Sears Holdings (SHLD) Update

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I wrote about a possible short squeeze coming on Sears Holdings (SHLD) yesterday, and just wanted to shed more light on how explosive the situation could get.

The spinoff can be considered the 'spark' for a short squeeze, the share structure can be considered the 'fuel'. How so?  Well you have 4 beneficial owners of Sears Holdings (SHLD) shares, holding 84.7% of the outstanding shares (106,443,237 outstanding). When you combine that with the current short interest on the stock, you have more than 100% of the outstanding shares controlled by the 4 owners and the borrowed shares, a molotov cocktail in my humble opinion. One can only guess how small the float is, and this is without taking in consideration any other holders less than 5%..ect.

SHLD insider

I will have more on Sears Holdings (SHLD) in the coming days... Happy Trading!

- JB

Profile photo of jimmybobJimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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