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SHLDQ - Sears Holdings Corp


alertmeipp

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I still don't see LE shares in my account. Should I expect to see them tomorrow morning?

 

Me neither. This is annoying.

 

SHLDV aren't tradeable either and my broker doesn't know when they will be converted to tradeable shares.  I believe it's after close tonight but wanted to verify with IB.  Messy spin-off from the shares/when issued standpoint.

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Cost basis post-spinoff

 

Sears: Previous Basis * ~0.8

Land's End: Previous Basis *.2 * (1/.300795)

 

Not understanding the math here.

 

PB x .2 x (1/.300795) = PB x .665 <== seems too high

 

Given the spin-off ratios wouldn't the math work out something like this:

 

SHLD + LE = BASIS

LE = .3 x SHLD

 

SHLD + (.3 x SHLD) = BASIS

1.3 x SHLD = BASIS

SHLD = BASIS / 1.3

SHLD = BASIS x .769

 

LE = .3 x (BASIS x .769)

LE = BASIS x .231

 

Conceptually this makes sense to me, but I have no idea if I'm missing some convention of spin-off accounting that makes my math all wrong.  For example, is the sharing of cost basis to each piece (SHLD + LE) done based on something other than the ratio of shares held/spun?

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lands end share Price is sinking i cant not sell because i dont have the Shares in my Portfolio right now  >:(

 

Couldn't you just short it?  You'd immediately get the cash to use at your discretion.  Your short position in LE would later automatically cover when the shares are placed in your account.

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lands end share Price is sinking i cant not sell because i dont have the Shares in my Portfolio right now  >:(

 

Couldn't you just short it?  You'd immediately get the cash to use at your discretion.  Your short position in LE would later automatically cover when the shares are placed in your account.

 

no this doesnt work at my german Broker  :( i hope today evening i get the Shares

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The ratio of shares issued in the spin-off is irrelevant. The number of Land's End shares was determined by Sears and its investment banker to produce an approximate range of prices at which they wanted Land's End shares to trade after the spin. There are a number of methods of calculating the apportionment of the pre-spin cost basis, and, yes, the total cost basis of Sears pre-spin and the sum of the cost bases of Sears post-spin plus Land's End have to be equal. If you bought the Sears shares in the past couple of years your brokerage will perform the allocation for you (whether you want them to or not). One method is to use the closing price of the shares on the day the distribution is effected (today). So per share Cost Basis of Sears pre-spin x closing price of Sears shares on distribution date/(closing price of Sears shares on distribution date + .300795 x closing price of Land's End shares on distribution date) gives you the per share cost basis of your Sears holdings post spin.

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lands end share Price is sinking i cant not sell because i dont have the Shares in my Portfolio right now  >:(

 

Argh. I patiently waited for the day of the spinoff, turns out we don't have our shares in the account, and now the stock is tanking. Really pisses me off.

 

If you contact your brokerage there is a good chance they will sell your LE shares even if they haven't shown up in your account, I know mine will.  I usually see a few days delay between the spin-off date and the date the shares show up in my account.  I believe it is just a processing delay on the brokerages part.

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Is this a concern?

 

"Equity One names David Lukes as next CEO

Equity One (EQY) announced that David R. Lukes will join the company no later than May 31 as an Executive Vice President and will become its CEO upon the departure of Jeffrey S. Olson later this year. Lukes most recently served as President and CEO of Sears Holdings Corporation (SHLD) affiliate Seritage Realty Trust."

 

This is really unfortunate. Wish EOY would announce a deal to buy a big chunk of the Seritage portfolio later...but I guess that's just a pipe dream of me...

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Is this a concern?

 

"Equity One names David Lukes as next CEO

Equity One (EQY) announced that David R. Lukes will join the company no later than May 31 as an Executive Vice President and will become its CEO upon the departure of Jeffrey S. Olson later this year. Lukes most recently served as President and CEO of Sears Holdings Corporation (SHLD) affiliate Seritage Realty Trust."

 

This is really unfortunate. Wish EOY would announce a deal to buy a big chunk of the Seritage portfolio later...but I guess that's just a pipe dream of me...

 

Depends who SHLD hires for Seritage.  A multi-billion dollar operation like Equity One must have been quite impressed by Lukes' progress at Seritage (his only CEO gig) to give him the reigns.

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Depends who SHLD hires for Seritage.  A multi-billion dollar operation like Equity One must have been quite impressed by Lukes' progress at Seritage (his only CEO gig) to give him the reigns.

 

Not sure about that. Base on the press release, the president of EQY knows David for 10 years. I think that's more likely the reason.

 

Beside, what is the progress at Seritage that EQY see that we don't see?

 

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Depends who SHLD hires for Seritage.  A multi-billion dollar operation like Equity One must have been quite impressed by Lukes' progress at Seritage (his only CEO gig) to give him the reigns.

 

Not sure about that. Base on the press release, the president of EQY knows David for 10 years. I think that's more likely the reason.

 

Beside, what is the progress at Seritage that EQY see that we don't see?

 

Lukes could simply give a little more color during interviews.  We don't know why Lukes is leaving, I was just giving one possible reason.

 

With that said, I like Lukes and I wish he was staying.

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lands end share Price is sinking i cant not sell because i dont have the Shares in my Portfolio right now  >:(

 

Argh. I patiently waited for the day of the spinoff, turns out we don't have our shares in the account, and now the stock is tanking. Really pisses me off.

 

If you contact your brokerage there is a good chance they will sell your LE shares even if they haven't shown up in your account, I know mine will.  I usually see a few days delay between the spin-off date and the date the shares show up in my account.  I believe it is just a processing delay on the brokerages part.

 

I see my shares on the TD account.

 

Also -- I read the WSJ article, seems to focus on Sears unlocking value and that may not be good for the bondholders. Only in the last sentence they say that Sears will get 500M from LE spin-off......how is all of this bad for bondholders!

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lands end share Price is sinking i cant not sell because i dont have the Shares in my Portfolio right now  >:(

 

Argh. I patiently waited for the day of the spinoff, turns out we don't have our shares in the account, and now the stock is tanking. Really pisses me off.

 

If you contact your brokerage there is a good chance they will sell your LE shares even if they haven't shown up in your account, I know mine will.  I usually see a few days delay between the spin-off date and the date the shares show up in my account.  I believe it is just a processing delay on the brokerages part.

 

I just talked to my broker (MerrillEdge), and they said they won't be getting the shares until Thursday, and won't show up in my account until Friday. This is ridiculous, since the shares are showing up for Scottrade and TD. Is this the broker's fault? Maybe I can talk them into giving me something special as a courtesy.

 

Also, I might just short LEDMV now. I've never shorted a stock before. Anyone know how I can figure out the borrowing cost? I'll only be shorting it for this week, so hopefully it won't cost me too much.

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Guest wellmont

LE is trading. the when issued is not. the ledmv was a placeholder that was tracking the price of LE until they appear in your account.

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