DETROIT -- Capping a Scroogelike holiday season for Kmart, a Wall Street analyst's negative report sent the price of the company's shares plunging by 13.2 percent to $4.48 in heavy trading on Wednesday, marking a five-year low for the nation's No. 2 discount chain.
The analyst, Wayne Hood of Prudential Securities, slashed his per-share earnings estimate for the fourth quarter by more than 50 percent, predicted a loss for the year and urged investors to sell. At the same time, he wrote, "We would not be surprised if the company were to file Chapter 11 bankruptcy if trends do not improve."
But Kmart spokesman Jack Ferry said: "Kmart has sufficient funds and available lines of credit to continue to carry out its strategies."
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