SHLDQ - Sears Holdings Corp

[TeddyLampert]

maybe the land's end reflects short covering?

 

 

I can understand how short covering will drive the subsequent move in the share price but not the initial pricing... Not exactly sure what determines the price coming out of the gate

[Guest wellmont]

believe it's still supply demand in when issued so it very well could be short covering demand. this trading is far more likely to be institutional than retail. i tried to sell my shares short but tda wouldn't let me.

[gr33ngi4nt]

I have no experience with these interim securities so forgive me for my ignorance. Are we able to sell our our LE shares? I conservatively valued LE at about $20. I would be very happy to sell out at current levels - $32/$34.50.

[adesigar]

Id love to sell at this price too but I don't see any of these Shares in my account.

[TwoCitiesCapital]

Id love to sell at this price too but I don't see any of these Shares in my account.

 

Yea...if lands end priced at $8/SHLD and SHLD didn't drop today, I'm sitting very nicely on my 2016 $40.000 calls. I would want to sell them, but the calls havent really moved much at all today making me think there is a lot of confusion around the LESS spin-off

[BTShine]

Why would anyone buy SHLD shares today if it doesn't come with LE?  Am I missing something here?

 

 

[Guest wellmont]

I think it does come with LE. the when issued price of shld is what it will trade at without LE.

[alertmeipp]

I think you can sell SHLD now and buy back SHLDV @ 38... that would be similar to be selling LEDMV.

[krazeenyc]

if you want to sell your lands end stock.. it's quite simple. :D (seems alertmeipp beat me to the punch)

[alertmeipp]

I switched half to SHLDV. I wanted the RE not the retail.

[vikx01]

Does anyone have any idea of how the LEAPs (I'm long $60 Jan 2016 calls) be effected.

Shall the leaps receive new leaps of the two underlyings and if so, at what strikes and when.

I couldn't find this info anywhere incl. here http://www.theocc.com/webapps/infomemos

 

Would this info come out on shareholder of record date, which is 24th?

 

[thepupil]

I locked in $9.46 per share in exchange for giving up my right to Lands End. I sold SHLD for $47.96 and bought SHLDV for $38.5

 

I think that's a nice outcome: $1B of Equity value ($9.46*107MM SHLD shares) + $500MM to Sears Holdings in the exit divvy.

[BTShine]

Does anyone have any idea of how the LEAPs (I'm long $60 Jan 2016 calls) be effected.

Shall the leaps receive new leaps of the two underlyings and if so, at what strikes and when.

I couldn't find this info anywhere incl. here http://www.theocc.com/webapps/infomemos

 

Would this info come out on shareholder of record date, which is 24th?

 

If this works like the OSH spin-off, you will have the right to purchase 100 shares of SHLD post-spin and 30 shares of LE for every option contract you exercise.  At the $60 strike, this will cost you $6,000. 

 

[vikx01]

Thanks BTShine!

 

Any idea when do the options generally begin to trade after spinoffs?

[adesigar]

I think you can sell SHLD now and buy back SHLDV @ 38... that would be similar to be selling LEDMV.

 

Thanks for that idea. Locked in about $9.5 per share in my IRA. Still debating on whether to do the same in my normal account. But I hate paying Taxes.

[heth247]

I think you can sell SHLD now and buy back SHLDV @ 38... that would be similar to be selling LEDMV.

 

Total volume of SHLDV is about 10000 shares, am I seeing it correctly? It seems hard to do this on a large scale.

 

[heth247]

Hi,

 

My cash balance almost doubles when I sold SHLD and bought back SHLDV. Looks like my broker (scottrade) does not subtract my SHLDV purchase from my cash balance.

 

Do you guys see the same problem (I mean, sounds like a good problem to have. :-)

[jeffmori7]

I'm not sure to get any of this...I should receive LE shares and therefore, my SHLD will robably go down the value of the LE spinoff, right? Why are you doing all these transactions and what are your ***V ticker representing? I don't see any Land'End share in my broker account?

[adesigar]

I'm not sure to get any of this...I should receive LE shares and therefore, my SHLD will robably go down the value of the LE spinoff, right? Why are you doing all these transactions and what are your ***V ticker representing? I don't see any Land'End share in my broker account?

 

Yes SHLD will go down by the value of the spinoff. But the when issued shares are already trading.  The Current SHLD is SHLDV+LEDMV. The SHLDV is SHLD excluding LE and the LEDMV is only LE.

[moody202]

I'm not sure to get any of this...I should receive LE shares and therefore, my SHLD will robably go down the value of the LE spinoff, right? Why are you doing all these transactions and what are your ***V ticker representing? I don't see any Land'End share in my broker account?

 

Exactly....why are you all doing this trading? Don't like to own LE shares?

[thepupil]

Jeff, when companies split like this, you receive "when issued" shares of each successor company that then convert into "regular way" shares. If you hold your SHLD shares that's what you will get. You aren't seeing them in your account because we have not reached the distribution date yet, the when issued market happens before the normal shares come to you.

 

http://www.investopedia.com/terms/w/wi.asp

 

For example right now there are 3 tickers trading for the sears umbrella : SHLD (what everyone owned yesterday) SHLDV (Sears Holdings when issued, Sears without Lands end), and LEDMV (Lands End when issued).

 

It is a method of pricing spinoffs and to allocate value between the components through a market based process.

 

SHLD = SHLDV + LEDMV, Those who are selling SHLD and buying SHLDV are saying "I'm a seller of my right to recieve Lands End in the future because I think it's a touch rich".

 

I personally don't want to own Land's End at a $1.5B EV and $1B equity value. those who do, can hold on to SHLD and await to receive their shares.

 

[heth247]

I'm not sure to get any of this...I should receive LE shares and therefore, my SHLD will robably go down the value of the LE spinoff, right? Why are you doing all these transactions and what are your ***V ticker representing? I don't see any Land'End share in my broker account?

 

Exactly....why are you all doing this trading? Don't like to own LE shares?

 

Because the current SHLDV price is implying a 1.5B EV of LE, pretty high based on its current earning.

 

If SHLDV is mispriced (due to people forgot to factor in the $500MM received from LE), its value may go higher than $38.50 after spinoff.

[heth247]

Thepupile, adesigar,

 

do you see your total cash balance goes up  a lot after you exchange SHLD with SHLDV?

[bobp]

Your when issued trade in shldv doesn't settle until it goes "regular way" and shld trades without the LE attached. So it doesn't show on your cash balance. I think if you tried to buy a million they wouldn't let you though, unless of course you have 38 million in your account. Maybe you should try it see what happens!  ;)

 

Hi,

 

My cash balance almost doubles when I sold SHLD and bought back SHLDV. Looks like my broker (scottrade) does not subtract my SHLDV purchase from my cash balance.

 

Do you guys see the same problem (I mean, sounds like a good problem to have. :-)

[heth247]

Your when issued trade in shldv doesn't settle until it goes "regular way" and shld trades without the LE attached. So it doesn't show on your cash balance. I think if you tried to buy a million they wouldn't let you though, unless of course you have 38 million in your account. Maybe you should try it see what happens!  ;)

 

That's what I suspect, just want to confirm other people having the same situation...