Why Sears Holdings Stock Was Rallying Thursday

Shares of Sears Holdings (NASDAQ: SHLD) were surging this morning after an investor sent an open letter to the retailer's board, calling for the company to go private and for an investigation into recent short-selling. As a result, Sears shares were up 8% as of 11:16 a.m. EST.

Image source: Sears.

Memento, a value-investing group owned by the Swiss-based Spadone family with 2 million shares in Sears, sent the letter this morning, arguing that excessive short interest has restricted the stock's float, making it difficult to buy shares, which it believes has been a primary cause of the stock's volatility over the last two years and has pressured the stock lower.

Source: Fool.com