Sears raises $100 mln in new funding, sees holiday sales drop

Sears raises $100 mln in new funding, sees holiday sales drop

Sears Holdings Corporation (NASDAQ:SHLD) shares have experienced a recent steady downtrend, causing some concern for shareholders.

In a blog post published Wednesday, Chairman and CEO Edward Lampert says that while spats between itself and vendors have been "exaggerated by some in the media, various vendors and other providers to the company have taken or threatened actions that have had a major impact on our operations and liquidity". The stock witnessed -29.19% declines, -55.79% declines and -58.82% declines for the 1-month, 3-month and 6-month period, respectively.

How has the stock performed recently?

Currently, 0.10% of Equity Residential (NYSE:EQR) are owned by insiders with 94.36% six-month change in the insider ownership.

What do the trading volumes reveal? It has ditched 1.49 million shares. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down. The current price is seen ranging between $2.85 and $3.05. More volatility means greater profit or loss.

Sears Holdings Corporation (NASDAQ:SHLD) has a beta of 1.24, compared to a beta of 1 for the market, which implies that the stock's price movements are more extreme than the market as a whole.

Sears said its same-store sales dropped between 16 and 17 percent for the first two months of the fourth quarter, or what represents the crucial holiday shopping season.

The company, which operates Sears and Kmart stores, said Wednesday that it secured $100 million in new financing, will seek twice that from other sources, and will attempt $200 million in additional cost cuts this year unrelated to store closings.

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The company, which at one time was the largest USA retailer, has been trying to boost liquidity and save costs after warning last March that it had doubts it could continue as a going concern.

SUSQUEHANNA INTERNATIONAL GROUP, LLP raised its stake in Sears Holdings Corporation (NASDAQ:SHLD) by 280.01% during the September 2017 quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. Ing Groep Nv invested 0% of its portfolio in Sears Holdings Corporation (NASDAQ:SHLD).

Previously Sears Hldgs Corp (NASDAQ:SHLD) reported $-2.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $-4.46 by $1.82.

The $100 million funding deal is backed by land leases and select intellectual property. Under certain circumstances and with the consent of the lender, the company will be entitled to raise an additional $200 million against the same collateral.

Further, the company is also continuing to pursue a secured credit facility, consisting of an approximately $407 million (net of associated costs) first lien tranche and a second lien tranche of up to $200 million, secured by the 138 properties now subject to a ring-fence arrangement with the Pension Benefit Guaranty Corporation.

Sears also said it won concessions from lenders that allow it to borrow more money based off of the value of its inventory. It has a market cap of $385.31 Million. The company's distance from 52-week high price is -77.58% and the current price is 3.88% away from 52-week low price. For the next 5 years, the company is expected to grow by -163.9 percent.

The early figures for Q4 show a slide in comparable sales mirroring its third quarter, when comps fell a precipitous 15%, contributing to a total sales fall-off of 26% to $3.7 billion. Its quick ratio for the most recent quarter is 0.20.

Taking a broader look at the analyst consensus, according to 1 analysts Sears Hldgs Corp (NASDAQ:SHLD)'s price will reach at $3 during 52 weeks. Information in this release is fact checked and produced by competent editors of Hot Stocks Point; however, human error can exist.