Sears Holdings Corp (NASDAQ:SHLD)
Sears Holdings Corp (NASDAQ:SHLD) closed almost 12% lower after the company’s CFO Jason Hollar attempted to alleviate investor concerns by soft-pedaling the language in its 10-K filing on substantial “going-concern” doubt. Hollar stated that the use of the new language was intended to follow regulatory standards.
Deloitte made no note of the going concern matter in its yearly report audit opinion, but the CFO provided the somewhat circular statement that its independent auditors offered the firm with an unqualified audit opinion, which the CFO then stated indicates the company remains a going concern.
Debtwire legal expert Joshua Friedman postulates that the new language could be an indication that CEO Eddie Lampert, who has put cash into Sears Holdings from his ESL Investments hedge fund and has some of the firm’s unsecured debt, could be prepared to turn off the monetary spigot.
Another year has passed by and Sears Holdings Corp (NASDAQ:SHLD) tries to captivate investors.
The company obtained proceeds of $105 million from the asset sale of three properties this month. The company obtained gross proceeds of $72.5 million earlier in January from a sale-leaseback deal for 5 Sears Full-line stores and 2 Sears Auto Centers and they obtained additional gross proceeds of $105 million in February from the sale of 3 Sears full-line stores, two leased and one owned, which they will continue to manage as Sears sites for a period of up to 1 year.
In the press release it was noted that Sears Holdings Corp (NASDAQ:SHLD) recorded $105 million of proceeds in February 2017 by selling 3 assets. The question arises, are these two transactions the same? If yes, then one of the months is wrong? It could be that there are two different transactions, the terms coincidentally happen to be the same. There remains some confusion which as of now needs to be sorted out before taking out any call on Sears.
In the last trading session, the stock price of Sears Holdings Corp (NASDAQ:SHLD) declined more than 12% to close the session at $7.98. The decline came at a share volume 4.14 million compared to average share volume of 1.98 million.
|Last Price a/o 3:21 PM EST||$7.98|
|Market Cap (mlns)||$854.18M|
|Shares Outstanding (mlns)||107.04M|
|Share Float (mlns)||70.84M|
|Short Interest Ratio||9.33|
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.