Does anyone know the next support level for the stock? It seemed to have had resistance at 11.00 for a while then weeks later it bounced off 10.00. Now it has fallen well past the 1 bil cap mark at 9.34, down to 8.40. It amazes me that 80% owned by insiders. How are they monetizing this? I am missing a piece of this puzzle.
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I think you hit the nail on the head with monetizing seritage at the expense of sears. Eddie will sell off all assets of sears, leaving only debt, then fold the company in bankruptcy. Those left holding the bag will fight over cents on the dollar to settle what they are owed. It's business (mafia style business).
how are the monetizing it? because they buy just enough stock at sears to keep it afloat long enough to guarantee then the Seritage properties. If you lose out on your Sears stock but keep your sertiage at 50-60 bucks per share and get to keep the top 250 properties worth billions then the sears stock is collateral damage
But wouldn't the stock price have to fall below $1 for SHLD stock to be delisted from NASDAQ?
Below $5 a share, it becomes what is considered a penny stock. That's important because most public pensions and mutual funds won't own penny stocks, and most exchanges won't list them. There are some exceptions, such as NASDAQ (which SHLD lists on). But in most cases, the exchanges give them a time limit to return their stock above the penny level (30 days or so).
SHLD can return the price above that level by performing a reverse split (1 share for 2, or 1 share for 3), but that is expensive since it requires re-underwriting. I doubt that SHLD is concerned about lasting past the 2nd quarter, so they may not even entertain that option. But the market capitalization is key to the PBGC springing lien trigger, so short of someone coming along and investing hundreds of millions, with no added liability to the company, then they are out of options to avoid that scenario. And once the lien is in place, then those assets are essentially off the books for the company, so the price should crash even further. Granted, they will decrease the pension liability at liquidation, but that will cause even greater loss of confidence in the investors who aren't Eddie and Bruce.
8.29 now.
Well, it ain't 8.30.
Yeah, definitely won't go below 0.
Next support level is zero.