biaggio Posted January 13, 2011 Share Posted January 13, 2011 Bronco -Stores on Canada maybe a little nicer than U.S....but I think they are also keeping their cost as low as possible. http://www.theglobeandmail.com/globe-investor/target-snags-zellers-stores-for-18-billion/article1868308/ I can see SHLD doing a deal like this in the future. Apparently other succcessful retailers are interested in entering markets here in Canada...http://www.theglobeandmail.com/report-on-business/target-j-crew-among-us-retailers-interested-in-canada/article1867807/ It makes sense for larger retailers to acquire a block of leases/retail spaces Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 13, 2011 Share Posted January 13, 2011 Biaggio - nice post, thanks. Lampert is a mystery ... a lot of assets to play with but maybe these assets are mixed quality. People love him or hate him... Link to comment Share on other sites More sharing options...
Myth465 Posted January 13, 2011 Share Posted January 13, 2011 Biaggio - nice post, thanks. Lampert is a mystery ... a lot of assets to play with but maybe these assets are mixed quality. People love him or hate him... I dont think he should be running a public company. Mysteries are for private companies. Its been years and no one has any idea what he is up to. Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 13, 2011 Share Posted January 13, 2011 Myth - perhaps you are right, but it does make for an interesting story line. Lampert and Biglari draw Buffett comparisons at times but you really nailed it by questioning their corporate governance. Link to comment Share on other sites More sharing options...
Myth465 Posted January 13, 2011 Share Posted January 13, 2011 Oh I am watching all 3. Buffett - Wont make me rich but you have to watch the master. Lampert - Crazy like a fox, I am very curious to see what the master plan eventually was / is. Biglari - Love him or hate him you have to watch him. I have learned alot from him (Both what to do and not to do). Link to comment Share on other sites More sharing options...
BargainValueHunter Posted January 13, 2011 Share Posted January 13, 2011 http://www.bespokeinvest.com/thinkbig/2011/1/11/sears-shld-incredibly-shrinking-share-count.html Now, if we break out the largest holders of the company, we see that RBS, Ed Lampert's hedge fund, owns 48.2 million shares. Ed Lampert himself owns an additional 17.1 million shares, and Fairholme Funds owns 14.7 million shares. This adds up to around 80 million shares or roughly 75% of all outstanding shares. Currently, there are 12.6 million shares sold short in SHLD. Backing out the holdings of the three largest holders, over 44% of SHLD's remaining shares are sold short. As shown in the chart below, SHLD has been a serial buyer of its stock over the last five years, purchasing an average of 10.2 million shares per year. If the company manages to keep this pace up, either the shorts will be forced to cover or the company's short interest will rapidly rise to 100% of the shares available for trading. http://www.bespokeinvest.com/storage/Short%20Interest%20Sears.png?__SQUARESPACE_CACHEVERSION=1294761372024 Link to comment Share on other sites More sharing options...
Myth465 Posted January 13, 2011 Share Posted January 13, 2011 Doesnt Buffett advocate given owners some sort of idea of intrinsic value before buying them out on the cheap? Our shareholders are long-term and loyal owners. We have the most honest-to-god attitude of ownership of any public company. People buy it to own it. It does mean that if it gets cheap, we won’t be able to buy much. But that’s OK. We’re not looking to make money off shareholders by buying them out at a discount. --- Lampert has purposely not discussed his long term plan or view of value so that he could buy his partners out. I can understand why but its not too fair in my opinion. Also I think you are right from a big picture perspective ValueGeek but I think something has changed. The price he was buying shares back early on were very high. That tells me he was focused on RE which was worth much more prior to the crash. 2 questions. 1. How the hell does Sears.com sell so much? Hell how the hell does Sears B&M still sell stuff (I am guessing middle America)? 2. Any relation to Jim Tisch of Loews? I know that was 3 questions. --- I figure either Lampert is bailing himself out (highly unlikely) or is in Phase 6 or a 9 - 12 phase plan. It should be profitable, but I dont have the capital or brains (like Bruce B or Value Geek) to figure it out. I have my popcorn and will continue to watch though. BargainValueHunter - That my friend is a beautiful chart. Link to comment Share on other sites More sharing options...
Myth465 Posted January 13, 2011 Share Posted January 13, 2011 I think that what Eddie is doing is not disimilar to what Buffett did with Berkshire when he unwound his partnership. This is a good point, I guess Buffett got religious after he had control (Perhaps Lamp and Biglari will follow). I think Berkshire though was a bit more straight forward. Its an interesting watch and I know the long term shareholders will be rewarded. Hopefully I can spot the turn and buy some options. I would today, but cant say this picture will be painted in less than 2 years. Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 13, 2011 Share Posted January 13, 2011 Valuegeek, Is eddie an employee? I think you need to be an employee to take a salary. Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 13, 2011 Share Posted January 13, 2011 I would also argue that if Lampert took all the cash from the buybacks and put them towards debt reduction, the company would be in much better shape. Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 13, 2011 Share Posted January 13, 2011 I'll play semantics here and I know your response, but a buyback isn't accretive at all. 0% for SHLD. Neither earnings on the P&L or cash flow will be increased. Paying down debt will of course increase net income and increase cash flow. I'll stop busting stones now and mention I am short puts on Sears. It is interesting and it does get undervalued. Lampert is a smart guy, but I will never believe some of these buybacks were the best allocation of capital at the time they were done. Link to comment Share on other sites More sharing options...
rogermunibond Posted January 13, 2011 Share Posted January 13, 2011 Lampert is not the CEO. He is only the Chairman. Agree with Myth, that is pure chart porn. Thanks for posting BVH. Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 13, 2011 Share Posted January 13, 2011 Value, I told u I would know ur response. I guess all buybacks are excessive then unless the company loses money Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 13, 2011 Share Posted January 13, 2011 I meant accretive, not excessive. I was typing that in my second office (a stall) and the iphone may have changed the wording. Link to comment Share on other sites More sharing options...
bargainman Posted January 14, 2011 Author Share Posted January 14, 2011 Boardmember and longtime ESL Investor Thomas Tisch owns another 3.8M shares as well. Where do you see this information? I don't see Tisch's name under yahoo, is it held under another name? On the other hand I don't see Eddie Lampert's name under yahoo either.. weird... http://finance.yahoo.com/q/mh?s=SHLD+Major+Holders Link to comment Share on other sites More sharing options...
Grenville Posted January 14, 2011 Share Posted January 14, 2011 This is an old article on Eddie, but it makes for a good re-read... http://www.businessweek.com/magazine/content/04_47/b3909001_mz001.htm Hi valuegeek, Thank you for your commentary. Thanks for the link! Link to comment Share on other sites More sharing options...
twacowfca Posted January 14, 2011 Share Posted January 14, 2011 I meant accretive, not excessive. I was typing that in my second office (a stall) and the iphone may have changed the wording. You must have been flushed with pride when you launched your missive. :D Link to comment Share on other sites More sharing options...
Myth465 Posted January 14, 2011 Share Posted January 14, 2011 I meant accretive, not excessive. I was typing that in my second office (a stall) and the iphone may have changed the wording. You must have been flushed with pride when you launched your missive. :D You guys know how to ruin a Friday morning cup of coffee and bagel. Link to comment Share on other sites More sharing options...
Guest Posted January 14, 2011 Share Posted January 14, 2011 I meant accretive, not excessive. I was typing that in my second office (a stall) and the iphone may have changed the wording. You must have been flushed with pride when you launched your missive. :D You guys know how to ruin a Friday morning cup of coffee and bagel. hahaha. ;D Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 14, 2011 Share Posted January 14, 2011 I can't be the only one here that mutitasks. Link to comment Share on other sites More sharing options...
rogermunibond Posted January 14, 2011 Share Posted January 14, 2011 You mean #1 AND #2... Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 14, 2011 Share Posted January 14, 2011 Roger - this is the 21st century - my multitasking includes #1 and #2 and reading Corner of Berk and Fairfax posts. Most productive 5 - 10 minutes of my day. Myth - sorry about your coffee and bagel. TWA - very funny, I like that. Unfortunately, I now feel guilty turning in what was otherwise intelligent board members into low life bathroom humor heathens. Link to comment Share on other sites More sharing options...
rogermunibond Posted January 14, 2011 Share Posted January 14, 2011 Bronco - This is why you truly are a hero member and I just a junior. :) Link to comment Share on other sites More sharing options...
twacowfca Posted January 15, 2011 Share Posted January 15, 2011 Roger - this is the 21st century - my multitasking includes #1 and #2 and reading Corner of Berk and Fairfax posts. Most productive 5 - 10 minutes of my day. Myth - sorry about your coffee and bagel. TWA - very funny, I like that. Unfortunately, I now feel guilty turning in what was otherwise intelligent board members into low life bathroom humor heathens. Some time ago, a lady in our office was transcribing some of my dictation for a new book when she heard the sound of rushing water in the background. She called others over and said, "Listen to this. Does this sound like what I think it does?" Another lady replied, "Now we know where he gets all his ideas!" Link to comment Share on other sites More sharing options...
snailslug Posted January 24, 2011 Share Posted January 24, 2011 Urban malls on the rebound http://www.latimes.com/business/la-fi-commre-retail-20110123,0,2092512.story Link to comment Share on other sites More sharing options...
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