(MONEY Magazine) – When we called Sears (S) a turnaround story in June 2002, we made much of the company's credit cards, which produced 69% of operating profit. So far the turnaround hasn't panned out: Shares are down 22% since our story ran. But on July 15, Sears announced the sale of its card division to Citigroup. Will this turn Sears around?

Jay Sherwood, co-manager of the RS Value Plus Growth Investments fund, believes that investors should hold on to their shares. Sears, he says, will save $200 million a year in costs, will receive $200 million annually from Citigroup for new accounts generated and, most important, will net $4 billion in cash from the sale, much of which, he expects, could go to shareholders. In fact, a one-time dividend payment could be worth as much as $13 a share. --AMY WILSON