Thread regarding Sears layoffs

To piggy back on the previous answer. If you own the stock, which Eddie and Bruce own at least 80% between personal and their funds, then if people short Eddie and Bruce are the most likely people to be lending the shares. Thus, they would like the business to continue because they can cause a short squeeze at any time and make money. Same with institutions and other funds that own the stock.

On the other hand if the company goes bankrupt then all of the assets that back the loans Eddie has made will become his. So Eddie makes out either way.

That is why it is so hard to play this stock. Just a few people own a huge majority of the stock which makes it easy to manipulate (in a legal manner). And whatever the outcome of the company, continuing in business or going bankrupt, it is a plus to the majority stock holders and debt holders.

This is business and finance at its finest.

1nh1- To try to answer your questions

1. Many institutions and people can afford this. Your retirement fund, mutual fund, local governement and others are all in the stock market. All those bonds people buy to support building schools, building stadiums, funding roads, parks etc. All are in the stock market.

It really is up to the fund managers to determine how much risk they are willing to take. It is up to the people who are invested in these funds to to their homework to see how much risk is involved. As an example look at all the municipalities that went bankrupt in the late 90's and early 2000's. The funds they were investing in were very risky and they did not give the returns they wanted.

1. Yes and No. For every fund, individual, government that is invested on the side of SHC or other businesses failing, there are another group of people who are invested hoping it will survive. So there is really no need to manipulate the media or anything else. Once again, do your homework. There is a reason companies put out financials.

2. Sure/maybe. If I think that a company will go bankrupt within a certain amount of time then I would be hesitant to buy a big ticket item with PA's or warrenties because I would be afraid of what would happen if I need to have service. On the other hand many people can look at many of the stores and see that something is not right. But that does not prevent people from buying lots of stuff when a store is closing. So I would say that it is the shopping experience that keeps most people from shopping at Sears/Kmart. Dirty, old, slow, rusted stores with little to no service and too much focus on things that have nothing to do with customer service (SYW, credit cards, PA) tend to turn people off from shopping with SHC.

3. Yes and no. If you are a profitable store you are probably supporting the other stores around you in staying open. If you are unprofitable then it is only a matter of time, that's business. But if too many of the stores around you are closing then profitable or not your store will have to close. Not because you are doing a bad job, but it makes no sense and is expensive to make deliveries to a lone store far from a DC or other stores. Also, if you are a leased store it is only a matter of time. Todays retail is about smaller stores, less square footage. If your store can sublet to another business then maybe you stay open, but if your rent is expensive and you are too big then once again it makes no sense to stay open. If you are a SHC owed store it is 50/50. Can SHC get more money renting to someone else? Can they put three businesses in the space as opposed to just a Sears/Kmart? Can they sell the building and make cash flow? All the answers to these questions you cannot know because they are on a case by case basis. Hope this helps.

@1ikq I agree with you. It is disgusting that anyone could ever celebrate the despair of others. Hang in there. I know it's hard day to day, but there are those of us at HE who worry too. It is above almost everyone at HE to keep a store open. I wish it was our choice, but it isn't. We just keep working away and doing the best we can to try to keep things going as I know you do too.

14 million shares of Sears Holdings are currently sold short, costing about $112 million as of today.

Four simple questions:

1) What kind of people or institutions can afford this?

2) Do these entities have the ability to shape how media covers our company?

3) Does news coverage influence whether people choose to turn to us for their shopping needs?

4) Does the number of people who shop with us factor into what stores stay open, and how many of our colleagues stay employed?

I'm a short seller, through puts, of SHLD, & yes I read this board but don't post anything, until now.

Short sellers don't have any influence on the media, they are not organized, plus there is no need. Sears actions and results are what prompts the media to pay attention, nothing more. Once in a while you'll see a hedge fund guy like Ackman try to organize a short, but in reality is all that shorts do is shine a light on whatever issues there are. The market decides if its real or not.

Shorts are not hurting you in any way, & speaking for me, I have nothing but sympathy & concern for Sears employees. I am shorting Sears since I have never seen the incompetence on the level of what Eddie is delivering, & the future is so easy to predict.

Best of luck to all the Sears associates as they move on to greener pastures.

This board is a goldmine for shots. Some of the nonsense they post is a "source" for fake media.

I doubt any short sellers would waste their time on an employee board.

I wonder how many of these "short sellers" are the ones posting on this chatboard.

Billion dollar hedge funds are among those who have borrowed and short sold stock, and stand to make massive profits from a SHC bankruptcy. It is undeniable that these entities have the literal Capital to shape and influence ongoing media coverage of our company, which in turn influences consumer spending habits. With Sears being the 4th largest appliance retailer at present, success or failure in this area saves or disposes of our jobs. The persistent news stories of an inevitable bankruptcy certainly influence whether the public avoids buying a new washer and dryer from SHC for fear that their warranty may soon be invalid for instance. Google 'Sears news The Street' or 'Sears news Business Insider' and see for yourself if the news is balanced, then ask yourself who stands to benefit from ongoing coverage of this type. The American retail labor market is in crisis, and people should lose their jobs unnecessarily, period...

what should worry you is not investors but lack of sales for good reason

People shorting the stock have little to no effect on operations. The executives who run the day to day operations are the ones who determine whether the company succeeds or fails. The only case in which the stock buying or selling public has any impact is if enough shares are sold to cause the price per share to drop below $1, in which case the shares might be delisted, and borrowing from the markets becomes more difficult. But sears already can't borrow from the market, and relies on loans from ESL to continue operating.

The short interests are nothing compared to the destruction wrought by management. The shorts are taking risks, but they are not to blame for any of Sears woes.