Will Mounting Debt and Plunging Sales Force Sears (SHLD, $0.59) Into a Bankruptcy Filing?
Sears Holding , once a bustling retail chain in the U.S., might be preparing its bankruptcy filing, according to a Wall Street Journal report that cited anonymous sources familiar with the matter.
According to the report, the company has hired the services of M-III Partners to navigate the bankruptcy proceedings, as the retail giant is saddled with $134 million debt due on Oct. 15. Sears has had troubles meeting its debt obligations for a while, even as CEO Eddie Lampert drove several asset liquidations.
Hundreds of Sears and Kmart stores were shuttered down in recent years, amid plunging sales. As of latest quarter, the company has roughly 900 Sears and Kmart stores, compared with more than 4,000 when it merged with Kmart in 2005. Sears has apparently failed to catch up with the e-commerce boom spearheaded by Amazon coupled with traditional player Walmart’s expansion. According to some analysts, the company would need to generate more than $1 billion a year to keep operating - a target that looks too far off for the retailer to meet. Sears has burned through $1.8 billion in cash in its operations during 2017 alone.
Its CEO Eddie Lampert has, over time, tried to salvage the company by chipping in more than $1 billion into the retailer when other sources dried up. This time, if Lampert or other sources are unable to extricate Sears out of its debt troubles and dwindling business, the company could file for a bankruptcy this week, as some reports seem to suggest.
Notable companies
The most notable companies in this group are Lockheed Martin Corp (NYSE:LMT), Boeing Company (NYSE:BA), Northrop Grumman Corp (NYSE:NOC), Antero Midstream Corp (NYSE:AM).
Industry description
The investment seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Global X Defense Tech Index.
The fund invests at least 80% of its net assets, plus borrowings for investment purposes (if any), in the securities of the Global X Defense Tech Index, which may include common stocks, American Depositary Receipts ("ADRs") and Global Depositary Receipts ("GDRs") based on the securities in the underlying index. The underlying index is owned and was developed by Global X Management Company LLC, an affiliate of the fund and the fund's investment adviser. The fund is non-diversified.
Market Cap
The average market capitalization across the Global X Defense Tech ETF ETF is 33.19B. The market cap for tickers in the group ranges from 35.81M to 134.8B. RTX holds the highest valuation in this group at 134.8B. The lowest valued company is CHG at 35.81M.
High and low price notable news
The average weekly price growth across all stocks in the Global X Defense Tech ETF ETF was 8%. For the same ETF, the average monthly price growth was 22%, and the average quarterly price growth was 58%. BBAI experienced the highest price growth at 7%, while LLAP experienced the biggest fall at -5%.
Volume
The average weekly volume growth across all stocks in the Global X Defense Tech ETF ETF was 10%. For the same stocks of the ETF, the average monthly volume growth was 16% and the average quarterly volume growth was -29%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 51
P/E Growth Rating: 41
Price Growth Rating: 46
SMR Rating: 68
Profit Risk Rating: 56
Seasonality Score: -32 (-100 ... +100)