Sears Jumps as Traders React to Takeout Buzz

On a fundamental basis, Sears Holdings (SHLD) is an absolute mess. Sales have slipped well below expectations and the company’s future is murky at best. And CIT Group (CIT) recently halted loans to Sears’ suppliers. But the anxiety surrounding Sears can also lead to sharp moves higher for the stock.
Today, shares are up about 7%, apparently on speculation that the company could be taken private by top shareholder Eddie Lampert and private equity heavyweight Bruce Berkowitz. Trading in the shares has already doubled the normal volume, and options trading is even more elevated, Reuters noted.
Of course, it may simply be a fool’s game trying to figure out what exactly is making the stock move.
Sears stock has fallen 51% in the past year. On days when the shares rise, it tends to be on speculation about Lampert’s motives. But without an actual buyout, that kind of momentum could be short-lived.