Sears Holdings (SHLD) has come under extreme pressure lately after a Q4 warning and fears of credit tightening around suppliers. The stock recently bounced back to above the gap down from the December warning, but it is has now closed down for five consecutive days.
What stopped the free fall to below $30 from a high above $80 in October was news that Chairman Eddie Lampert accepted management fees from his ESL Investments vehicle in Sears stock. Along with other transfers, Eddie obtained over $150M of stock in early January according to this Wall Street Journal report.
One has to wonder why a legendary investor like Eddie would take stock in a company like Sears unless he knows that bankruptcy isn't a looming issue. Would Eddie really just throw $150M down the drain?
Read the full article at Seeking Alpha.
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