Sears Holdings Stock Plunges to New Low on Bankrutpcy Buzz

Short sellers have been in the driver's seat on SHLD stock

by Karee Venema

Published on Oct 10, 2018 at 10:27 AM
Updated on Oct 11, 2018 at 12:19 PM

Sears Holdings Corp (NASDAQ:SHLD) could follow Toys 'R Us and Mattress Firm as the next retailer to fold. According to the Wall Street Journal, the Kenmore parent is preparing to file for bankruptcy (subscription required) with a $134 million debt payment due on Monday, Oct. 15. The Journal also reported Sears appointed restructuring specialist Alan Carr to its board yesterday.

In reaction, SHLD has plunged 33.1% to trade at $0.39 -- slicing through yesterday's then-record low of $0.56. The shares hit a fresh bottom at $0.35 earlier, and could be headed toward their worst daily loss ever. On Dec. 27, 2011, SHLD shed 27.2%, its biggest one-day drop to date.

Today's negative price action is just more of the same for a stock that was trading near $120 back in 2007. Sears stock has plunged nearly 89%, and is on track for its 13th loss in 14 sessions.

Short sellers have profited handsomely from Sears Holdings' fundamental and technical troubles. The 20.3 million SHLD shares currently sold short is the most since April 2014, representing 29% of the stock's available float, or seven times the average daily pace of trading.

Stocks to Buy Before a Fed Rate Hike
The central bank is widely expected to hike interest rates on Wednesday
Breaking Down the Quick & Dirty S&P Drop
The SPX fell more than 10% in 50 sessions
Bet on This Medical Device Stock to Break Out
The shares could be poised to break out of recent congestion below $245
From Schaeffer's Pro Traders
Weekly Options Secrets Revealed

Direct from our Schaeffer's traders, your FREE guide to winning with weekly options!


Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Former Hedge-Fund Manager Reveals Stunning Research
This stunning research revealed by the former hedge-fund who predicted the last NASDAQ crash could have some Americans thinking twice before hoarding cash.
Inside the Big Moves from Navistar and Rent-A-Center Stocks
Two of today's biggest stock moves are coming from NAV and RCII
Take-Two Levels Up On Analyst Coverage
Shares of TTWO are up after Buckingham Research weighed in
Former Hedge-Fund Manager Reveals Stunning Research
This stunning research revealed by the former hedge-fund who predicted the last NASDAQ crash could have some Americans thinking twice before hoarding cash.