http://www.thecerbatgem.com/2016/10/13/sears-holdings-corp-shld-reaches-new-12-month-low-on-insider-selling.html
6 replies (most recent on top)
Bruce has some liquidity problems I am told. The "boyz" really are trying to polish the turd aren't they? If was Eddie I'd watch out who I piss off because his oh so generous "junior tranche loans" to SHLD are becoming illiquid.
Who is going to buy that debt? There is always Fannie Mae and Freddie Mac. Wouldn't that be something?
"U.S. Government Takes Control of What is Left of Sears; Finds Old Pipe Covered With Asbestos and Lead Paint; U.S. Taxpayer to Fund Clean Up Operations."
What if I am correct about that?
I'm open to the possibility that I'm reading the SEC filing from 10-11-2016 wrong, but it says the price he got was 11.68
He sold for over 17 dollars a share when its been below 12 bucks for a long time. This was fuel by false rumor of the sale of craftsman. Coincidence? I think not
Except Bruce sold a tiny fraction of shares (relative to his holdings and to the volume of the spike) well after the surge in price had retracted.
I'm no fan of sears, but I was expecting a much bigger unload by Bruce during that spike, and no SEC filing suggests anything evil on his part.
Bruce has liquidity problems in his fund, he'll have to start closing positions within a year if things don't change, but I didn't see evil last week and sure as heck was looking for it.
Let me explain to you guys exactly how corrupt this is. They purposely floated a rumor this day in the media that there was a pending sale of craftsman for an estimated 2 billion. This sent Sears stocks soaring. They sold the shares, and then were like oh never mind no sale of craftsman yet. Wall Street corruption at its best.....
OK, it's me. What is this foolishness? OK, my bad, it was Oct 7. Then, however, there is an SEC filing that is released that results in a large decrease in share value. Wait a minute here.
Who is Director Fairholme Capital Management? Bruce Berkowitz is who. Read up for yourself.
Why would a such a small sale and public announcement of a sale of such a small amount of stock result in such a large capital move? I will tell you why, when you take a large long position on an illiquid stock, sometimes you have to churn the market just to see what happens. That is what Berkowitz did and he sold just enough to trigger the technical trading algos to say shld is oversold.
Here is what he is trying to do....lure s---ers, dumb money, algos, into buying SHLD and he is doing this to frontrun the holiday season. He knows as well as the rest of us that there will not be much of a holiday season at Sears.
He is trying to unwind his position and the first one out the door is the best.