Author Topic: SRG - Seritage Growth Properties  (Read 534212 times)

Rasputin

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Re: SRG - Seritage Growth Properties
« Reply #690 on: August 03, 2018, 08:25:57 AM »
For me, the issue with Sokol-Lubrizol was the timing of his Lubrizol share purchases.  IIRC, Sokol bought those shares just weeks prior to bringing the deal to Buffett. 

To me, it's different situation vs Buffett-SRG/Munger-BYD/Weschler-DVA/Lou Simpson - Cort furniture.

Those people have had investments in those companies for years prior to Berkshire's involvement. 

IIRC Buffett said when Sokol told him that he had purchased Lubrizol shares, Buffett thought Sokol meant he has owned the shares personally for a while, Buffett didn't ask him when Sokol bought the shares. 


Gregmal

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Re: SRG - Seritage Growth Properties
« Reply #691 on: August 03, 2018, 08:31:40 AM »
For me, the issue with Sokol-Lubrizol was the timing of his Lubrizol share purchases.  IIRC, Sokol bought those shares just weeks prior to bringing the deal to Buffett. 

To me, it's different situation vs Buffett-SRG/Munger-BYD/Weschler-DVA/Lou Simpson - Cort furniture.

Those people have had investments in those companies for years prior to Berkshire's involvement. 

IIRC Buffett said when Sokol told him that he had purchased Lubrizol shares, Buffett thought Sokol meant he has owned the shares personally for a while, Buffett didn't ask him when Sokol bought the shares.

Buffett is a hypocrite. Is the aforementioned any different than a guy buying stock and then pitching it at a conference? Sokol had no control over whether Buffett bought the company or not. I don't think he did anything wrong at all. Warren just likes to polish his image every so often.

You know how many people probably pitch WB deals on a regular basis? The notion that Sokol buying shares because he knew it would be bought are crazy. If anything he's taking the same gamble many investors do on a regular basis. Irresponsible, but nothing wrong with it.

GCA

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Re: SRG - Seritage Growth Properties
« Reply #692 on: August 03, 2018, 05:51:45 PM »
Here let me stir up some trouble:  I think this move is overblown... all they did was refinance their debt!  And not on fantastic terms for SRG!  The move is a short squeeze and the price will float back down to the low $40s until some real news comes out.

Gregmal

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Re: SRG - Seritage Growth Properties
« Reply #693 on: August 03, 2018, 06:05:55 PM »
Here let me stir up some trouble:  I think this move is overblown... all they did was refinance their debt!  And not on fantastic terms for SRG!  The move is a short squeeze and the price will float back down to the low $40s until some real news comes out.

I'd actually concur. I had a small position I bought just to keep an eye on this, mainly because its such a hard on for many value investors and IMO if there's any truth to Berkowitz's ridiculous values given to SHLD, it's likely buried in SRG now. I'd been relatively disappointed with it and exited the position yesterday.

RadMan24

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Re: SRG - Seritage Growth Properties
« Reply #694 on: August 03, 2018, 06:12:11 PM »
For me, the issue with Sokol-Lubrizol was the timing of his Lubrizol share purchases.  IIRC, Sokol bought those shares just weeks prior to bringing the deal to Buffett. 

To me, it's different situation vs Buffett-SRG/Munger-BYD/Weschler-DVA/Lou Simpson - Cort furniture.

Those people have had investments in those companies for years prior to Berkshire's involvement. 

IIRC Buffett said when Sokol told him that he had purchased Lubrizol shares, Buffett thought Sokol meant he has owned the shares personally for a while, Buffett didn't ask him when Sokol bought the shares.

Buffett is a hypocrite. Is the aforementioned any different than a guy buying stock and then pitching it at a conference? Sokol had no control over whether Buffett bought the company or not. I don't think he did anything wrong at all. Warren just likes to polish his image every so often.

You know how many people probably pitch WB deals on a regular basis? The notion that Sokol buying shares because he knew it would be bought are crazy. If anything he's taking the same gamble many investors do on a regular basis. Irresponsible, but nothing wrong with it.

Really? Buffett, a multi-billionaire, owns $85 million of Seritage common stock, disclosed his investment in 2015. What conflict is there exactly? Through his personal investment, he gained an understanding of the investment. When an opportunity to invest a large sum of money came along, he invested $2 billion earning 7% rates, which by the way, is a fraction of his cash pile at Berkshire. He mentioned he would have owned the equity for Berkshire if he could have a bigger stake, but that's not doable. So all these comparisons about Buffett having a personal stake being boosted because of this debt investment is non-sense. Further, the 7% he earns for Berkshire is greater than the investment value of his own personal stake.

Ya'll need to take a chill pill.

RadMan24

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Re: SRG - Seritage Growth Properties
« Reply #695 on: August 03, 2018, 06:14:14 PM »
Here let me stir up some trouble:  I think this move is overblown... all they did was refinance their debt!  And not on fantastic terms for SRG!  The move is a short squeeze and the price will float back down to the low $40s until some real news comes out.

Please explain how extending the loan 4 years at 0.5% increase in rates, removing the requirement to repay mortgage loans with asset sale proceeds, and closing the liquidity gap needed to fund redevelopments, is not real news. Thank you.

Gregmal

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Re: SRG - Seritage Growth Properties
« Reply #696 on: August 03, 2018, 06:18:19 PM »
For me, the issue with Sokol-Lubrizol was the timing of his Lubrizol share purchases.  IIRC, Sokol bought those shares just weeks prior to bringing the deal to Buffett. 

To me, it's different situation vs Buffett-SRG/Munger-BYD/Weschler-DVA/Lou Simpson - Cort furniture.

Those people have had investments in those companies for years prior to Berkshire's involvement. 

IIRC Buffett said when Sokol told him that he had purchased Lubrizol shares, Buffett thought Sokol meant he has owned the shares personally for a while, Buffett didn't ask him when Sokol bought the shares.

Buffett is a hypocrite. Is the aforementioned any different than a guy buying stock and then pitching it at a conference? Sokol had no control over whether Buffett bought the company or not. I don't think he did anything wrong at all. Warren just likes to polish his image every so often.

You know how many people probably pitch WB deals on a regular basis? The notion that Sokol buying shares because he knew it would be bought are crazy. If anything he's taking the same gamble many investors do on a regular basis. Irresponsible, but nothing wrong with it.

Really? Buffett, a multi-billionaire, owns $85 million of Seritage common stock, disclosed his investment in 2015. What conflict is there exactly? Through his personal investment, he gained an understanding of the investment. When an opportunity to invest a large sum of money came along, he invested $2 billion earning 7% rates, which by the way, is a fraction of his cash pile at Berkshire. He mentioned he would have owned the equity for Berkshire if he could have a bigger stake, but that's not doable. So all these comparisons about Buffett having a personal stake being boosted because of this debt investment is non-sense. Further, the 7% he earns for Berkshire is greater than the investment value of his own personal stake.

Ya'll need to take a chill pill.

I think you misunderstood or misinterpreted my post. Buffett is a hypocrite. He's demonstrated that a bunch of times over the past decade. But I think I clearly stated this issue about conflict of interest is a joke and I can't understand why it's even being discussed. Any rational owner of many businesses would try to use their network to create synergies. Nothing wrong with that.

RadMan24

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Re: SRG - Seritage Growth Properties
« Reply #697 on: August 03, 2018, 06:22:53 PM »
Ah, understand.

LongTermView

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Re: SRG - Seritage Growth Properties
« Reply #698 on: August 03, 2018, 06:33:10 PM »
Here's a look at the 2Q18 at share GLA:
58.5% Sears (.719*.813)
12.0% in-place 3P (.147*.813)
10.9% SNO 3P (.134*.813)

18.7% not leased

Regarding the 18.7% of at share GLA that isn't leased, how much of that is under development?

Spekulatius

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Re: SRG - Seritage Growth Properties
« Reply #699 on: August 04, 2018, 05:10:38 AM »
Here let me stir up some trouble:  I think this move is overblown... all they did was refinance their debt!  And not on fantastic terms for SRG!  The move is a short squeeze and the price will float back down to the low $40s until some real news comes out.

Yes, I believe this too. I donít own SRG, but if I did, it would be gone.
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