A friend of a friend, who has been in retail his whole career, thinks Sears is in big trouble. I have no idea if he knows what he's talking about. The chart looks flat to me, I would have expected it to be in a down trend already IF this is true. But just in case thought I'd mention it.
This is nothing new, sears is in trouble, I have said this for the last few years, I am surprised its taking this long. SHLD stock is very overpriced, I wouldnt be surprised if it loses half of its value in the next 6-12 months!
The impression I had about retailers such as Sears, is they made their money on the credit. The retail product was the vehicle to get the credit sale where the real money was made. Credit is in the dumpster.
Following from this thread http://www.elitetrader.com/vb/showthread.php?threadid=246497 atticus, I am wondering if you have a CUSIP or web link to SHLD senior bonds?
Thanks ogarbitrage. However the yield on that bond is less than 10% according to this link: http://cxa.gtm.idmanagedsolutions.com/finra/bondcenter/BondDetail.aspx?ID=ODEyMzUwQUU2 CUSIP: 812350AE6 IBKR reference: IBCID93564153
You're not going to see much of a yield on the bonds due to the borrow on the short, but at least it's covered. YTM in the 13s and borrow in the 12s, annualized. It's hard to find a deal like this that is financed. I can get you the CUSIPs on any of these. The 13.9er is 812404AX9