SHLDQ - Sears Holdings Corp

[Luke 532]

My assumption is that Sears accountants can consider more relevant information about the value of specific properties than tax assessors can.

 

And I would further assume that Berkowitz's team can do better than the tax assessors, and Lampert's team (or Lampert himself!) can as well.  I would imagine those closest to Lampert and Berkowitz that review the value of the real estate are more educated and higher paid than your average tax assessor.  I could be completely wrong about this, but I imagine Berkowitz and Lampert hire best-of-breed.

 

EDIT: just Google'd (is that a word?) it...

http://www.bls.gov/ooh/business-and-financial/appraisers-and-assessors-of-real-estate.htm

Quick Facts: Appraisers and Assessors of Real Estate

2010 Median Pay         $48,500 per year

Entry-Level Education High school diploma or equivalent

On-the-job Training         Apprenticeship

Number of Jobs, 2010 77,800

 

I doubt Lampert or Berkowitz have any key personnel valuing real estate with the education level of "High school diploma or equivalent."  Yes, that's entry-level, but still interesting.

 

By the way, I am not trying to offend any tax assessors out there... you are likely smarter than me.  I am just trying to figure out if those on Berkowitz's and Lampert's team might have a better feel for real values of real estate within the SHLD portfolio than a public tax assessor... that's all.

[ERICOPOLY]

imagine it as a much worse organized, yet more expensive Walmart...

 

Guys, as there are no Kmart where I live (Quebec province),  I cannot really get what it is...what kind of store is a Kmart? Do you think they are worth something or will Lampert close most, if not all, the Kmart? Or are they better located than Sears? Does it have any value as a brand? Thanks in advance!

 

The Kmart in Goleta is pretty vacant of customers despite not even having a Target nor a Walmart to compete with.

 

Now that is pathetic!  The nearest Walmart/Target stores are like 45 miles away in Ventura.

 

The Goleta KMart also serves the neighboring city of Santa Barbara.

 

So no, to believe that Walmat and Target are killing them would be delusional.

 

 

I heard Santa Barbara is a rich city, no?

If there are no Walmarts there to compete with Kmart, at the minimum, SHLD should close the store and rent it or sell it to Walmart. :)

 

How would you evaluate the value of this Kmart property? It sounds like it is in a good location.

 

There are plenty of struggling people here that clean houses, wash dishes, mow lawns for a living.  The store is just hideous inside.  It is located across the street from Home Depot and Costco, which are both inviting and thriving.

 

Goleta's Kmart -- if it can't thrive without Target and Walmart, then what possible hope is there for the rest of their stores?

 

Is the Goleta Kmart the one about a mile from UCSB?  If so, can't believe it's still there.  I remember back in the day it was the only place in the area to buy things like toiletries and such.

 

Very close to Isla Vista:

 

6865 Hollister Ave

Goleta, CA 93117

[Luke 532]

A picture I consider more beautiful than any Rembrandt I've ever seen.

 

Eli Wexler, is that you?

 

Hah!  I don't think someone of Jewish ethnicity like Lampert would choose a handle that references a New Testament verse.  But on second thought that would be a good cover and nobody would suspect him!

[FCharlie]

Regarding Lampert & Berkowitz and their confidence in their investment.

 

 

I met Lampert at the annual meeting  years ago. This was shortly after the financial crisis when nearly every company on earth suspended share repurchases. I thanked Mr. Lampert for continuing to buy while the sky was falling. He had the simplest answer of all. "We wish we would have have bought more."  Since then, he has indeed bought more. More with company cash and more with personal cash.

 

Regarding Berkowitz. Look at his 13F's.  The obvious pattern is one of accumulation of SHLD shares. His new 13F will be out this week.

 

 

Of course it is possible these two guys are wrong in their assessment of SHLD.  However, given the fact that Berkowitz makes it a point to "try and kill" his positions on a continuing basis and given that Lampert as an insider keeps accumulating, I'm betting that these guys are correct and the rest of Wall Street is either too impatient or simply wrong.

 

 

 

 

[BTShine]

imagine it as a much worse organized, yet more expensive Walmart...

 

Guys, as there are no Kmart where I live (Quebec province),  I cannot really get what it is...what kind of store is a Kmart? Do you think they are worth something or will Lampert close most, if not all, the Kmart? Or are they better located than Sears? Does it have any value as a brand? Thanks in advance!

 

The Kmart in Goleta is pretty vacant of customers despite not even having a Target nor a Walmart to compete with.

 

Now that is pathetic!  The nearest Walmart/Target stores are like 45 miles away in Ventura.

 

The Goleta KMart also serves the neighboring city of Santa Barbara.

 

So no, to believe that Walmat and Target are killing them would be delusional.

 

 

I heard Santa Barbara is a rich city, no?

If there are no Walmarts there to compete with Kmart, at the minimum, SHLD should close the store and rent it or sell it to Walmart. :)

 

How would you evaluate the value of this Kmart property? It sounds like it is in a good location.

 

There are plenty of struggling people here that clean houses, wash dishes, mow lawns for a living.  The store is just hideous inside.  It is located across the street from Home Depot and Costco, which are both inviting and thriving.

 

Goleta's Kmart -- if it can't thrive without Target and Walmart, then what possible hope is there for the rest of their stores?

 

Is the Goleta Kmart the one about a mile from UCSB?  If so, can't believe it's still there.  I remember back in the day it was the only place in the area to buy things like toiletries and such.

 

Very close to Isla Vista:

 

6865 Hollister Ave

Goleta, CA 93117

 

 

That's likely an example of a valuable property.  The Goleta store is listed on shcrealty.com as an 'opportunity' within an operating store.  That tells me that SHLD is willing to sell, or sublease, this store at the right price. 

[Luke 532]

I'm betting that these guys are correct and the rest of Wall Street is either too impatient or simply wrong.

 

I asked one hedge fund manager that I know (he's small, mostly unknown) why he didn't have a larger position in SHLD.  He said "I think my other ideas will come to fruition quicker than SHLD will."  Basically, he likes SHLD and thinks it can do very well, but has admitted that the timing can be a detriment.  Wall Street likely looks at the timing aspect and just doesn't have the patience for it.  So, I think there are people out there that see the value but just can't wait for it to materialize.  That is understandable for people managing money as they need to report results on a regular basis and that might not afford them the ability to hold something another 5 years.

 

What I'm trying to say is that there may be a good number of people that have their checkbooks ready but due to the timing aspect of not knowing when this thing will really start to take-off, they haven't signed the check yet.  Guys who were previously involved have done the homework and SHLD might still be on their radar (Whitman, Ackman, etc.).  And let's not forget that Francis Chou has a nice position in SHLD (last time I checked he did, don't think he has sold out).  And you've got blood-thirsty guys like Icahn who always love a good short squeeze... although it's doubtful he could build a significant stake given the low float.

[ERICOPOLY]

imagine it as a much worse organized, yet more expensive Walmart...

 

Guys, as there are no Kmart where I live (Quebec province),  I cannot really get what it is...what kind of store is a Kmart? Do you think they are worth something or will Lampert close most, if not all, the Kmart? Or are they better located than Sears? Does it have any value as a brand? Thanks in advance!

 

The Kmart in Goleta is pretty vacant of customers despite not even having a Target nor a Walmart to compete with.

 

Now that is pathetic!  The nearest Walmart/Target stores are like 45 miles away in Ventura.

 

The Goleta KMart also serves the neighboring city of Santa Barbara.

 

So no, to believe that Walmat and Target are killing them would be delusional.

 

 

I heard Santa Barbara is a rich city, no?

If there are no Walmarts there to compete with Kmart, at the minimum, SHLD should close the store and rent it or sell it to Walmart. :)

 

How would you evaluate the value of this Kmart property? It sounds like it is in a good location.

 

There are plenty of struggling people here that clean houses, wash dishes, mow lawns for a living.  The store is just hideous inside.  It is located across the street from Home Depot and Costco, which are both inviting and thriving.

 

Goleta's Kmart -- if it can't thrive without Target and Walmart, then what possible hope is there for the rest of their stores?

 

Is the Goleta Kmart the one about a mile from UCSB?  If so, can't believe it's still there.  I remember back in the day it was the only place in the area to buy things like toiletries and such.

 

Very close to Isla Vista:

 

6865 Hollister Ave

Goleta, CA 93117

 

 

That's likely an example of a valuable property.  The Goleta store is listed on shcrealty.com as an 'opportunity' within an operating store.  That tells me that SHLD is willing to sell, or sublease, this store at the right price.

 

 

It must be considerably undervalued by the tax assessor.

 

Those of you not familiar with California's tax nonsense should read about Proposition 13:

 

http://en.wikipedia.org/wiki/California_Proposition_13_(1978)

 

[FCharlie]

http://searsholdings.mediaroom.com/index.php?s=16310&item=137218

 

 

Sears offering $10 oil changes.  That's a nice incentive. Now everyone on this board can get an oil change while doing personal research into how terrible this company is at retail.

 

 

[BTShine]

imagine it as a much worse organized, yet more expensive Walmart...

 

Guys, as there are no Kmart where I live (Quebec province),  I cannot really get what it is...what kind of store is a Kmart? Do you think they are worth something or will Lampert close most, if not all, the Kmart? Or are they better located than Sears? Does it have any value as a brand? Thanks in advance!

 

The Kmart in Goleta is pretty vacant of customers despite not even having a Target nor a Walmart to compete with.

 

Now that is pathetic!  The nearest Walmart/Target stores are like 45 miles away in Ventura.

 

The Goleta KMart also serves the neighboring city of Santa Barbara.

 

So no, to believe that Walmat and Target are killing them would be delusional.

 

 

I heard Santa Barbara is a rich city, no?

If there are no Walmarts there to compete with Kmart, at the minimum, SHLD should close the store and rent it or sell it to Walmart. :)

 

How would you evaluate the value of this Kmart property? It sounds like it is in a good location.

 

There are plenty of struggling people here that clean houses, wash dishes, mow lawns for a living.  The store is just hideous inside.  It is located across the street from Home Depot and Costco, which are both inviting and thriving.

 

Goleta's Kmart -- if it can't thrive without Target and Walmart, then what possible hope is there for the rest of their stores?

 

Is the Goleta Kmart the one about a mile from UCSB?  If so, can't believe it's still there.  I remember back in the day it was the only place in the area to buy things like toiletries and such.

 

Very close to Isla Vista:

 

6865 Hollister Ave

Goleta, CA 93117

 

 

That's likely an example of a valuable property.  The Goleta store is listed on shcrealty.com as an 'opportunity' within an operating store.  That tells me that SHLD is willing to sell, or sublease, this store at the right price.

 

 

It must be considerably undervalued by the tax assessor.

 

Those of you not familiar with California's tax nonsense should read about Proposition 13:

 

http://en.wikipedia.org/wiki/California_Proposition_13_(1978)

 

 

According to the tax assessor's office, that parcel is valued at:

 

Land --  $11.1 Million

Building  $1.2 Million

 

Not sure if this link will work -- https://mytaxes.sbtaxes.org/PropTax/WebPages/PropertySearch.aspx?SearchParameterList=Secured-Address&SearchString=6865%20HOLLISTER%20AVE%20GOLETA%20CA%2093117&SearchStringDisplayed=6865%20HOLLISTER%20AVE%20GOLETA%20CA%2093117

 

[Kraven]

Very close to Isla Vista:

 

6865 Hollister Ave

Goleta, CA 93117

 

Yeah, that's it.  25+ years ago that was the only thing around other than a grocery store.  The only other thing I remember about that K Mart is that a friend got arrested for shoplifting a CD there.  Ah, good days.

[ERICOPOLY]

imagine it as a much worse organized, yet more expensive Walmart...

 

Guys, as there are no Kmart where I live (Quebec province),  I cannot really get what it is...what kind of store is a Kmart? Do you think they are worth something or will Lampert close most, if not all, the Kmart? Or are they better located than Sears? Does it have any value as a brand? Thanks in advance!

 

The Kmart in Goleta is pretty vacant of customers despite not even having a Target nor a Walmart to compete with.

 

Now that is pathetic!  The nearest Walmart/Target stores are like 45 miles away in Ventura.

 

The Goleta KMart also serves the neighboring city of Santa Barbara.

 

So no, to believe that Walmat and Target are killing them would be delusional.

 

 

I heard Santa Barbara is a rich city, no?

If there are no Walmarts there to compete with Kmart, at the minimum, SHLD should close the store and rent it or sell it to Walmart. :)

 

How would you evaluate the value of this Kmart property? It sounds like it is in a good location.

 

There are plenty of struggling people here that clean houses, wash dishes, mow lawns for a living.  The store is just hideous inside.  It is located across the street from Home Depot and Costco, which are both inviting and thriving.

 

Goleta's Kmart -- if it can't thrive without Target and Walmart, then what possible hope is there for the rest of their stores?

 

Is the Goleta Kmart the one about a mile from UCSB?  If so, can't believe it's still there.  I remember back in the day it was the only place in the area to buy things like toiletries and such.

 

Very close to Isla Vista:

 

6865 Hollister Ave

Goleta, CA 93117

 

 

That's likely an example of a valuable property.  The Goleta store is listed on shcrealty.com as an 'opportunity' within an operating store.  That tells me that SHLD is willing to sell, or sublease, this store at the right price.

 

 

It must be considerably undervalued by the tax assessor.

 

Those of you not familiar with California's tax nonsense should read about Proposition 13:

 

http://en.wikipedia.org/wiki/California_Proposition_13_(1978)

 

 

According to the tax assessor's office, that parcel is valued at:

 

Land --  $11.1 Million

Building  $1.2 Million

 

Not sure if this link will work -- https://mytaxes.sbtaxes.org/PropTax/WebPages/PropertySearch.aspx?SearchParameterList=Secured-Address&SearchString=6865%20HOLLISTER%20AVE%20GOLETA%20CA%2093117&SearchStringDisplayed=6865%20HOLLISTER%20AVE%20GOLETA%20CA%2093117

 

It was valued at half as much a decade ago.  It must have changed ownership in order for that type of reassessment to happen.

[Matson125]

Is there anything noted that suggest SHLD owns this and not a tenant with a lease?

[muscleman]

Is there anything noted that suggest SHLD owns this and not a tenant with a lease?

 

This is listed on SHCrealty.com, and available for leasing. I don't know if this means if SHLD is the owner or just a tenant who can sublease. I guess you can call ShcRealty and ask them directly?

 

 

http://www.shcrealty.com/property-search.aspx

[wisdom]

All I have to say is that you guys are pushing up the price by continuing this thread.

 

I was hoping it would drop to low 30s so that I could build a full position.

 

Can we hold off on this discussion until I have a full position ;)

[mcliu]

All I have to say is that you guys are pushing up the price by continuing this thread.

 

I was hoping it would drop to low 30s so that I could build a full position.

 

Can we hold off on this discussion until I have a full position ;)

+1

[LowIQinvestor]

All I have to say is that you guys are pushing up the price by continuing this thread.

 

I was hoping it would drop to low 30s so that I could build a full position.

 

Can we hold off on this discussion until I have a full position ;)

 

You may get your chance at EOY ( tax loss selling pressure)...

[compoundinglife]

Does anyone know the current borrow rate / lending rate for SHLD? I hope you all have lending turned on in your margin accounts to take advantage of that.

 

And is anyone using options? If the lending rate is high enough, there may be arbitrage available from covered calls or protective puts.

 

Wow, went out of cell phone range for the weekend and had a lot of catching up to do on this thread. I am getting %2 currently for lending out my shares. You don't need a margin account to lend the shares. You can setup a linked lending account on a non-margin account.

[Luke 532]

Well,  Sears sold it's store in Calgary and booked a $32 million gain

Sears sold an auto center for a $35 million gain

Sears sold it's fashion center in California for a $21 million gain

Sears sold it's offices in Toronto for a $46 million gain

Sears sold a few Great Indoors stores for a $50 million gain

 

The profits from just these 5 properties alone accounts for more than 4% of the market cap for the entire company ($184M / $4.51B).

[Mephistopheles]

Does anyone know the current borrow rate / lending rate for SHLD? I hope you all have lending turned on in your margin accounts to take advantage of that.

 

And is anyone using options? If the lending rate is high enough, there may be arbitrage available from covered calls or protective puts.

 

Wow, went out of cell phone range for the weekend and had a lot of catching up to do on this thread. I am getting %2 currently for lending out my shares. You don't need a margin account to lend the shares. You can setup a linked lending account on a non-margin account.

 

Can you lend shares out through any brokerage? Or does it have to be a full service broker or something. Could def. use some extra income.

[compoundinglife]

Does anyone know the current borrow rate / lending rate for SHLD? I hope you all have lending turned on in your margin accounts to take advantage of that.

 

And is anyone using options? If the lending rate is high enough, there may be arbitrage available from covered calls or protective puts.

 

Wow, went out of cell phone range for the weekend and had a lot of catching up to do on this thread. I am getting %2 currently for lending out my shares. You don't need a margin account to lend the shares. You can setup a linked lending account on a non-margin account.

 

Can you lend shares out through any brokerage? Or does it have to be a full service broker or something. Could def. use some extra income.

 

I don't know the details but I am sure someone on the board could shed some light. The account I lent them in is w/Schwab. I have some SHLD in my accounts at other discount brokerages but I am assuming the # of shares in those accounts is not enough to make it worth their effort.

[ERICOPOLY]

Well,  Sears sold it's store in Calgary and booked a $32 million gain

Sears sold an auto center for a $35 million gain

Sears sold it's fashion center in California for a $21 million gain

Sears sold it's offices in Toronto for a $46 million gain

Sears sold a few Great Indoors stores for a $50 million gain

 

The profits from just these 5 properties alone accounts for more than 4% of the market cap for the entire company ($184M / $4.51B).

 

Aren't there expenses associated with these closures that are booked on a separate line item? 

[BTShine]

Well,  Sears sold it's store in Calgary and booked a $32 million gain

Sears sold an auto center for a $35 million gain

Sears sold it's fashion center in California for a $21 million gain

Sears sold it's offices in Toronto for a $46 million gain

Sears sold a few Great Indoors stores for a $50 million gain

 

The profits from just these 5 properties alone accounts for more than 4% of the market cap for the entire company ($184M / $4.51B).

 

Aren't there expenses associated with these closures that are booked on a separate line item? 

 

There are.  And, I believe these closing expenses are always covered by the inventory liquidation (with extra cash to spare). 

[Luke 532]

Well,  Sears sold it's store in Calgary and booked a $32 million gain

Sears sold an auto center for a $35 million gain

Sears sold it's fashion center in California for a $21 million gain

Sears sold it's offices in Toronto for a $46 million gain

Sears sold a few Great Indoors stores for a $50 million gain

 

The profits from just these 5 properties alone accounts for more than 4% of the market cap for the entire company ($184M / $4.51B).

 

Aren't there expenses associated with these closures that are booked on a separate line item? 

 

There are.  And, I believe these closing expenses are always covered by the inventory liquidation (with extra cash to spare).

 

Lampert in February 2013 letter to shareholders:

"...we are usually able to generate significant cash from the net inventory invested in the stores, as the net inventory proceeds typically exceed the severance and closing costs."

[T-bone1]

Looks like Eddie is selling some more AN:

 

http://wallstcheatsheet.com/stocks/autonation-part-owner-sells-223k-shares-and-4-insider-sales-to-note.html/?ref=YF

 

he/his funds still owns $1.5 billion worth of AN . .. you could buy a lot of SHLD with that . . .

 

[ERICOPOLY]

Well,  Sears sold it's store in Calgary and booked a $32 million gain

Sears sold an auto center for a $35 million gain

Sears sold it's fashion center in California for a $21 million gain

Sears sold it's offices in Toronto for a $46 million gain

Sears sold a few Great Indoors stores for a $50 million gain

 

The profits from just these 5 properties alone accounts for more than 4% of the market cap for the entire company ($184M / $4.51B).

 

Aren't there expenses associated with these closures that are booked on a separate line item? 

 

There are.  And, I believe these closing expenses are always covered by the inventory liquidation (with extra cash to spare).

 

I think we are misunderstanding each other.  Your point about inventory liquidation seems to answer a separate question -- I wasn't asking if their cash levels were being reduced by closing stores.

 

FCharlie talked about "gains".  I'm pointing out that there may be expenses related to, for example, severing employees that would take a big bite out of those gains.  So I'm trying to find out of FCharlie is counting those expenses when he figures out what the profits are on closing stores. 

 

He talked about gain on selling the stores -- not about the net gains on both closing and selling the stores.  I guess I'm wondering if the undervalued real estate is being swallowed up by costs of trying to sell it (which involve first closing the stores and laying off employees).