Sears Falls 12% After Warning Of Ability To Continue As A Going Concern

Sears Holdings Corp SHLD shares are trading lower by $1.10 (12.5 percent) at $8.00 in Wednesday's session.

After Tuesday's close, the company warned in its recent 10-K "our historical results indicate substantial doubt exists related to the company's ability to continue as a going concern." In other words, the company may be facing bankruptcy.

Although the end could be near for Sears, its share price isn't indicating that at this time. While it's lower by nearly 11 percent, it's still far away from $0.00.

Instead, its share price is reflecting the Street's perception of the fair market value of its valuable real estate holdings, which may be much harder to get the true value for if the company goes into bankruptcy.

After a lower open, Sears' stock continued in that direction until it bottomed at $7.77 and is now attempting to remain in the $8.00 handle. That low marks the lowest level for the issue since it bottomed on March 9 at $7.66.