Sears Holdings has been showing weakness for the last several years with continuous sales declines quarter over quarter and worsening earnings. This was occurring all while the broader markets and retail sector were performing well. The retail sector as a whole just had one of the worst earnings releases in the last decade including earnings misses by Nordstroms, Macys and Kohls. Additionally, these companies all stated a negative outlook for the remainder of 2016. If Sears is essentially one of the worst retailers out there and the sector begins to suffer, Sears is bound to suffer even more than it already has. My guess for the continued sell off recently is a reluctance of anyone to hold going into earnings which are due for Sears on May 25th. I'm guessing the logic is that if the big time retailers like Nordstroms and Kohls had a bad quarter, Sears likely had an even worse one. Add to this all of the recent Sears and Kmart store closures and the market continues to be bearish against Sears. I would expect some short covering next week and a dead cat bounce before earnings, but if they miss badly, I'd expect sub-$10 by the end of next week. All just my opinion. I do not hold a long or short position in SHLD.
