Sears Holdings Corp. (fka SHLDQ)

[retireat40]

Posted 18 hours ago:

“Sears Holdings stock has surged in the past few days, lifting the company's market cap above $100 million. But even if the "new" Sears manages to become profitable, shares of the current Sears Holdings are virtually worthless. ESL Investments is buying nearly all of the company's assets for a little over $5 billion, whereas Sears Holdings' liabilities are more than twice that amount (excluding intercompany claims).

The sale proceeds and any other cash that becomes available will be divided up among creditors. The only money that shareholders can reasonably hope for is a small settlement from ESL to resolve claims that it improperly siphoned off assets from Sears Holdings, primarily through the spinoffs of subsidiaries like Seritage Growth Properties.”