Sears Holdings Corp (NASDAQ: SHLD) is having an overwhelmingly rough start to the trading session this morning, and for good reason. As the company’s financial struggles continue to ramp up, bankruptcy is nearing and the company has hired an advisor to help with the process. Of course, the news upset investors, sending the stock tumbling for the bottom. Today, we’ll talk about:
- The bankruptcy;
- what we’re seeing from SHLD as a result; and
- what we’ll be watching for with regard to the stock ahead.
SHLD Tumbles On Bankruptcy News
As mentioned above, Sears Holdings is having an incredibly rough start to the trading session this morning as news surrounding a coming bankruptcy hits the tape. According to various reports, SHLD has hired Alan J. Carr, CEO at the restructuring specialty firm, Drivetrain Advisors. Carr has been hired to help the company prepare for the bankruptcy process.
The news comes as SHLD has taken a slow and steady run toward bankruptcy. Now, debt payment due dates are just around the corner and many are questioning whether or not the company will default on the next round of required payments. Nonetheless, it looks like bankruptcy is on the horizon.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Sears Holdings, the news proved to be overwhelmingly negative. After all, bankruptcy equates to loss in the eyes of investors. So, it comes as no surprise that the stock is tumbling down in the market this morning. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (8:33), SHLD is trading at $0.43 per share after a loss of $0.16 per share or 26.51% 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 Sears Holdings. In particular, we’re interested in following the story surrounding the coming bankruptcy. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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