Sears Holdings (SHLD) is undoubtedly one of the most hated stocks on Wall Street. A major reason for the animosity is Wall Street’s focus on the primacy of the income statement and Sears is not a profitable retail operation. Analysts’ that also cover profitable retailers such as Wal-Mart (WMT) or Target (TGT) are befuddled by the matrix that is Sears, with a variety of different assets and brands, led by Hedge Fund manager Edward Lampert. At T&T Capital Management (TTCM), we utilize a fundamental finance approach to investment where resource conversions such as Sears are fertile ground. Where others see garbage and impending bankruptcy, I see wonderful real estate assets and brands that can be monetized. Similar to Berkshire Hathaway (Brk.A) when it was controlled by Warren Buffett, Sears has likely been kept around in too great of size for too long, because it is a messy business cutting jobs and selling stores. Sears is a huge employer and turning around a retailer in the age of Amazon (AMZN) is no easy task. Over the last few years, we have profited on Sears using bonds, the stock and selling put options. Currently we have bullish positions on Sears, as do other deep value investors such as Lampert obviously, and Bruce Berkowitz of Fairholme Funds. This will be a battleground stock and I believe will be an interesting case study for future business classes, for better or worse.