ISI Maintains Sell on Sears Holdings

ISI is out with its report today on Sears Holdings SHLD, maintaining Sell. In its report, ISI writes, "SHLD seems to be at a more critical spot than in 2009. Working capital management will be the key thing to watch in 2H; SHLD needs to reduce inventory and extend payables or sell assets. We currently assume SHLD burns $500-750mn in FCF in 2011 meaning that SHLD may need to rely on the revolver for the duration of 2012 rather than just intra quarter. We continue to believe that underinvestment will not support the asset base and find much better opportunities in retail." At the time of posting, shares of SHLD were trading pre-market at $57.67, down 4.11% from Wednesday's close.