Sears Holdings Corp (NASDAQ: SHLD)
Sears Holdings looks like it's off to an overwhelmingly strong day in the market today. While we are minutes away from the opening bell at the moment, the stock is seeing some strong gains. Below, we'll talk about what we're seeing, why, and what we'll be watching for with regard to SHLD ahead.
What We're Seeing From SHLD
As mentioned above, the market hasn't quite opened yet, but we are already seeing pretty impressive gains on Sears Holdings. While after hours wasn't looking too good, the company released a business update this morning. As soon as the update was released, we started to see gains. At the moment (9:13), SHLD is trading at $11.00 per share after a gain of $0.64 per share (6.18%) thus far today.
Why The Stock Is Heading Up
As usual, our partners at Trade Ideas were the first to inform us of the run on SHLD. As soon as they did, the CNA Finance team started digging to see if we could uncover the reason for the gains. It didn't take long to find the story. It seems as though the gains are the result of a business update that the company provided early this morning.
In the update, Sears Holdings said that their goal is to increase financial flexibility. While this is something they had been working on in the past, today we learned about additional action. The action that will be taken to help achieve financial flexibility is the closure of around 150 additional stores. Ultimately, this will free up funds, hopefully helping SHLD to achieve its end goal here.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SHLD. In particular, we'll be watching the finances. Ultimately, the company is working to achieve financial flexibility. By shutting down less profitable stores, they should be able to do so. We'll keep an eye on the news and bring it to you as it breaks!
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