SHLDQ - Sears Holdings Corp

[Studesy]

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.

 

I would say this is the Broker's fault.  I only tried to sell spun out shares once before they showed up in my account and my broker (Qtrade Canada) was happy to do this for me.  Other than that I have have only added to spin-off shares after they have started trading.  I does seem odd that they say they don't "get" the shares until Thursday though.....this essentially means that you are losing the value of the LE shares from today until thursday and then getting it back...because the SHLD shares you currently have are the "new" SHLD shares which do not include LE.

[Studesy]

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.

 

I would say this is the Broker's fault.  I only tried to sell spun out shares once before they showed up in my account and my broker (Qtrade Canada) was happy to do this for me.  Other than that I have have only added to spin-off shares after they have started trading.  I does seem odd that they say they don't "get" the shares until Thursday though.....this essentially means that you are losing the value of the LE shares from today until thursday and then getting it back...because the SHLD shares you currently have are the "new" SHLD shares which do not include LE.

 

Mine LE shares haven't shown up yet either BTW.

[Mephistopheles]

I spoke to them and they agreed to short them for me while waiving the borrow cost for this week. My first short. :)

[merkhet]

In the U.S., there is a a short sale restriction on Land's End right now. Might have been part of your problem.

[20ppy]

LE's short ratio should be as high as SHLD, so might we see some short queeze with LE? Shorts may not have intended to short this much with LE per se. Who knows.

 

My wife's IRA account has 100% in SHLD (with Wells Fargo Brokers), they don't have LE shares yet. This brokerage is lousy in this regards. But the account offers free trades, etc. I am not that eager to sell LE shares yet, it's free money and we will use that money to buy more SHLD shares eventually.

[Chalk bag]

The valuation of LE at global apparel wholesaler multiples certainly baffle me. Too much turnaround and growth is priced into  this name and the explanation for me is either (1) people know that mgmts are studs or (2) Folks who are short SHLD are stuck shorting LE which generates decent CF -- and wants to get out. We'll see.

[fareastwarriors]

Rough First Day of Trading for Lands’ End, and Its Former Parent

 

 

http://dealbook.nytimes.com/2014/04/07/rough-first-day-of-trading-for-lands-end-and-its-former-parent/?_php=true&_type=blogs&module=BlogPost-Title&version=Blog%20Main&contentCollection=I.P.O./Offerings&action=Click&pgtype=Blogs&region=Body&_r=0

[phil_Buffett]

i got mine. sold all.  my new average Prices of my sears Holdings are very very low  ;D. thats nice.

[Luke 532]

Sears Holdings Names William Hutchinson To Lead Supply Chain Business Unit

http://searsholdings.mediaroom.com/index.php?s=16310&item=137279

[DCG]

Think I finally found a more poorly run business than Sears and K-Mart retail stores...and it's Sears Automotive. Awful experience with them. My wife had a terrible experience with them recently as well and for some reason I stupidly tried to give them a shot. They put the wrong person's tires on my car and let the other person drive away with my tires. Seems like every single experience I have with anything related to Sears is a disaster.

[Luke 532]

Just FYI for those looking at options, the $40-strike 2016 (24 months) calls are going for $8.45.

 

Another interesting trade possibility for those looking at the 2016 option chain (just SHLD, not SHLD + LE):  $37-strike calls although spread is wide at $7.40/$9.15 (mid-point $8.28).  No position on this yet.

 

I wish they had higher strikes on SHLD (tops out at $44) while the underlying is so low.

[CorpRaider]

Think I finally found a more poorly run business than Sears and K-Mart retail stores...and it's Sears Automotive. Awful experience with them. My wife had a terrible experience with them recently as well and for some reason I stupidly tried to give them a shot. They put the wrong person's tires on my car and let the other person drive away with my tires. Seems like every single experience I have with anything related to Sears is a disaster.

 

LOL.  Impossible but I had a vision of some jacked up elevated 4x4 truck driving off on your tesla wheels and them bringing out your tesla with off-road truck tires.

[muscleman]

Think I finally found a more poorly run business than Sears and K-Mart retail stores...and it's Sears Automotive. Awful experience with them. My wife had a terrible experience with them recently as well and for some reason I stupidly tried to give them a shot. They put the wrong person's tires on my car and let the other person drive away with my tires. Seems like every single experience I have with anything related to Sears is a disaster.

 

This is exactly why I gave up being a SHLD shareholder. I only made a small money but I am fine with that.

My point is that ESL has been behind the wheel for 8 years and the experience is still so bad, so I don't think it is possible to be a retail turnaround. I understand that ESL is not putting money into the store. But he can at least make these sales associates better with their customers. He doesn't need to spend a ton of Capex to fix that, does he? This means ESL is really poor at execution of the turnaround plan.

 

Interesting enough, Francis Chou seems to be betting on a retail turnaround here according to his letter. He said if this doesn't turnaround, there is sufficient MoS that he won't lose money. Yeah, the value of the RE. I get that. But I think the eventual outcome is likely 90% chance that he will break even and 10% chance that he will make a slam dunk.

[DCG]

They need to hire a real CEO. Eddie Lampert clearly has no idea how to run a retailer.

[heth247]

They need to hire a real CEO. Eddie Lampert clearly has no idea how to run a retailer.

 

The high turnover in the senior management is definitely concerning.  :-[

[drewdalton]

Hi Luke- Were you able to get your non-tradable SHLDV shares converted to tradable SHLD shares?  My broker (TD Waterhouse in Canada) still has not converted my shares.  TD said they currently don't have any instructions on how and when to convert them.  Do you have any suggestions that I could provide to them?

Thanks.

 

 

[Luke 532]

Hi Luke- Were you able to get your non-tradable SHLDV shares converted to tradable SHLD shares?  My broker (TD Waterhouse in Canada) still has not converted my shares.  TD said they currently don't have any instructions on how and when to convert them.  Do you have any suggestions that I could provide to them?

Thanks.

 

I pestered my broker (IB) about it and they converted them yesterday.  I just had my broker buy SHLD and then put them in my account and take away SHLDV.  Your broker can't control when SHLDV will be converted to SHLD, but they can buy SHLD for you and put it into your account.

[drewdalton]

Thanks Luke.

[Luke 532]

Thanks Luke.

 

You're welcome.  Make sure to verify the cost basis on the SHLDV/SHLD switch is correct.  The cost basis of what you paid for SHLDV should be identical to your cost basis on SHLD.

[drewdalton]

Luke- Just a follow up question.  When you say you had your broker buy SHLD and take away SHLDV, did you place an actual buy order and lay out the money from your account to buy SHLD?  When your broker took away SHLDV did you receive money from a sale of shares?  I don't quite understand the transactions you made to obtain the SHLD shares.

Thanks.

 

[Luke 532]

Luke- Just a follow up question.  When you say you had your broker buy SHLD and take away SHLDV, did you place an actual buy order and lay out the money from your account to buy SHLD?  When your broker took away SHLDV did you receive money from a sale of shares?  I don't quite understand the transactions you made to obtain the SHLD shares.

Thanks.

 

I didn't place any actual orders and no money was exchanged (since each SHLDV gives the right to 1 SHLD share).  I just talked with them via live chat and followed-up via their message center.

[drewdalton]

Thanks Luke.  I believe I know what you mean now.  It became clear when you said 1 SHLDV share gives you the right to 1 SHLD share.  I am going to try to get TD Waterhouse to make the conversion.  I will make sure they do it at the same cost basis.  Thanks again.

[Luke 532]

Thanks Luke.  I believe I know what you mean now.  It became clear when you said 1 SHLDV share gives you the right to 1 SHLD share.  I am going to try to get TD Waterhouse to make the conversion.  I will make sure they do it at the same cost basis.  Thanks again.

 

No worries.  If you have any more questions just send me a private message.

[heth247]

Luke- Just a follow up question.  When you say you had your broker buy SHLD and take away SHLDV, did you place an actual buy order and lay out the money from your account to buy SHLD?  When your broker took away SHLDV did you receive money from a sale of shares?  I don't quite understand the transactions you made to obtain the SHLD shares.

Thanks.

 

I didn't place any actual orders and no money was exchanged (since each SHLDV gives the right to 1 SHLD share).  I just talked with them via live chat and followed-up via their message center.

 

Why go through this if you don't plan to sell SHLD or SHLDV in the near future?

 

Btw, my SHLDV shares are still not converted to SHLD in my account with Scottrade.

[Luke 532]

Luke- Just a follow up question.  When you say you had your broker buy SHLD and take away SHLDV, did you place an actual buy order and lay out the money from your account to buy SHLD?  When your broker took away SHLDV did you receive money from a sale of shares?  I don't quite understand the transactions you made to obtain the SHLD shares.

Thanks.

 

I didn't place any actual orders and no money was exchanged (since each SHLDV gives the right to 1 SHLD share).  I just talked with them via live chat and followed-up via their message center.

 

Why go through this if you don't plan to sell SHLD or SHLDV in the near future?

 

Btw, my SHLDV shares are still not converted to SHLD in my account with Scottrade.

 

I always have sell orders on all my positions and you can't do that on SHLDV.  There's about a 1 in a million chance my sell order on SHLD gets filled in the near future (it's an extremely high price), but I want to take advantage of any odd occurrences (somebody places a large all-or-nothing/AON market order that matches up with my share count, a MM makes a huge mistake, etc.).  I figure it took a few e-mails to get this done so it made sense for me to do it.