The SHLD Stock Price has gone up over $2 overnight and has opened @ $7.70! How is this even possible? Did word get out they were selling more stuff because this does not make sense for a failing company like SHLD to suddenly go up two dollars overnight!
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With a stock as heavily short sold as SHC, weird things are going to happen. The news of the "restructuring" is obviously just more of the SOS. It's just another statement by SHC of the commitment to corporate suicide by cost cutting. But short sellers might have decided to cash in some gains, which drives the price of the stock up in the short term. It's pretty much meaningless to the long term future of this zombie company. The stock will bounce around day to day, but the coming failure of SHC retail is inevitable.
The stock opened $7.70 and closed at $6.69. From open to close it lost $1.01, but if one compares it yesterday it rose by $1.42. The index shows a 25.63 % increase from yesterday. This spike wi) help postpone the stock dropping to the point it is delisted but this mornings spike did not start a climb or even a steady rise, it contained to fall throughout the day. If it fell at the same rate if fell today without the spike stocks would be the $4 range. Some make look at the end of day today and end of day yesterday and say things are up but it is clear that they are only going to keep falling.
If you mean that email, I read cutting costs as cutting jobs. Either in stores or closing stores altogether.
I think Eddie is buying time to sell off as many pieces of Sears and Kmart that he can before it all goes to the bankruptcy courts.
https://www.sec.gov/Archives/edgar/data/1310067/000119312517037205/0001193125-17-037205-index.htm
Read for yourselves. Nothing has changed.
there was nothing new in the announcement this am- everyone knew that the proceeds from craftsmen was going to the pension fund, the $140 million of extr debt will be gone in 2 weeks. Apparently a same store sale decline of 10.2% is a good thing.... ha ha it did make me laugh how eddie said that despite analyst expectations of a 12-13% same store sales decline... thats the number that eddie gave them in january!! of and btw eddie there is only 1 analyst who covers this stock left...
Eddie had to say something anything as the stock was close to being delisted - note how to opened at $8 and promptly sank. Aa they are in the lockdown period prior to earning he cannot step in and buy stock so he came up with a load of bs.
Cutting $1 billion of cost will change nothing - the cost base is not the problem its the sales and all the rest. Nothing changes with todays announcement.
I expect the 4th quarter loss will be $1 billion.
There was an announcement that Sears is cutting costs by one billion dollars as well as working with debtors to reduce dept and pension costs.