BTShine Posted February 13, 2014 Share Posted February 13, 2014 The CBOE 'board/committee' finds a value for the dividend. If they distribute $7.00 a share via special dividend, then option strikes are reduced by $7.00. For the spin-off, if one share of SHLD is allocated one share of 'new Lands' End', then all options now are contracts that include 100 shares of Lands' End and 100 shares of SHLD. Overall, I've found the system to be very fair. Link to comment Share on other sites More sharing options...
peridotcapital Posted February 13, 2014 Share Posted February 13, 2014 Does anyone know how large a potential return of capital, or spin-off, has to be for options' strike prices to get adjusted downwards? Specifically curious if you own the SHLD LEAPS expiring in Jan 2016, how do you know what will happens to the strike price after the spin offs? Would love to hear from anyone who owned the SHLD LEAPS before the SHOS and Orchard Supplies spin offs I did not own options for prior SHLD spin-offs, but I don't believe there is a minimum threshold. Any special dividend or spin-off should be adjusted accordingly. I know from holding shares of DO and selling leaps against them in the past that their 75-cent quarterly special dividends are treated that way, so that is obviously a very small adjustment. Link to comment Share on other sites More sharing options...
compoundinglife Posted February 13, 2014 Share Posted February 13, 2014 http://www.metascale.com/company/industry-news/195-metascale-introduces-hadoop-appliance-combining-complete-technical-capability-with-proven-expertise Metascale launches hadoop appliance. Link to comment Share on other sites More sharing options...
Luke 532 Posted February 14, 2014 Share Posted February 14, 2014 At this point, Baker Street & Force Capital can lay claim on 15.26 million shares through calls and have 2.5 million shares outright... interesting. https://docs.google.com/spreadsheet/pub?key=0ArX667iB-WCRdFZRMEl4T29EQnRmUTZueE1XY09nSWc&single=true&gid=0&output=html Add 579,427 to Murray Stahl/Horizon (up from 3,541,185 to 4,120,612) based on today's filing: http://www.sec.gov/Archives/edgar/data/1519418/000151941814000012/xslForm13F_X01/form13fhr-infoTable.xml Link to comment Share on other sites More sharing options...
alertmeipp Posted February 14, 2014 Author Share Posted February 14, 2014 At this point, Baker Street & Force Capital can lay claim on 15.26 million shares through calls and have 2.5 million shares outright... interesting. https://docs.google.com/spreadsheet/pub?key=0ArX667iB-WCRdFZRMEl4T29EQnRmUTZueE1XY09nSWc&single=true&gid=0&output=html Add 579,427 to Murray Stahl/Horizon (up from 3,541,185 to 4,120,612) based on today's filing: http://www.sec.gov/Archives/edgar/data/1519418/000151941814000012/xslForm13F_X01/form13fhr-infoTable.xml Now, the decision is when to sell... Link to comment Share on other sites More sharing options...
Luke 532 Posted February 14, 2014 Share Posted February 14, 2014 Now, the decision is when to sell... Maybe in 20 years? Link to comment Share on other sites More sharing options...
alertmeipp Posted February 14, 2014 Author Share Posted February 14, 2014 Now, the decision is when to sell... Maybe in 20 years? I like your mindset. Link to comment Share on other sites More sharing options...
wisdom Posted February 14, 2014 Share Posted February 14, 2014 http://dealbook.nytimes.com/2014/02/14/jos-a-bank-to-buy-parent-of-eddie-bauer-in-deal-worth-825-million/?_php=true&_type=blogs&partner=yahoofinance&_r=0 EB bought for $825mil Link to comment Share on other sites More sharing options...
ni-co Posted February 14, 2014 Share Posted February 14, 2014 http://dealbook.nytimes.com/2014/02/14/jos-a-bank-to-buy-parent-of-eddie-bauer-in-deal-worth-825-million/?_php=true&_type=blogs&partner=yahoofinance&_r=0 EB bought for $825mil The purchase price represents a multiple of approximately 1x 2013E revenue and 9.5x 2013E Adjusted EBITDA, including $25 million of potential pro forma synergies. http://globenewswire.com/news-release/2014/02/14/610446/10068459/en/Jos-A-Bank-Clothiers-to-Acquire-Leading-Lifestyle-Brand-Eddie-Bauer.html Based on LE FY2012 EBITDA of $107.6 m and sales of $1.58 bn that would value LE at $1-1.5 bn in EV. That would be $4.70-9.40 per share assuming a $500 m dividend to SHLD. Link to comment Share on other sites More sharing options...
peridotcapital Posted February 14, 2014 Share Posted February 14, 2014 http://dealbook.nytimes.com/2014/02/14/jos-a-bank-to-buy-parent-of-eddie-bauer-in-deal-worth-825-million/?_php=true&_type=blogs&partner=yahoofinance&_r=0 EB bought for $825mil Eddie should have called JOSB and offered them LE instead at a slight discount to this price, since they are very similar brands. Eddie Bauer has EBITDA of $62M so the EV/EBITDA multiple is actually 13.3x (the lower 9.5x figure is after synergies). LE will likely trade at half this valuation post-spin. Glad I'm not a JOSB shareholder... Link to comment Share on other sites More sharing options...
DCG Posted February 14, 2014 Share Posted February 14, 2014 I would not say that Eddie Bauer and Lands End are really comparable brands. I think Eddie Bauer's clothes are perceived as being higher quality than Lands End. I know there's not a good way to quantify this, and I'm not a fashion expert, but I think the value of the EB brand is quite a bit higher than Lands End. I buy a decent amount of clothes from EB. They make a lot of great products. I can't say I've ever found anything worth buying in LE. That said, I think LE could be more valuable on it's own than being part of of Sears. In my view, being part of Sears hurts the brand. I know LE has retail stores, but I view their clothes more as one of many crappy brands of clothes they sell at Sears. I've said this repeatedly, but I don't understand why Sears needs to be in the clothing and apparel business at all. I'd much rather see them focus on hardware & appliances (I'm on the fence about them continuing to sell electronics, as they can't compete with companies like Amazon and Best Buy in this area). Link to comment Share on other sites More sharing options...
Luke 532 Posted February 14, 2014 Share Posted February 14, 2014 JANA Partners (Rosenstein) dips his toes in the water with a new position in SHLD... 99,917 shares. http://www.sec.gov/Archives/edgar/data/1159159/000090266414000995/xslForm13F_X01/infotable.xml Link to comment Share on other sites More sharing options...
peridotcapital Posted February 14, 2014 Share Posted February 14, 2014 I would not say that Eddie Bauer and Lands End are really comparable brands. I think Eddie Bauer's clothes are perceived as being higher quality than Lands End. I know there's not a good way to quantify this, and I'm not a fashion expert, but I think the value of the EB brand is quite a bit higher than Lands End. I buy a decent amount of clothes from EB. They make a lot of great products. I can't say I've ever found anything worth buying in LE. I can't really speak to the quality comparison. I guess I just think they are very close in terms of both target demographic and price point. Regardless, from a stock market valuation perspective I think most mid-range apparel companies trade similarly, so the differences might be more evident to shoppers, as opposed to investors. The group trades around 6x EV/EBITDA so I am guessing that is about where LE will trade. Link to comment Share on other sites More sharing options...
constructive Posted February 14, 2014 Share Posted February 14, 2014 I would not say that Eddie Bauer and Lands End are really comparable brands. I think Eddie Bauer's clothes are perceived as being higher quality than Lands End. I know there's not a good way to quantify this, and I'm not a fashion expert, but I think the value of the EB brand is quite a bit higher than Lands End. I buy a decent amount of clothes from EB. They make a lot of great products. I can't say I've ever found anything worth buying in LE. I can't really speak to the quality comparison. I guess I just think they are very close in terms of both target demographic and price point. Regardless, from a stock market valuation perspective I think most mid-range apparel companies trade similarly, so the differences might be more evident to shoppers, as opposed to investors. The group trades around 6x EV/EBITDA so I am guessing that is about where LE will trade. I agree with DCG, it seems like Eddie Bauer skews a bit younger, wealthier, more male and more urban. But fashionability is only relevant as far as it translates into financial performance. EB is unprofitable and has been through 2 bankruptcies in the past 10 years. LE is consistently profitable (although declining). Link to comment Share on other sites More sharing options...
BTShine Posted February 14, 2014 Share Posted February 14, 2014 I'd rather own LE than EB. Better brand in my opinion. I'm not saying higher quality, just that I believe LE is a more stable brand. Better moat per se. Also, the EB multiples are for a buyout. Lands' End is unlikely to trade at those multiples. But, hopefully the market proves me wrong. Link to comment Share on other sites More sharing options...
alertmeipp Posted February 14, 2014 Author Share Posted February 14, 2014 wow, the short squeeze is short lived Link to comment Share on other sites More sharing options...
wisdom Posted February 14, 2014 Share Posted February 14, 2014 Baker street upto 9 million shares or 8.5% BSC LP (a) Amount beneficially owned: 9,000,000 Shares* (b) Percent of class: 8.5% (based upon 106,451,439 Shares outstanding, which is the total number of Shares outstanding as of November 15, 2013 as reported in the Issuer’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 21, 2013). Link to comment Share on other sites More sharing options...
bmichaud Posted February 14, 2014 Share Posted February 14, 2014 Actually down from 11MM... http://www.sec.gov/Archives/edgar/data/1310067/000092189513002424/sc13ga107950011_11272013.htm Link to comment Share on other sites More sharing options...
Luke 532 Posted February 14, 2014 Share Posted February 14, 2014 Actually down from 11MM... http://www.sec.gov/Archives/edgar/data/1310067/000092189513002424/sc13ga107950011_11272013.htm 2,550,000 common shares... up from 2,006,200 last quarter (increase of 27%) http://www.sec.gov/Archives/edgar/data/1488207/000092189514000317/xslForm13F_X01/infotable.xml Link to comment Share on other sites More sharing options...
Luke 532 Posted February 14, 2014 Share Posted February 14, 2014 Short (as of 1/31/2013): 15.298M Lampert/Berkowitz/Tisch: 79.597M Outstanding: 106.451M Float: 26.854M Others: Horizon/Chou/OldWest/BakerSt/Force/GoodHaven/Fine = ~9.886M Just food for thought, if you exclude those 9.886M from the float there are only 1.67M shares available for trading (obviously assumes none are being lent by any of the holders, which is not a conservative assumption at all). Link to comment Share on other sites More sharing options...
bmichaud Posted February 14, 2014 Share Posted February 14, 2014 Actually down from 11MM... http://www.sec.gov/Archives/edgar/data/1310067/000092189513002424/sc13ga107950011_11272013.htm 2,550,000 common shares... up from 2,006,200 last quarter (increase of 27%) http://www.sec.gov/Archives/edgar/data/1488207/000092189514000317/xslForm13F_X01/infotable.xml So how does this all get reported into the 9MM number? Is the 9MM net of the puts or something? Seems hard to believe Baker would have reduced... Link to comment Share on other sites More sharing options...
thecynic Posted February 14, 2014 Share Posted February 14, 2014 I'm looking at the Baker Street Capital Management, LLC 13F filings: From the last 13-F filed 2013-11 SEARS HLDGS CORP(Shares) $89,235M Number: 1,500,000 SEARS HLDGS CORP(Calls) $416,430M Number: 7,000,000 From today's filings: SEARS HLDGS CORP(shares) $125,052M Number: 2,550,000 SEARS HLDGS CORP(calls) $495,569M Number:10,105,400 SEARS HLDGS CORP(puts) $127,852M Number: 2,607,100 Looks like they added to their calls & shares but also bought some put protection. So the 9M number is net of the puts. Link to comment Share on other sites More sharing options...
adesigar Posted February 14, 2014 Share Posted February 14, 2014 Doesn't RBS Partners report on 13/14th of Feb too? I also had a question regarding Fairholme ownership of SHLD. With Fairholme over 20% don't they have to file a 13d now instead of a 13g? http://www.investopedia.com/ask/answers/09/schedule-13d.asp Also will a 13d give any extra information than a 13g? Link to comment Share on other sites More sharing options...
bmichaud Posted February 14, 2014 Share Posted February 14, 2014 Was just looking it over as well. Very confusing, but the puts explanation is the only thing that makes sense. The 13G/A from today says the "Date of Event" for the 9MM is 12/31/13. Very odd. Link to comment Share on other sites More sharing options...
BTShine Posted February 14, 2014 Share Posted February 14, 2014 How I understand it is: 13-F = Position as of the end of previous Quarter. In this case, it's the fund's position as of 12/31/13. 13-G = Position as of a few days ago for a significant holder (greater than 5%?). In the case of Fairholme, the filings below imply that Fairholme bought shares in January of 2014. http://www.sec.gov/Archives/edgar/data/1056831/000091957414001790/xslForm13F_X01/infotable.xml http://www.sec.gov/Archives/edgar/data/1056831/000091957414000659/d1450713_13g-a.htm Link to comment Share on other sites More sharing options...
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