Replies to post #35113 on Sears Holdings Corp. (fka SHLDQ)

[chemist72]

There is absolutely nothing to recommend SHLDQ as an honest investment.

Its in bankruptcy, perhaps due in part to "bad business practice", but other factors are in play as well.

Sears (SHLDQ) was under such a heavy debt load, that even the $5.2B that Eddie Lampert (ESL) paid for their best assets was only able to pay off a part of that debt.

From financial filings (both with the SEC and with the BK court), you can see that Sears still has about $6.5B in claims that will never be fully paid. Sears has recently estimated that the cash it will have available will only be able to pay off its most senior debt. While those on the lower end of the totem pole will only get about 2.5 pennies on the dollar or nothing at all (including SHLDQ equity holders).

As the process moves along in BK court, SHLDQ share price should continue to decline, until the last remaining holders are MMs and those who are simply unwilling to sell their shares at any price for whatever reasons they imagine.

The only people who might get "rewarded" will be nimble traders who are able to take advantage of short term price fluctuations of SHLDQ. Other than that, I can't see anyone holding these shares getting rewarded. Unfortunately that's the "reality" of the current situation of Sears and its common shares, SHLDQ.

all imho.

[VelvetJones]

So you don't think the law matters? As the only way shareholders would see a penny is if creditors are defrauded, and that is not going to happen. Stockholders are the last in line to get paid. Until everyone in front of them is paid in full stockholders get nothing.

[Crusen]

It's not a gamble. It is common knowledge and has been for some time the common shares would be wiped out, that is a sure thing.