Sears Jumps After Force Capital Management Discloses Stake
The shares rose 7.5 percent to $43.42 at the close. The New York-based investment firm reported its stake in a regulatory filing yesterday.
Chief Executive Officer Lampert has been selling and spinning off assets to bolster cash reserves as Sears’ retail sales have slid. The company last month forecast a fourth-quarter loss and said sales during the holiday period dropped. The gain in the stock today “doesn’t reflect fundamentals,” Matt McGinley, a managing director at Institutional Strategy and Investments in New York, said in an e-mail.
“Operationally, Sears had a horrible holiday, and the cash burn that they will report in a few weeks will reflect that,” McGinley said.
Howard Riefs, a spokesman for Sears, declined to comment by e-mail on Force Capital’s stake.
Hoffman Estates, Illinois-based Sears has declined 11 percent this year.
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