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Sears Holdings Corp. (SHLD) Message Board

  • willfordhersusch willfordhersusch Sep 19, 2012 10:11 AM Flag

    Somebody Please Explain SHOSR

    I just noticed that on my Scotrade account is SHOSR listed right below SHLD. It is trading at $2.43. It says I have shares, but those shares don't actually seem to have a dollar amount associated with it yet. What is this? I see it is Sears Home, but I have to admit, I haven't recently been paying close attention lately, so I may have missed something.

    Any help or explanations I would appreciate, thank you

    Sentiment: Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • SHOSR is akin to a ball-gag in the mouth of shorts so that no one can hear them squeal. Eddie has gone medeival in torturing shorts to the point where they're not even sure the manner in which they will be crushed next. All they know is that pain is on the way in some sick form which is why 7 million shares have been covered in the past 6 months, with another 8 million to be be covered in next 6 months. Each time Eddie spins off a business, a short gets crushed

    • October 8 is the deadline to exercise your rights. either sell them or exercise them by this date. people are paying (cost basis) about $25 per share of SHOS when you account for the cost they're paying for the rights on the open market plus the $15 / share price of SHOS they'll have to pay to exercise those rights. since your rights were "free" you'll be paying $15/share of SHOS if you exercise them.

      • 2 Replies to A Yahoo! User
      • Yahoo! User - Your post is very confusing or at least not clear as to various options as to what to do with the rights. For example, suppose you were holding 1000 shares of SHLD on the record date of the distribution of the rights, you then received 1000 rights. Each right gives you the right to purchase 0.208091 share of SHOS at $15 per share of SHOS. Said another way it takes 1/0.208091 = 4.81 rights (trading under the symbol SHOSR) plus $15 to buy one share of SHOS. Today you could sell the 1000 rights at about $2.42 per right and pocket $2420. Or you could exercise your right and purchase 208 shares of SHOS at $15 = cost of $3120 plus the rights. This is why when people buy rights and then exercise the rights they are in effect paying $26.63 for each share of SHOS. Your other option is to let the rights expire worthless (you don't lose any money as they were given to you from SHLD). I chose to sell my rights (they trade like any other stock, but they are short lived). If you want to exercise your rights you need to coordinate with your broker and find out the latest dates to actually instruct your broker as to what to do. Since the rights showed up in my account, I sold them as I would any other stock. Incidentally, I only had 200 rights - see my earlier post on this subject.

      • How did you come up with the '$25 per share of SHOS' on the open market?
        SHOSR price this morning is hovering around $2.40 so if someone to purchase that 'right', their cost basis for SHOS would be $2.40 + $15 = $17.40
        Did I miss something here?

    • October 8 is the deadline to exercise your rights. either sell them or exercise them by this date. people are paying (cost basis) about $25 per share of SHOS when you account for the cost they're paying for the rights on the open market plus the $15 / share price of SHOS they'll have to pay to exercise those rights. since your rights were "free" you'll be paying $15/share of SHOS if you exercise them.

    • It's a spinoff of rights to buy Sears Hometown shares. You need approximately 4.6 rights and $15 dollars for every new Sears Hometown share you want to buy (through a corporate action form).

      • 1 Reply to debaser8
      • I sold my measly 200 shares today at $2.43/share. The 200 SHOSR would have only given me the right to buy about 43 shares of the new spinoff which will trade under the symbol SHOS at $15/share. I wasn't too keen on paying $15 for a stock that currently isn't being publically traded and I have very little knowledge about so I preferred to sell the rights and at least have cash to show for it. If you don't exercise the rights by purchasing SHOS, they expire worthless. You need to check the dates that you must either exercise the rights or sell them as the time frame is very short.

 
SHLD
38.97+3.02(+8.40%)Oct 24 4:00 PMEDT

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