4 Stocks: 1 Hot, 3 Not

Hot Sock: Sears Holdings Corp. (SHLD)

Talk about a stock flying under the radar. Sears Holdings Corp. (SHLD) is covered by just
five analysts, and all of them consider the stock a “sell.” In fact, four of the five rate the shares a “strong sell.” But that means the stock is
ripe for upgrades.

Short interest on the stock is very high, raising the possibility of a short squeeze that
could boost the share price. Given how the stock has done following the past three earnings reports (up an average of 16% in two weeks), this extreme
pessimism could unwind into some serious buying pressure — and some serious profits for traders who purchase SHLD call options ahead of earnings.
The company reports on Aug. 20.