SHLD stock closed at 2.11 after falling as low as 2.09 during the trading day. Most stocks were down today, but SHLD lost more percentage than most of them. SHLD is very close to dollar stock territory and likely Chapter 11 -> Chapter 7. Remember that in the case of a Chapter 7, Eddie still makes off well as he is the primary lienholder.
19 replies (most recent on top)
@4bps - If Fitch, Moodys and S&P lower SHLD's credit rating to default, you better believe the vendors will be pulling out.
Stock does matter. Ask Hhgregg. When their stock fell below 2.00 they filed within a year. You have to have investors.
Keep saying stock prices do not matter.
You can’t continue short selling with the stock that low.
@4bps- the vendors dont look at stock price they look at account payable. They could care less if the company is worth 1B or 1M as long as they pay their bills.
@RDC1e7P-1dcd You are right since the majority stock owner is Eddie Lampert, but you have to also remember that the vendors would also start pulling away at the risk that the company is heading to bankruptcy. Its a risk for vendors to keep doing business which could mean they can start pulling out. So the stock does indeed matter.
Well, if the stock falls below $1 beyond NASDAQ's time limit, which I'm sure it soon will, it'll get delisted and we won't need to be concerned with topics like this on this board again.
@2fpy- Well I'll answer your comment. It does not matter if I am the one you were replying to or not I was making a point. This is a board, you make and receive comments from many people.
And if you read the comment then you would see that what I am speaking of it this company, not every company
In the case of SHC we don't know if the company has billions of dollars worth or real estate or if the properties are junk. And when you have a company that is majority owned by a few people then it is difficult if not impossible to determine the value of that company. Also, SHC is hevily shorted.
So in short "stock price means nothing" for this stock, SHLD, not every stock. This is a Sears board so I would assume that we are talking about the company Sears or Kmart.
So in response to your reply. When I post I try to educate, but when someone asks a question it needs to be asked politely and with respect. If someone, I guess you, comes on and makes sarcastic, ignorant, or just plan trolling questions, then I will try to educate but also inform them that the way they asked was not appropriate. So it was not hubris, I, as well as many of us have a lot to learn about investing. And I don't claim to know everything about investing, SHLD or anything else. But what I do know is that it does not matter how long you have been at something, you can learn more.
As for how long I have been doing this: Well over 30 years in the financial, banking and investment industries. Mostly corporate debt restructuring and tax planning. So no offense just trying to educate and keep some sort of civility on this board.
Yep. Money to be made. Stock reached another 52 week low today.
Jim Cramer eddies buddies would say buy buy buy. Huge money to be made.
@1uqz - "So please dont come on here and show your ignorance by trying to prove a point about something you dont know anything about."
Well, well, you sure showed your ignorance. Apparently, you have a comprehension problem! My sarcastic comments were directed @1dcd, who seems to believe that, "Stock price means nothing."
"IF you want to know how the stock market works and how to invest I would take course or ask a financial advisor. So please dont come on here and show your ignorance by trying to prove a point about something you dont know anything about. And if you do know and you ask a question like that then you need to go back to school."
FYI, I've been successfully investing in stocks for 58 years! How about you? How many years have you been at it?
Rather than indulging your hubris by attacking a comment that you don't comprehend, you should be brushing up on your humility!
Stocks mean a lot. The long term price changes of stock can tell you a lot about a company. The overall cost per stock also tells you a lot. HOWEVER the micro changes to stock prices don’t really mean anything in this situation. Getting excited about a $2 stock’s decrease by a couple cents is a complete waste of time and energy.
@1xso- Doesn't work like that. If you have loses then institutions that own your stock (retirment funds, banks etc.) will sell or hold. Others will try to short the stock (hope that it goes down). Now for those who short (there is plenty), since there are no shares to buy (Eddie, Bruce, institutions own the majority) the people who want to short must borrow the stock with a fee. Now they must borrow the stocks from someone like Eddie, Bruce other others with a time limit or until the owner of the stock wants it back. When this happens it is called a short squeeze and the owners can get the price to rise because now the shorts have to pay money to buy other stock to cover their short. So the price can rise and the loses for the borrower can be unlimited. there are also "puts" that can be bought and other ways to make the stock price rise or lower. There are also bonds to take into account.
So yes, if you have a majority stake you can keep the stock at a reasonalble price but the price is not unlimited to rise or to fall. Unless, the credit rating tanks or the vendors pull the plug then most stockholder (eddie and others) can keep the stock price high just by buying and selling stock to themselves or to their hedge funds.
Much more complicated and with other factors involved but that is enough information for you to hopefully understand a little finance. IF you want to know how the stock market works and how to invest I would take course or ask a financial advisor. So please dont come on here and show your ignorance by trying to prove a point about something you dont know anything about. And if you do know and you ask a question like that then you need to go back to school.
SHLD (2.14 a share)'s market cap is 227 million, while JCP (3.36 a share)'s market cap is 1.12 billion (also, JCP is investing in its stores and is sizably above its 52 week low). This shows that Eddie is still overvaluing SHLD stock (it should really be trading around $1 or below)
@1dcd - "Eddie owns the majority of the stock" and "It can be easily manipulated up or down because one person controls most of the stock." Okay, then why doesn't Eddie manipulate the stock to say, $200 per share? Like you stated, "Stock price means nothing." Heck, why not manipulate it to $1,290 per share, the same as Amazon?
@1dcd - "Stock price means nothing." You are correct, when the stock price hits zero, that means nothing remains!
Stock price means nothing. Think about it--Eddie owns the majority of the stock and yet he still keeps the company going. Why? Because for this company, stock price means nothing. It can be easily manipulated up or down because one person controls most of the stock. This company will end when Eddie decides it will end, unless vendors beat him to it.
Eddie is positioning himself to be in a superior position vs the general creditors when the upcoming BK occurs. And it absolutely will happen. There will be no stockholder equity left for which Eddie will lose lots of money. However, his hedge is the real estate.
It's gotten depressing. I check the stock every night and now almost every day the ticker says "new 52 week low." Previously even when we were doing bad, we were above JC Penney.
@yit Enough to put Eddie in prison?
to be honestly Eddie is probably just trying to save himself from complete ruin. There’s no way there’s enough value in sears to make up for the decade lost and all the potential profits from something else during that time.
Still he’s up to some sketchy stuff.