"Disgruntled investors"??? They're selling from their yachts after earning 25% for 20years. This guy was working for rubin at 25 running goldman desk and has an IMPECCABLE track record. This time is no different and he won't stop buying because he's staring at free money. he's staring at a dollar trading for 25 cents. its a no brainer.
sounds like a short getting sizzled. This is your worst nightmare last time dow was at this level SHLD was $195 the trade is over
only bot 55MM? whats wrong with you. He's bought 350MM PERSONALLY in the past year. THATS $1.4MM every single day the market is open. Show me an insider with more conviction
Thats $350MM total out of his personal account in the past year buying shares that he basically can't sell now that he is CEO - the red tape is too onerous. Eddie's all in and you would have to be insane to take the other side of his trade in my opinion.
Sentiment: Strong Buy
I meant directional too. SHLD is most heavily shorted stock in nasdaq100. This past week they took SBAC's place as #1. SBAC is up 90% in the past 12 months and shorts have collectively lost $600MM (not taking into account the borrow) on the trade
Empirically however, they do not 'win'. In fact, if they were to short the general market for the past 100 years they would have lost 10%+borrow annually. Even worse, if they were to short lampert's companies for the past 25 years they would have lost 25% annually plus 15-20% borrow. Short selling is a very difficult art that very few have been successful at aside from chanos, and even he admits to being 50% net long. I have never met a successful group of short selling funds. Their success is dependent on long-shots or tail probabilities and more often than not, even if they are right, in the end they get blown out of the trade. Its a very difficult business with awful odds - ask any Netflix short who have collectively lost $2B in the past 4 months even though they're most likely correct to be shorting a company with 130PE. Even if SHLD shorts are right, which i don't think they are, Lampert will buy the whole company at 70+. The odds are entirely against them, as they will painfully discover in the coming months/years
No debt maturities for 5 years. How on earth do you figure they can go BK with $5B in net inventory, and no debt maturities until 2018??