Sears Holdings Corporation (NASDAQ: SHLD) is running higher this Tuesday after additional rumors that the floundering retailer is a going-private candidate. Shareholders of Sears have almost no real power in the company, so anything is possible in the end outside of logic. The rumor mill has always had Sears as a buyout candidate, but this has the short sellers running for cover.
The rumor and chatter is that Eddie Lampert is considering a way to take the company private. The current market value is $4 billion at $37.60 or so, and there are so many investors who would sue management for forcing losses upon the shareholders. They would actually have a good legal case and it would not be too large of a stretch for any attorney worth his (or weight) in blue light specials to argue that Lampert and friends intentionally allowed (if not encouraged) a state of perpetual decline just in order to facilitate an environment where management could take the company private.
Lampert originally took control of Sears as a ‘sum of the parts’ strategy rather than trying to be a hedge fund manager turned retail mogul. Two recessions got in his way of unlocking all that value and now the public has very little interest in going to Kmart and Sears.
Shares of Sears are up more than 11% at $37.30. The rumor mill is alive and well.
JON C. OGG
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