Many, on this board, believe that rumors are driving the price; but I don't think so. I think it is the other way around. The stock is up 6%, on no news. If there is no real news, why not make some up?
So, what is driving the price? I believe it is options expiration is driving the price. If the price crosses $50, all of a sudden, calls (that expire in 9 days) on 600,000 shares are in the money. That used to be a whole day's volume, last summer.
Given that all available shares are sold short, every share that is purchased to cover a call, is a share that a short has to cover. And if they don't do it, their broker does it for them. (ouch)
Did anyone else notice how that last run up was around options expiration?
Just my opinion; worth at least what you paid for it.
Bernanke said this week he'll be raising rates soon. All the consumers with maxed out credit cards paying Prime + x%, will see higher minimum payments, leaving them less money to spend. If Sears can't make money with high prices, they can't compete with JCP that just lowered all prices 40%.
Hard to say if this will kill JCP or Sears first.
Gee, those people over at the Washington Post must have gotten it wrong.
They said: "Bernanke sticks with Fed plan to hold interest rates low until ‘14, despite strong jobs report"
Thanks for giving us the real info.
I don't belive the big volume is short covering. 200,000 shares came few minutes before 3 and make the stock goes up more than $2. That what is happening in last few days. I think, the trent is down for this stock.
just google IT:
>>>Sears Holding Co's. (NASDAQ:SHLD) share prices advanced 6.17% following speculation that the retailer was working along with banking giant Goldman Sachs (NYSE:GS) to identify a buyer<<<
That's not news; that's just what some random web site said.
Here's what another random web site (seekingalpha.com) says:
Tuesday 2:21 PM The "classic short squeeze" must not have run its course, as Sears (SHLD +7%) shares again spike higher on no real news. No stock is more subject to rumor mongering and takeover talk than Sears; today, speculation has the retailer working with Goldman Sachs (GS) to find a buyer.
I'd like to emphasize *no real news*.
Everybody tries to find a reason why a stock goes up, and if they can't find one, many web sites will make one up.
The price is driving the rumors. The rumors are not driving the price.
Short covering is driving the price. More specifically: short call covering.
I don't understand the options. There are Put and calls options. One will loss. I heared the people are long in stocks they buy put to save their money. Why they want to keep the stock price over $50? The report will come on 2/23. Don't you think people want to sell their stocks before the report come up?