Sears - A prime example of accumulationI was looking at Sears this winter around 2 cents, it was a simple chart request from someone, and that lead to me following it. I was noticing the .01-.03 range and found this intriguing, even though this might not be the most fundamental play. Then I tried to buy it around .02 but Fidelity wouldn't let me. I'm now seeing how that accumulation range really played out. A little research lead me to this:
Via Benzinga:
The “old” Sears is however in litigation with the “new” Sears, claiming that the new Sears owes an additional $57.5 million to the old Sears from the sale. In addition, a pending lawsuit filed by old Sears in April 2019 alleges that Lampert and his associates siphoned billions of dollars in assets from it as the company descended into bankruptcy.
At best, the future outlook of the old Sears Holdings company is murky. While Lampert maintains that he will turn the new company around, the old Sears Holdings that still has its stock listed on the OTC market as SHLDQ would not participate because the new Sears is currently wholly owned by Lampert.
On the other hand, if the lawsuits filed by the old Sears against Lampert and associates go to trial and win or are settled favorably, then having a stake in SHLDQ stock might make sense to a trader or investor comfortable with the high risk involved.
NFA, DYOR
