Sears Holdings Corp (NASDAQ: SHLD) is having an incredibly strong day in the market thus far today, and for good reason. The company announced that it is exploring options with regard to the sale of assets. Of course, the news led to excitement among investors, sending the stock on a run for the top. Today, we’ll talk about:
- The potential sale of assets;
- what we’re seeing from SHLD as a result;
- and what we’ll be watching for ahead.
SHLD Heads For The Top On Asset Sale Exploration
As mentioned above, Sears Holdings is seeing strong gains in the market this morning after announcing that it intends on selling assets. In a press release issued early this morning, the company announced that it has formed a special committee of the board of directors of the company. The committee was formed to explore the sale of its Kenmore brand as well as related assets. The company is also going to explore the sale of the Sears Home Improvement Products business as well as the Parts Direct business.
According to the release, SHLD may already have a buyer. In fact, the company reminded investors that it previously announced the receipt of a letter from ESL Investments, Inc. In the letter, ESL expressed interested in the purchase of these assets. the company also announced that it has retained Centerview Partners LLC to serve as its investment banker and Weil, Gotshal & Manges LLP to serve as legal counsel.
Nonetheless, it’s important that while the company is considering the sale of assets, we remember that the sale has not taken place yet. Moving on news like this before something is set in stone can be risky. In fact, SHLD warned investors of this risk in the press release with the following quote:
No assurances can be given that any formal detailed proposal will be made by ESL or any third party purchaser, or, if made, as to the terms and conditions of such proposal and the Sale Assets to which it relates, that any proposal made by ESL or third party purchaser regarding a proposed transaction will be recommended to the Board by the Special Committee, that definitive documentation relating to any such transaction will be executed, or that a transaction will be consummated in accordance with that documentation, if at all.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In this particular case, the news proved to be overwhelmingly positive. Sears Holdings is considering selling assets. Of course, if the sale does take place, it would likely generate incredible value for shareholders. So, it only makes sense that we’re seeing gains in the value of the stock today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:30), SHLD is trading at $3.63 per share after a gain of $0.21 per share or 6.14% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SHLD. In particular, we’re interested in following the story surrounding the potential sale of assets. Nonetheless, we’ll continue to keep our eyes peeled and bring the news to you as it breaks!
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