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Why Amazon Buying Sears Would Be Stupid

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NEW YORK ( TheStreet) -- Like fellow foot-traffic rival Radio Shack after its Super Bowl commercial, Sears Holdings Corporation has soared in recent market action. And like the Shack after the glow of its Super Bowl commercial dimmed, the stock price of Sears Holdings should be falling soon on unrealistic expectations.

Sears' stock price is up primarily due to an insider buy and an article in Forbes touting that should buy the struggling retailer. Here are just some of the many, many reasons why Amazon should not purchase a single share of Sears Holdings.

Forbes argued that Amazon should buy Sears Holdings to convert its stores into distribution centers that create a physical presence for the Internet retailer.

Common sense generally works best in economics so how about the obvious? If the Sears stores have such great potential as distribution centers, how come neither Federal Express   nor United Parcel Service has pounced already?

After all, it was not long ago that Sears management was pitching its real estate as ideal locations for data centers. That didn't work .

I think there is little value to any of the real estate that Sears owns. There is one billion square feet of vacant real estate in the United States with tons and tons of retail stores being emptied by the collapse of Dots LLC, Coldwater Creek, RadioShack and JCPenney , among others.

In a November 2012 interview with Fortune, Bruce Berkowitiz, the second largest shareholder of Sears, stated that, just based on its real estate, Sears was a  $160 stock, which is now off by an epochal margin.

The price of the stock is another reason that Amazon or any other entity should not buy Sears.

Sears is around $43 a share, up nearly 30% for the last week of market action. Why pay a premium in a takeover when there is a good chance that Sears will be selling for pennies on a dollar in the not too distant future? The company is losing money with negative returns on equity, investment and assets. On a quarterly basis, sales growth is down by 13.60%.

(A short float of 5% is considered to be troubling for a company; Sears has one at 20.32%.)

Those are the numbers for a company to be bought at a premium rather than to wait for it's likely implosion?

The market says I am a lot closer to the actual value than Berkowitz or anyone advocating a takeover. In addition, the value falls more and more each day for a retailer that already has 119 closed stores available. In January, I reported that the real estate of Sears had little value; back then that there were 119 closed Sears stores available.