Sears Holdings Corporation (Public, NASDAQ:SHLD) shares are down 4.5% today after BofA said they won’t renew Sears $1 billion credit. I’m sure Eddie Lampert could open his wallet and pay that on the spot if need be, so shares of SHLD at $99 are looking mighty tempting.

The agreement is scheduled to end in July 2008. As of Friday, only $1.6 million in letters of credit were outstanding under that agreement, Sears said.

Sears, whose chairman in hedge fund investor Eddie Lampert, said most of its outstanding credit is issued under its $4 billion, five-year revolving credit facility which expires in March 2010, which has a $1.5 billion letter of credit sublimit.

The Hoffman Estates, Ill., company said it is now using its second letter of credit so the termination will not have any effect on its liquidity.

Come on Bof A, if you won’t lend to American retailers, what hope and message does that send to struggling U.S. retailers?

Sears shares have been cut in half in the last year and it will likely get worse before the situation improves.

Gas prices approaching $4 and life in general is getting more expensive with rising food costs. Retailers like Sears are going to have a tough 2008.

The Masters like SHLD under $100, we think it could drop even lower but never underestimate Eddie Lampert.

Last 5 posts by Eric Cheshier

• Why are Gilead Sciences (NASDAQ:GILD) shares falling? - October 21st, 2009
• Yamana Gold (AUY): The only stock up today - April 20th, 2009
• Gold stock to watch: Minefinders Corp.(MFN) - February 23rd, 2009
• Intermune (ITMN) rises 35% - February 3rd, 2009
• Bank of America (BAC) shares oversold - January 19th, 2009