just Short Covering Right Now (SHLD)

Sears Holdings Corporation (NASDAQ: SHLD) has been a disaster of a stock over the long-term, but it is off to one incredibly strong recovery in share prices in 2012.  The trough to peak after a 6.5% gain so far on Monday from the $29.20 low close on January 6, 2012 has been by well over seventy-five percent to $52.25 today. It is possible to some extent that the strength of some retailers may actual;ly be because no one wants to shop at Sears or at K-Mart stores.  Those shoppers have gone to Wal-Mart Stores Inc. (NYSE: WMT), Target Corporation (NYSE: TGT), or other large and box-format retailers.

Credit Suisse says that the move is mostly due to short covering. The opinion puts that well above the real hopes of a possible buyout. Credit Suisse even noted that with only about one-quarter of the stock being in the free float that the short squeeze could go on for quite a while.  Credit Suisse ends with a sobering note of scenario that investors do not want to be on the wrong side of.  On its own valuation, Credit Suisse has a $20.00 price target for Sears equity.