alertmeipp Posted January 21, 2014 Author Share Posted January 21, 2014 hmmm, actionable observations? Link to comment Share on other sites More sharing options...
BTShine Posted January 21, 2014 Share Posted January 21, 2014 Sears closing it's State Street location. I always thought they owned this location, but now I'm second guessing that. Will try to search the Cook County property records. http://www.nbcchicago.com/blogs/inc-well/Report-Sears-Closing-State-Street-Store-241369591.html#comments Link to comment Share on other sites More sharing options...
peridotcapital Posted January 22, 2014 Share Posted January 22, 2014 Sears closing it's State Street location. I always thought they owned this location, but now I'm second guessing that. Will try to search the Cook County property records. http://www.nbcchicago.com/blogs/inc-well/Report-Sears-Closing-State-Street-Store-241369591.html#comments That location would be a great redevelopment site if they owned it... not so sure you should be second-guessing... Link to comment Share on other sites More sharing options...
peridotcapital Posted January 22, 2014 Share Posted January 22, 2014 Spoke too soon... from 2012: http://www.chicagobusiness.com/realestate/20120627/CRED03/120629823/sears-boosts-office-space-on-state-street# Link to comment Share on other sites More sharing options...
Luke 532 Posted January 22, 2014 Share Posted January 22, 2014 Sears closing it's State Street location. I always thought they owned this location, but now I'm second guessing that. Will try to search the Cook County property records. http://www.nbcchicago.com/blogs/inc-well/Report-Sears-Closing-State-Street-Store-241369591.html#comments That location would be a great redevelopment site if they owned it... not so sure you should be second-guessing... Interesting... Sears Holdings Inc. said it plans to continue its presence on the 4th floor of the building, where more than 150 employees work in their online and information technology business units Link to comment Share on other sites More sharing options...
BTShine Posted January 22, 2014 Share Posted January 22, 2014 Looks like the building is owned by NY investor Joseph Chetrit. http://www.chicagobusiness.com/article/20140121/NEWS07/140129930/sears-closing-flagship-store-in-chicagos-loop Link to comment Share on other sites More sharing options...
alertmeipp Posted January 22, 2014 Author Share Posted January 22, 2014 New Lampert post today. He sure is being more talkative in the past month. http://blog.searsholdings.com/eddie-lampert/are-the-new-ideas-about-how-retail-is-changing-really-new/ Are the new ideas about how retail is changing really new? I find it interesting all in the span of a month or so that he has created his personal blog, the SHC blog, did a press release on King of Prussia (hasn't done press releases like that before) and included a link to SHCRealty in that release (don't think they've linked to it before), etc. He is definitely making major changes in terms of holding his cards close to the chest. Perhaps all the table cards are down, he likes what he saw on the flop, the turn and the river, and he's ready to show that he has a nuts straight when nobody expected it? Wow, this guy is full of it. He talked like he is some sort of retail guru. Shop online and pick up in stores is innovation? OMG. Link to comment Share on other sites More sharing options...
Buckeye Posted January 22, 2014 Share Posted January 22, 2014 Wow, this guy is full of it. He talked like he is some sort of retail guru. Shop online and pick up in stores is innovation? OMG. Ouch, that's a rather harsh criticism. I think it's nice to finally get to hear his thoughts on the company beyond the yearly annual letter. I read the post as more of an admission of what they thought was innovative years ago is now industry standard. Link to comment Share on other sites More sharing options...
alertmeipp Posted January 22, 2014 Author Share Posted January 22, 2014 Wow, this guy is full of it. He talked like he is some sort of retail guru. Shop online and pick up in stores is innovation? OMG. Ouch, that's a rather harsh criticism. I think it's nice to finally get to hear his thoughts on the company beyond the yearly annual letter. I read the post as more of an admission of what they thought was innovative years ago is now industry standard. Ok, maybe a bit too much. But I think the numbers so far does not support his strategy is better than others. It actually is the other way around. Link to comment Share on other sites More sharing options...
adesigar Posted January 22, 2014 Share Posted January 22, 2014 New Lampert post today. He sure is being more talkative in the past month. http://blog.searsholdings.com/eddie-lampert/are-the-new-ideas-about-how-retail-is-changing-really-new/ Are the new ideas about how retail is changing really new? I find it interesting all in the span of a month or so that he has created his personal blog, the SHC blog, did a press release on King of Prussia (hasn't done press releases like that before) and included a link to SHCRealty in that release (don't think they've linked to it before), etc. He is definitely making major changes in terms of holding his cards close to the chest. Perhaps all the table cards are down, he likes what he saw on the flop, the turn and the river, and he's ready to show that he has a nuts straight when nobody expected it? Wow, this guy is full of it. He talked like he is some sort of retail guru. Shop online and pick up in stores is innovation? OMG. Actually he is kind of correct. SHLD was doing shop online and pick up in store before most other brick and mortar. Article from 2007. http://www.nytimes.com/2007/09/24/technology/24ecom.html SHLD was among the first to let someone else pick up for you and were also among the first for sameday pickup if the item was already in stores. If I recall correctly and I might be wrong but these 2 features were introduced in 2009/2010. http://searsholdings.mediaroom.com/index.php?s=16310&item=30608 http://www.internetretailer.com/2010/09/24/best-buy-bolsters-its-buy-online-pickup-store-offering Best Buy also has taken a page from Sears by allowing consumers to designate someone else to pick it up, as long as the consumer shows a government-issued photo ID and the order number. http://www.examiner.com/article/walmart-starts-pick-up-today-ship-to-store-service The "Pick Up Today" program isn't revolutionary. Sears, LL Bean and several other major merchants already have similar offerings. Link to comment Share on other sites More sharing options...
alertmeipp Posted January 22, 2014 Author Share Posted January 22, 2014 Maybe it's just be but I expect more from the word "innovation". :) Link to comment Share on other sites More sharing options...
Spekulatius Posted January 22, 2014 Share Posted January 22, 2014 hmmm, actionable observations? buy CBL maybe. The stock is quite cheap, at <9x FFO. Link to comment Share on other sites More sharing options...
Luke 532 Posted January 22, 2014 Share Posted January 22, 2014 http://searsholdings.mediaroom.com/index.php?s=16310&item=137264 Sears Holdings To Hire 6,500 Veterans And Military Spouses In 2014 Something must be working behind the scenes if he's laying off retail store employees in droves, keeping IT/tech staff (from Chicago closing announced yesterday), and planning to hire thousands (presumably for tech/IT, real estate, etc.). Link to comment Share on other sites More sharing options...
bmichaud Posted January 22, 2014 Share Posted January 22, 2014 http://www.cnbc.com/id/101354474 Real estate in general has been a highly valuable asset through history, somehow morphing its usefulness into various forms over time. I wonder if SHLD isn't sitting on a potential treasure trove.... Link to comment Share on other sites More sharing options...
Luke 532 Posted January 22, 2014 Share Posted January 22, 2014 http://www.cnbc.com/id/101354474 Real estate in general has been a highly valuable asset through history, somehow morphing its usefulness into various forms over time. I wonder if SHLD isn't sitting on a potential treasure trove.... I'm sure this isn't lost on Eddie. That's why an investor needs to be patient and not tell him to "STFU". Link to comment Share on other sites More sharing options...
Evolveus Posted January 22, 2014 Share Posted January 22, 2014 When ever you go to the SHC Realty page and do a broa search for leasing or purchase opportunities for closed store & leasing within operating stores, the site returns over 3,000 hits. This includes Sears, SAC, Vacant land, and KMart. I'd think some variant of the pareto 80/20 rule applies to the value of these, but I guess I was a bit surprised to see over 3,000+ options. http://www.shcrealty.com/operating-store-opportunities.aspx Link to comment Share on other sites More sharing options...
bmichaud Posted January 22, 2014 Share Posted January 22, 2014 http://www.cnbc.com/id/101354474 Real estate in general has been a highly valuable asset through history, somehow morphing its usefulness into various forms over time. I wonder if SHLD isn't sitting on a potential treasure trove.... I'm sure this isn't lost on Eddie. That's why an investor needs to be patient and not tell him to "STFU". His blog posts are absurd. How happy would Buffett have been back when he bought Coke during the "New Coke" debacle if the CEO was out blogging about the need to innovate and move Coke in a new direction while that direction is clearly failing? How about blogging about how much he is actually spending on SWY and how he measures its "success" in the face of ski-slope SSS declines? How about blogging about what the SSS picture looks like for the "core" properties versus the properties eligible for closing? How about blogging about why the KCD brands continue to reside virtually solely within the SHLD system, losing share all the while, and not spun out into their own entity to grow via other means? How about blogging about why he is spinning out Lands End, a cash flow generating business, while trying to "fund a transformation"? Is he going to load it up with debt to just sink more cash into SWY, thus destroying the Lands End value? Or is there another plan at work where he will preserve the value of Lands End outside of the SHLD incinerator but wind down Retail more quickly? I have no idea....because he is blogging about how SHLD's "innovation" is more "innovative" than other giant tech companies. He has NOTHING to gain by keeping the stock price down. Ya sure if you are buying back stock hand over fist, then be as vague as possible to keep the stock depressed....but last I checked, there is no buyback program. What does he have to gain by being so aloof with his retail "plan"? Why not break the company up, disclose a highly detailed plan, and if the market likes it and fairly values your stock, use your stock as currency to grow the SHLD REIT embedded within this mess? I have no idea, because again, he is blogging about nothing.... Link to comment Share on other sites More sharing options...
Luke 532 Posted January 22, 2014 Share Posted January 22, 2014 http://www.cnbc.com/id/101354474 Real estate in general has been a highly valuable asset through history, somehow morphing its usefulness into various forms over time. I wonder if SHLD isn't sitting on a potential treasure trove.... I'm sure this isn't lost on Eddie. That's why an investor needs to be patient and not tell him to "STFU". His blog posts are absurd. How happy would Buffett have been back when he bought Coke during the "New Coke" debacle if the CEO was out blogging about the need to innovate and move Coke in a new direction while that direction is clearly failing? How about blogging about how much he is actually spending on SWY and how he measures its "success" in the face of ski-slope SSS declines? How about blogging about what the SSS picture looks like for the "core" properties versus the properties eligible for closing? How about blogging about why the KCD brands continue to reside virtually solely within the SHLD system, losing share all the while, and not spun out into their own entity to grow via other means? How about blogging about why he is spinning out Lands End, a cash flow generating business, while trying to "fund a transformation"? Is he going to load it up with debt to just sink more cash into SWY, thus destroying the Lands End value? Or is there another plan at work where he will preserve the value of Lands End outside of the SHLD incinerator but wind down Retail more quickly? I have no idea....because he is blogging about how SHLD's "innovation" is more "innovative" than other giant tech companies. He has NOTHING to gain by keeping the stock price down. Ya sure if you are buying back stock hand over fist, then be as vague as possible to keep the stock depressed....but last I checked, there is no buyback program. What does he have to gain by being so aloof with his retail "plan"? Why not break the company up, disclose a highly detailed plan, and if the market likes it and fairly values your stock, use your stock as currency to grow the SHLD REIT embedded within this mess? I have no idea, because again, he is blogging about nothing.... Probably because not being transparent has worked well for him in the past. Look, I'd love to have more insight from him on all the things you've listed, but I also realize there is probably a very good reason he's not offering up such information. I trust his judgement on what to reveal/not reveal at this time. Link to comment Share on other sites More sharing options...
bmichaud Posted January 22, 2014 Share Posted January 22, 2014 I trust him too on the real estate side. He has not proven himself whatsoever on the retail side. Were he truly "innovative" he would have been diversifying out of retail long ago instead of doubling down. Perhaps harsh, but my overall point is just shut up with the blog crap and get back to unlocking value behind the scenes. The whole thing just looks so childish and petty. Link to comment Share on other sites More sharing options...
JRH Posted January 22, 2014 Share Posted January 22, 2014 Probably because not being transparent has worked well for him in the past. Look, I'd love to have more insight from him on all the things you've listed, but I also realize there is probably a very good reason he's not offering up such information. I trust his judgement on what to reveal/not reveal at this time. The thing I couldn't stand in that last blog post was his squawking about how Sears anticipated changes in the retail landscape long before others. Let's assume for a second that's the case... - How effectively did they execute on them? - As an extension, how would Eddie judge one of his managers for having "anticipated" some operational reality and yet completely failed to capitalize on it? Would he be judged on the foresight or on the ineffective execution? I think the answer is obvious. Link to comment Share on other sites More sharing options...
T-bone1 Posted January 22, 2014 Share Posted January 22, 2014 http://www.cnbc.com/id/101354474 Real estate in general has been a highly valuable asset through history, somehow morphing its usefulness into various forms over time. I wonder if SHLD isn't sitting on a potential treasure trove.... I'm sure this isn't lost on Eddie. That's why an investor needs to be patient and not tell him to "STFU". His blog posts are absurd. How happy would Buffett have been back when he bought Coke during the "New Coke" debacle if the CEO was out blogging about the need to innovate and move Coke in a new direction while that direction is clearly failing? How about blogging about how much he is actually spending on SWY and how he measures its "success" in the face of ski-slope SSS declines? How about blogging about what the SSS picture looks like for the "core" properties versus the properties eligible for closing? How about blogging about why the KCD brands continue to reside virtually solely within the SHLD system, losing share all the while, and not spun out into their own entity to grow via other means? How about blogging about why he is spinning out Lands End, a cash flow generating business, while trying to "fund a transformation"? Is he going to load it up with debt to just sink more cash into SWY, thus destroying the Lands End value? Or is there another plan at work where he will preserve the value of Lands End outside of the SHLD incinerator but wind down Retail more quickly? I have no idea....because he is blogging about how SHLD's "innovation" is more "innovative" than other giant tech companies. He has NOTHING to gain by keeping the stock price down. Ya sure if you are buying back stock hand over fist, then be as vague as possible to keep the stock depressed....but last I checked, there is no buyback program. What does he have to gain by being so aloof with his retail "plan"? Why not break the company up, disclose a highly detailed plan, and if the market likes it and fairly values your stock, use your stock as currency to grow the SHLD REIT embedded within this mess? I have no idea, because again, he is blogging about nothing.... If you look at Eddy's personal sales of other securities, he likely has a LOT of cash on hand. I wouldn't be surprised if he makes a large purchase, either in the open market when he is not in a black out period, or directly from redeeming ESL LPs (if there are more to redeem). Unless he is planning an equity offering, I really think he could care less if the stock price is depressed. In fact, even if he isn't a purchaser in the near term, a low stock price provides him optionality for buybacks and purchases . . . and I believe he is a big fan of optionality. All of this is pure speculation on my part, but I wouldn't be shocked to see Eddie personally own a larger chunk of SHLD by the end of Q1 Link to comment Share on other sites More sharing options...
Luke 532 Posted January 22, 2014 Share Posted January 22, 2014 When JCP & Sears act as REITs http://video.cnbc.com/gallery/?video=3000237992 I loathe CNBC but that's 2 SHLD-related videos today. By the way, thanks to bmichaud for posting the one earlier... I missed it as I avoid circuses like CNBC unless my news alert picks up on something. Link to comment Share on other sites More sharing options...
bmichaud Posted January 22, 2014 Share Posted January 22, 2014 http://www.cnbc.com/id/101354474 Real estate in general has been a highly valuable asset through history, somehow morphing its usefulness into various forms over time. I wonder if SHLD isn't sitting on a potential treasure trove.... I'm sure this isn't lost on Eddie. That's why an investor needs to be patient and not tell him to "STFU". His blog posts are absurd. How happy would Buffett have been back when he bought Coke during the "New Coke" debacle if the CEO was out blogging about the need to innovate and move Coke in a new direction while that direction is clearly failing? How about blogging about how much he is actually spending on SWY and how he measures its "success" in the face of ski-slope SSS declines? How about blogging about what the SSS picture looks like for the "core" properties versus the properties eligible for closing? How about blogging about why the KCD brands continue to reside virtually solely within the SHLD system, losing share all the while, and not spun out into their own entity to grow via other means? How about blogging about why he is spinning out Lands End, a cash flow generating business, while trying to "fund a transformation"? Is he going to load it up with debt to just sink more cash into SWY, thus destroying the Lands End value? Or is there another plan at work where he will preserve the value of Lands End outside of the SHLD incinerator but wind down Retail more quickly? I have no idea....because he is blogging about how SHLD's "innovation" is more "innovative" than other giant tech companies. He has NOTHING to gain by keeping the stock price down. Ya sure if you are buying back stock hand over fist, then be as vague as possible to keep the stock depressed....but last I checked, there is no buyback program. What does he have to gain by being so aloof with his retail "plan"? Why not break the company up, disclose a highly detailed plan, and if the market likes it and fairly values your stock, use your stock as currency to grow the SHLD REIT embedded within this mess? I have no idea, because again, he is blogging about nothing.... If you look at Eddy's personal sales of other securities, he likely has a LOT of cash on hand. I wouldn't be surprised if he makes a large purchase, either in the open market when he is not in a black out period, or directly from redeeming ESL LPs (if there are more to redeem). Unless he is planning an equity offering, I really think he could care less if the stock price is depressed. In fact, even if he isn't a purchaser in the near term, a low stock price provides him optionality for buybacks and purchases . . . and I believe he is a big fan of optionality. All of this is pure speculation on my part, but I wouldn't be shocked to see Eddie personally own a larger chunk of SHLD by the end of Q1 Would love to see this. Link to comment Share on other sites More sharing options...
ValueBuff Posted January 22, 2014 Share Posted January 22, 2014 Just some envelope thoughts as SHLD is dirt cheap. Others have done way more analysis, but i am a simpleton Current price is 38.50$ Lands end is expected at 10-12$ spin out. Seritage @ 18 mill sq. ft at $50/sq. ft. (GGP is at 150 I believe, large margin) is $900mill or about $9 per share Sears Canada - $6 approx That means approx. $12.50 per share for the balance of Real Estate , Kenmore, Craftsman, Diehard, SAC, SYW (if it has value), e-sears (if you will), minus pension Since debt is covered by inventory and receivables according to the prospectus. Is this too simple? Link to comment Share on other sites More sharing options...
vinod1 Posted January 22, 2014 Share Posted January 22, 2014 His blog posts are absurd. How happy would Buffett have been back when he bought Coke during the "New Coke" debacle if the CEO was out blogging about the need to innovate and move Coke in a new direction while that direction is clearly failing? How about blogging about how much he is actually spending on SWY and how he measures its "success" in the face of ski-slope SSS declines? How about blogging about what the SSS picture looks like for the "core" properties versus the properties eligible for closing? How about blogging about why the KCD brands continue to reside virtually solely within the SHLD system, losing share all the while, and not spun out into their own entity to grow via other means? How about blogging about why he is spinning out Lands End, a cash flow generating business, while trying to "fund a transformation"? Is he going to load it up with debt to just sink more cash into SWY, thus destroying the Lands End value? Or is there another plan at work where he will preserve the value of Lands End outside of the SHLD incinerator but wind down Retail more quickly? I have no idea....because he is blogging about how SHLD's "innovation" is more "innovative" than other giant tech companies. He has NOTHING to gain by keeping the stock price down. Ya sure if you are buying back stock hand over fist, then be as vague as possible to keep the stock depressed....but last I checked, there is no buyback program. What does he have to gain by being so aloof with his retail "plan"? Why not break the company up, disclose a highly detailed plan, and if the market likes it and fairly values your stock, use your stock as currency to grow the SHLD REIT embedded within this mess? I have no idea, because again, he is blogging about nothing.... +1 Link to comment Share on other sites More sharing options...
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