Energy Disruption: Why I Won’t Buy Oil Stocks Now

My prediction is that the energy industry is about to go through a process of disruption similar to what the computer industry went through in the 1980s. In 1980 the computer industry consisted of a few companies such as IBM that relied upon giant centralized systems. By 1990 the industry had become decentralized as new competitors like Apple sold smaller, cheaper machines that diffused computing power to everybody.

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Seritage Will Not Help Sears Avoid Death Spiral

One also has to wonder what Seritage investors are actually buying. Seritage purchased the properties from Sears for $2.72 billion, yet it only raised $1.6 billion through the IPO. It is unclear how it will generate revenue because all but 11 of the properties it owns are leased back to Sears, a company that’s losing $2 billion a quarter. There’s no guarantee that Sears will be able to cover those lease payments.

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