Dark pools and naked shorts
I am not so sure either would cause that.
SHLD is unusual in that the insiders own a lot of stock, making is risky for anyone shorting the shares. I am not had a chance to look, but I expect the rebate rate is a little high for SHLD.
The CEO shoveling in his own money seems incredibly stupid thing to do, and even with the fact that it looks like the fund's loans are somewhat secured, it still looks like a 'bad deal'. Once the company crashes in Chap 11, I would be surprised if the brand name of Sears to have any value afterwards. Other side of the brand name, the only thing left of value is some real estate, in empty malls, that no one wants.
It looks like this is on track for a larger loss than those fund had with Radio Shack.
Louis J. Desy Jr.
