Author Topic: SHLDQ - Sears Holdings Corp  (Read 2931181 times)

nkp007

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Re: SHLDQ - Sears Holdings Corp
« Reply #9000 on: October 07, 2017, 12:19:56 PM »
Lampert has overseen one of the largest and longest destruction of value spectacles I have seen.

Would be hilarious if as part of his final farewell he decides to rip the shorts too.

http://www.nasdaq.com/symbol/shld/short-interest

Other than that, who the heck knows what's going to happen.


Greyhound

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Re: SHLDQ - Sears Holdings Corp
« Reply #9001 on: October 07, 2017, 03:34:23 PM »
To be honest, I don't have any hopes for the comps on a short term basis: as everybody there probably knows, retail turnarounds don't tend to work. Sears needs their new businesses to work for it to have positive comps, and I don't know if we can expect that any time soon.

However, I still believe that when you kill everything that is not profitable and cut the costs, you can manage a profit and hence protect the net asset value of the company. And this is all what we need for that investment to work fine today.

In the longer term, if their ventures work, we might have a new business with organic growth, but this sounds very demanding at this stage where they need to stop the erosion of the net asset value of the company (which, I believe, has been cut by 80% since the start of this thread, although I am not counting the right issues and spin-offs when wrtiting that number, and do not assign any value to their SYW asset, which might be conservative).

I agree, turning around a retail business is tough. Even Buffett has said that on more than one occasion citing his Baltimore department store experience as an example.

Sears will certainly need to stop the cash burn in order to retain the NAV.

Keep in mind that beyond the obvious retailing store business and the real estate that comes with that, they do have all the other lines of businesses that could potentially be spun off: KCD, Home services, Innovel, Sears Re (which apparently provides insurance of 20-40% unrelated to its business), SYW, WallyHome, Auto Centres.

On the topic of the auto centres, SHLD recently filed an 8K indicating an amendment to a loan agreement permitting the sale of the auto centres.

Sergio8

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Re: SHLDQ - Sears Holdings Corp
« Reply #9002 on: October 08, 2017, 12:43:07 AM »
I also strongly believe that there are lots of divisions there that make the asset value much higher than today's stock price (at least 50$ per share on a sum of the parts basis) and that they have some flexibility, especially with Home Services, Innovel and real estate which I think are valuable and mostly available for spin or sale. And this flexibility can give us some hope on Sears' ability to realize their asset value.

However, they lost some flexibility with KCD where there is a ring fencing agreement with PGBC which can restrict their moves (as shown with the Craftsman deal, which was not bad, but they have not sold it outright and this might be because of a restriction), and their asset values are still quickly eroding. The actions they have taken this year were mandatory, and I hope it will be a great first step towards an inflexion point. We shall see that soon...

dyow

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Re: SHLDQ - Sears Holdings Corp
« Reply #9003 on: October 13, 2017, 10:04:15 PM »
Edit: it doesn't look like a sale it looks like a distribution of 1.1M shares and 700K shares were given to Bruce.  that seems high to me as a prorata distribution...I guess these are for redemptions but not sure....anyways will look into it


Todays form 4
https://www.sec.gov/Archives/edgar/data/1056831/000091957417007297/xslF345X03/p7682392.xml

Previous form 4
https://www.sec.gov/Archives/edgar/data/1056831/000091957417003017/xslF345X03/p7448797.xml



« Last Edit: October 14, 2017, 10:45:15 AM by dyow »

Greyhound

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Re: SHLDQ - Sears Holdings Corp
« Reply #9004 on: October 15, 2017, 06:36:05 AM »
Edit: it doesn't look like a sale it looks like a distribution of 1.1M shares and 700K shares were given to Bruce.  that seems high to me as a prorata distribution...I guess these are for redemptions but not sure....anyways will look into it


Todays form 4
https://www.sec.gov/Archives/edgar/data/1056831/000091957417007297/xslF345X03/p7682392.xml

Previous form 4
https://www.sec.gov/Archives/edgar/data/1056831/000091957417003017/xslF345X03/p7448797.xml


Here’s the explanation

Represents a pro-rata in-kind distribution of Common Shares of the Issuer by a private fund managed by Fairholme Capital Management, LLC ("Fairholme") to its limited partners into accounts over which the Reporting Persons no longer have beneficial ownership. The distribution was made pursuant to a previously approved plan of liquidation and termination of the private fund. The Reporting Persons disclaim beneficial ownership in the private fund except to the extent of its pecuniary interest, if any, therein.



dyow

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Re: SHLDQ - Sears Holdings Corp
« Reply #9005 on: October 15, 2017, 01:01:47 PM »
Edit: it doesn't look like a sale it looks like a distribution of 1.1M shares and 700K shares were given to Bruce.  that seems high to me as a prorata distribution...I guess these are for redemptions but not sure....anyways will look into it


Todays form 4
https://www.sec.gov/Archives/edgar/data/1056831/000091957417007297/xslF345X03/p7682392.xml

Previous form 4
https://www.sec.gov/Archives/edgar/data/1056831/000091957417003017/xslF345X03/p7448797.xml


Here’s the explanation

Represents a pro-rata in-kind distribution of Common Shares of the Issuer by a private fund managed by Fairholme Capital Management, LLC ("Fairholme") to its limited partners into accounts over which the Reporting Persons no longer have beneficial ownership. The distribution was made pursuant to a previously approved plan of liquidation and termination of the private fund. The Reporting Persons disclaim beneficial ownership in the private fund except to the extent of its pecuniary interest, if any, therein.

I read all the notes I am trying to figure out what it means, if anything. 

tooskinneejs

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Re: SHLDQ - Sears Holdings Corp
« Reply #9006 on: October 16, 2017, 08:31:33 AM »
Bruce Berkowitz has left Sear's board.

Wonder if he plans to liquidate.

Greyhound

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Re: SHLDQ - Sears Holdings Corp
« Reply #9007 on: October 16, 2017, 09:15:26 AM »
Bruce Berkowitz has left Sear's board.

Wonder if he plans to liquidate.

The volumes on the exchange seem to suggest he is dumping them on the market.

Ballinvarosig Investors

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Re: SHLDQ - Sears Holdings Corp
« Reply #9008 on: October 16, 2017, 09:28:13 AM »
Hold on guys, Bruce Berkowitz has slammed the table repeated on Sears. Still incredible value to be unlocked here.


Greyhound

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Re: SHLDQ - Sears Holdings Corp
« Reply #9009 on: October 16, 2017, 09:30:55 AM »
Hold on guys, Bruce Berkowitz has slammed the table repeated on Sears. Still incredible value to be unlocked here.



That screenshot is from Bruce!