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SHLD?


bargainman

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Boys, some of my best thinking goes on in there.  My legs go numb due to my reading newspapers and 10-K's in there!  ;D 

 

Thus the reason I don't get an iPad.  I wouldn't want to take it in there.  And Bronco, you take your iPhone in there with you?  Really...really?  Cheers!

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"Sears Holdings Corporation submitted an application under Rule 24b-2 requesting

confidential treatment for information it excluded from the Exhibits to a Form 8-K filed

on January 21, 2011."

-filing with SEC

 

Does anyone know what these are?

 

From what I've seen, SHLD has redacted some counter-party information in a filing regarding new letters of credit with Wells Fargo.

 

Filing here:

http://www.rocketfinancial.com/FetchDoc.aspx?id=12212206&fid=3076289

 

I can't say I know the details, but Rule 24b-2 is related to investment mangers 13F filings.  I'm guessing the counter-party wanted confidentiality until they filed their own 13F.  At some point, I guess we'll know who it is.  Perhaps Fairholme or ESL.

 

 

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ESL just disclosed they own 5.8% of Gap Inc.  Is there any chance this could be related to the 2 CT Orders that Sears has filed in the last couple of months or am I way off base?

 

I don't think it's likely.  Probably Eddies just likes the value proposition of GPS, similar to Autozone or AutoNation.

 

GPS has a market cap of $13+B and SHLD is is $9.7B.  I don't think any kind of acquisition is possible.

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You're probably right... although the situation feels somewhat similar the Kmart/Sears merger... (Kmart had a smaller market cap vs. Sears I think [but not positive], ESL had a controlling stake in Kmart and a low teens stake in Sears]. 

 

Anyway, it's just food for thought - like everyone else I really no idea what will happen in the Lampert/Sears saga (if anything at all). 

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SHLD and BH are similar in that they are 1) two of the more controversial stocks/businesses and 2) have very colorful, enigmatic leaders with past stories of success that people want to translate to future success.

 

I have no idea what SHLD will do in the future.  Is .com the savior?  Is Sears Canada a hidden gem?  Will the real estate division EVER play out?  Will shop in shop work for them?  Does Kmart FCF justify an investment in SHLD? 

 

Nothing really sticks out to me as ONE reason to invest, other than maybe Lampert.  Will this goose lay a golden egg, or a steamy turd?

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What Valuegeek said... I threw up a little in my mouth at the comparison however superficially it was intended. 

 

No offense to you Bronco, I doubt you meant it the way it came across, but we should never stray real records of value creation that have stood the test of time with the questionable actions of Mr. Biglari despite how nice his record appears today (and it does look good).

 

Eddie does at SHLD what Sardar said he would do... profit with shareholders, not off of them.

 

Ben

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How is Sears a controversial business? Did they start selling porn or something?

 

Just read the PR about the BH reverse split. Biglari may be good at investing, but his ego seems to lead him to do silly things, like stupid tender offers that people probably laugh off. At least Lampert pulled off some big stuff using Kmart to acquire Sears. As others have said, Lampert does not use SHLD to pay himself. He keeps his hedge fund compensation in his hedge fund.

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eddie has doubled his investors' money over 7X in a row over the last 23 years (roughly 24% compounded and 14,000% cumulative).

 

sardar has done two silly reverse stock splits in the last year.  

 

I agree with point 1).  But on point 2), there is simply no comparison between Eddie and Sardar.   

 

Honestly I think some on this board are part of the problem. This guy gets way too much press.

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. This guy gets way too much press.

 

Myth, are you talking about Biglari?

 

Yes he is mentioned in every other thread.

 

Top Managers

Best Value Investors

Takeover Targets

Acquires

Owner Manager Threads

Next Buffett

 

----

 

There are at least 2 dozen guys with better records over much longer periods of time. He has done decent things for a young guy, but why does he warrant this much press and discussion and comparison.

 

At least Kobe and Lebron were worthy of being compared to Buffett. What has this guy really done that entitles him to be compared to the greatest investor and second best capital allocator in modern finance?

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