texual Posted March 21, 2013 Share Posted March 21, 2013 It's a very confusing and odd situation to say the least however I will add that orchard does not seem to be key in the future of sears or its products. It sells craftsman tools but in all other cases I don't think this chain of stores is worth investigations because the controlling parties seem to know more or have a different idea of what this will be worth. The common could just fall to a dollar and who knows what? I'd stay away unless you feel there is sufficient business potential. I seem to think the locations alone make things bad, being regional to California. But good luck to those who own it. I got out as soon as I got my hands on the shares. I so far was dead wrong about the hometown and outlet shares so I'm pretty much 1 for 1 Link to comment Share on other sites More sharing options...
Grahamisback Posted April 12, 2013 Share Posted April 12, 2013 Orchard Supply Hardware Stores Corporation (Nasdaq: OSH) shares were halted on Friday after the stock traded lower following news out of WSJ that the company hired restructuring lawyers at DLA Piper. Reports say FTI Consulting is also working with the company. Talks with lenders have intensified in recent weeks, said sources cited by WSJ. The company must strike a deal with lenders by May 1st to avoid default on payment of a $55.2 loan, according to previous filings. http://www.streetinsider.com/Corporate+News/Orchard+Supply+Hardware+%28OSH%29+Halted+on+News+of+Possible+Restructuring/8250292.html Lampert has also sold some common and even preferred stocks for some weeks : http://www.sec.gov/Archives/edgar/data/860585/000118143113022019/xslF345X03/rrd376720.xml http://www.sec.gov/Archives/edgar/data/860585/000118143113020660/xslF345X03/rrd376025.xml http://www.sec.gov/Archives/edgar/data/860585/000118143113019420/xslF345X03/rrd375413.xml http://www.sec.gov/Archives/edgar/data/860585/000118143113018648/xslF345X03/rrd375066.xml Link to comment Share on other sites More sharing options...
BargainValueHunter Posted April 12, 2013 Share Posted April 12, 2013 Down 50%! Link to comment Share on other sites More sharing options...
jay21 Posted April 12, 2013 Share Posted April 12, 2013 Without being results oriented, I am curious to see how many people own SHLD and the spin off companies. Isn't there a little bit of a broken thesis if you own both? Wasn't the line of thinking that SHLD would liquidate the poorer stores and keep the profitable ones? How was this reconciled? That you got a cheap enough price or the spins were "non-core"? Link to comment Share on other sites More sharing options...
CorpRaider Posted April 12, 2013 Share Posted April 12, 2013 Orchard Supply Hardware Stores Corporation (Nasdaq: OSH) shares were halted on Friday after the stock traded lower following news out of WSJ that the company hired restructuring lawyers at DLA Piper. Reports say FTI Consulting is also working with the company. Talks with lenders have intensified in recent weeks, said sources cited by WSJ. The company must strike a deal with lenders by May 1st to avoid default on payment of a $55.2 loan, according to previous filings. http://www.streetinsider.com/Corporate+News/Orchard+Supply+Hardware+%28OSH%29+Halted+on+News+of+Possible+Restructuring/8250292.html Lampert has also sold some common and even preferred stocks for some weeks : http://www.sec.gov/Archives/edgar/data/860585/000118143113022019/xslF345X03/rrd376720.xml http://www.sec.gov/Archives/edgar/data/860585/000118143113020660/xslF345X03/rrd376025.xml http://www.sec.gov/Archives/edgar/data/860585/000118143113019420/xslF345X03/rrd375413.xml http://www.sec.gov/Archives/edgar/data/860585/000118143113018648/xslF345X03/rrd375066.xml Yeah it was odd. He seemed to have a standing order to hit the bid above $4 at least on the common. I mean he was reporting sales of 200 shares when he has 1 million plus but always above $4? I lightened up a lot @ $4 after he filed like his third S-4. I'm trying to figure out what he is playing at, because I think I recall the preferred gets $4 in cash if new shares are issued. Complete speculation here that maybe he knew it was looking like some debt or preferred with a $4 strike price conversion feature were coming down the pipe. It is interesting to follow but I do still hold a bit with a $6.50 cost basis, so I am not a totally disinterested observer. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted April 12, 2013 Share Posted April 12, 2013 Fairholme owned 12.5% of outstanding shares @ year end. Horizon Kinetics owned a chunk as well. Link to comment Share on other sites More sharing options...
texual Posted April 12, 2013 Share Posted April 12, 2013 They've all been burned on this. I wonder what Bruce would say about this or if it changes anything with regard to Sears. Link to comment Share on other sites More sharing options...
compoundinglife Posted April 13, 2013 Share Posted April 13, 2013 I'm trying to figure out what he is playing at, because I think I recall the preferred gets $4 in cash if new shares are issued. I have read the prospectus a few times since the spin off and never saw anything indicating the perfs get anything if new shares are issues. The prefs need to be redeemed before they can pay dividend on the common or buy back common, but there are some clauses to work around that as well with BOD approval. In the prospectus it also says they can issue up to a total of 15M perfs in the future (20 minus the existing 5) of varying features. The prefs traded as low as 35 cents on Friday, closed at 95 cents. Illiquid though. I do find it funny that the stock dropped on potential restructuring news but the common still traded at $2 while the next rung up in the capital structure could be purchased for 35 cents to 95 cents, the prefs would need to get the full 4.16 per share before common holders see anything. Link to comment Share on other sites More sharing options...
Palantir Posted April 13, 2013 Share Posted April 13, 2013 I wasnt on this forum when the spinoff took place, so pardon if this has been discussed. Did anyone figure out what the preferred's...do? I read the prospectus many times, and they have no rights, no dividends, but they just...exist. Perhaps they exist to prevent a takeover, which was the only rationale I could see. Link to comment Share on other sites More sharing options...
Guest wellmont Posted April 13, 2013 Share Posted April 13, 2013 They've all been burned on this. I wonder what Bruce would say about this or if it changes anything with regard to Sears. this amounted to pennies under the couch cushion for anybody who got shares in the spin off. don't forget eddie inherited OSH when he bought sears. It never fit. He tried to get rid of it before the bubble burst in 2008. But he couldn't even get p/e to buy it from him. you could argue that he pawned off some debt on another entity. debt that would have been the responsibility of shld had he not structured the osh spin off as he did. it was designed to be high risk high reward structure. Link to comment Share on other sites More sharing options...
compoundinglife Posted April 13, 2013 Share Posted April 13, 2013 They've all been burned on this. I wonder what Bruce would say about this or if it changes anything with regard to Sears. this amounted to pennies under the couch cushion for anybody who got shares in the spin off. don't forget eddie inherited OSH when he bought sears. It never fit. He tried to get rid of it before the bubble burst in 2008. But he couldn't even get p/e to buy it from him. you could argue that he pawned off some debt on another entity. debt that would have been the responsibility of shld had he not structured the osh as he did. it was designed to be high risk high reward structure. Rough back of napkin calculation is that ESL and co has received proceeds of just under $1,000,000 from all of his sales of OSH and OSHSP, so yeah not too much for him in the grand scheme of things. Link to comment Share on other sites More sharing options...
compoundinglife Posted April 13, 2013 Share Posted April 13, 2013 Interesting with regards to tax treatment of the prefs: http://beta.fool.com/bivio/2012/01/10/surprise-you-got-more-just-osh-shares-recent-shld-/658/ Link to comment Share on other sites More sharing options...
CorpRaider Posted April 27, 2013 Share Posted April 27, 2013 OSH is predicting 9-11% comp store sales growth in current quarter and got a further extension of their covenant waiver. http://finance.yahoo.com/news/orchard-supply-hardware-stores-corporation-200500072.html Link to comment Share on other sites More sharing options...
CorpRaider Posted June 3, 2013 Share Posted June 3, 2013 Wow. Look at the move in this sucker. No news yet, maybe just a short squeeze? Over 1/4 of the float was short. Link to comment Share on other sites More sharing options...
GregS Posted June 4, 2013 Share Posted June 4, 2013 I couldn't find any news. Possible short squeeze, and/or perhaps it's getting pumped on some BB somewhere? Small market cap, low share price, perfect for pumping. Link to comment Share on other sites More sharing options...
CorpRaider Posted June 4, 2013 Share Posted June 4, 2013 I couldn't find any news. Possible short squeeze, and/or perhaps it's getting pumped on some BB somewhere? Small market cap, low share price, perfect for pumping. Yeah I couldn't find any news either. The BB has some stroke if that's the case because the volume spike has been pretty significant (even though its a micro-cap). I just held onto a little as a result of the spin. It has been pretty interesting to watch. Link to comment Share on other sites More sharing options...
Matson125 Posted June 11, 2013 Share Posted June 11, 2013 Bruce Berkowitz liquidates his stake. http://www.sec.gov/Archives/edgar/data/896842/000091957413003779/d1389067_13g-a.htm Link to comment Share on other sites More sharing options...
muscleman Posted June 11, 2013 Share Posted June 11, 2013 Bruce Berkowitz liquidates his stake. http://www.sec.gov/Archives/edgar/data/896842/000091957413003779/d1389067_13g-a.htm That is no surprise, isn't it? http://www.alternativefuse.com/rssreader/news/orchard-supply-osh-is-reportedly-considering-filing-for-bankruptcy-next-week-talks-with-lenders-about-restructuring-261m-in-debt-and-capital-lease-obligations-is-said-to-be-ongoing-while-several-companies-are-already-consider OSH and SCC's debt is non-recourse to SHLD. I am trying to figure out if other subsidiaries' debt are similar. :) Link to comment Share on other sites More sharing options...
CorpRaider Posted June 17, 2013 Share Posted June 17, 2013 Filed for Ch 11. LOW is stalking horse bidder at $205 MM + assumption of trade payables. Link to comment Share on other sites More sharing options...
Josh4580 Posted June 17, 2013 Share Posted June 17, 2013 What does this mean for the preferred shares? Link to comment Share on other sites More sharing options...
muscleman Posted June 17, 2013 Share Posted June 17, 2013 Filed for Ch 11. LOW is stalking horse bidder at $205 MM + assumption of trade payables. Why did the share price go up today? Won't shareholders get wiped out? ::) 205MM is quite a low bit. Its assets is 407M, and that is after D&A of the properties. The trade payables is only 47M, so LOW is definitely getting a deal here. Link to comment Share on other sites More sharing options...
fareastwarriors Posted June 17, 2013 Share Posted June 17, 2013 http://www.businessweek.com/articles/2013-06-17/lowes-buys-into-the-california-housing-rush#r=hpt-ls Lowe's Buys Into the California Housing Rush Link to comment Share on other sites More sharing options...
constructive Posted June 17, 2013 Share Posted June 17, 2013 What does this mean for the preferred shares? Unless a higher bid comes in, preferred and common shares will probably be determined worthless and canceled in the course of bankruptcy. Link to comment Share on other sites More sharing options...
CorpRaider Posted June 17, 2013 Share Posted June 17, 2013 Filed for Ch 11. LOW is stalking horse bidder at $205 MM + assumption of trade payables. Why did the share price go up today? Won't shareholders get wiped out? ::) 205MM is quite a low bit. Its assets is 407M, and that is after D&A of the properties. The trade payables is only 47M, so LOW is definitely getting a deal here. Beats me, there's a post here: http://www.stockspinoffs.com/2013/06/17/orchard-supply-taken-out-to-the-woodshed-will-sears-holdings-reap-what-it-sowed/ speculating about a potential action against SHLD, but I am not experienced enough in that arena to judge the viability of such an action. I think the stalking horse bid is for 60 of the stores and assumption of all trade payables; so they would have approx 23 other stores left after closing 8 underperforming stores. Could be speculation of a higher bid? Link to comment Share on other sites More sharing options...
compoundinglife Posted June 19, 2013 Share Posted June 19, 2013 Management expects nothing left for equity holders. http://finance.yahoo.com/news/orchard-supply-hardware-statement-regarding-123500698.html Link to comment Share on other sites More sharing options...
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