Studesy Posted April 14, 2014 Share Posted April 14, 2014 A handy little cost basis calculator for all recent spin-offs. I just used this to compute my cost basis for new SHLD and LE shares. Seems to function accurately. Just select spin-off company, input original cost basis, and new costs are calculated. http://www.costbasistools.com/spinoff/calculator.php Link to comment Share on other sites More sharing options...
Guest wellmont Posted April 14, 2014 Share Posted April 14, 2014 With the dearth of information on SHLD, anyone planning on attending the AGM in May? to get a further dearth of information? :) sorry. :-[ Link to comment Share on other sites More sharing options...
heth247 Posted April 14, 2014 Share Posted April 14, 2014 Anybody got their SHLDV shares settled to SHLD? Mine is still pending in Scottrade. And I cannot reach them by phone (guess it is tax peak time). Link to comment Share on other sites More sharing options...
bobp Posted April 14, 2014 Share Posted April 14, 2014 If you go you should wear one of their fake mustaches. With the dearth of information on SHLD, anyone planning on attending the AGM in May? Link to comment Share on other sites More sharing options...
elevensecsrt4 Posted April 14, 2014 Share Posted April 14, 2014 Anybody got their SHLDV shares settled to SHLD? Mine is still pending in Scottrade. And I cannot reach them by phone (guess it is tax peak time). my broker said they would wait until they received instructions from the company before they converted them :-\ whenever that is Link to comment Share on other sites More sharing options...
peridotcapital Posted April 14, 2014 Share Posted April 14, 2014 New post by Eddie http://blog.searsholdings.com/eddie-lampert/spinoffs-and-lands-end/ These two quotes are especially annoying: "Sears Holdings opted for a spinoff – a legal split that allows each company to focus on managing its own business, yet still work together in some ways." Tell Warren Buffett that you have to be legally separated via a spinoff to focus on managing your own business. You simply give LE management full discretion to manage their business. End of story. Lands’ End will be able to invest its profits without having to distribute them to Sears Holdings. This makes it sound like LE has a legal obligation to distribute its annual free cash flow to the parent. In reality, if Eddie wants to let LE keep their free cash flow and reinvest it into the business as they see fit, he can simply let them do that. This is all just PR bs in my view. It's obvious he's not going to tell us why he really spun off LE, which is fine, but don't feed us this garbage. Link to comment Share on other sites More sharing options...
peridotcapital Posted April 14, 2014 Share Posted April 14, 2014 With the dearth of information on SHLD, anyone planning on attending the AGM in May? I am fully prepared to be disappointed, but I am going. Want to attend one and never did when I owned the stock in size back in the mid 2000's. So I figured this one could potentially be quite interesting. Fingers crossed anyway. I'll be happy to report back with my notes, assuming there is anything said worth writing down. Link to comment Share on other sites More sharing options...
heth247 Posted April 14, 2014 Share Posted April 14, 2014 With the dearth of information on SHLD, anyone planning on attending the AGM in May? I am fully prepared to be disappointed, but I am going. Want to attend one and never did when I owned the stock in size back in the mid 2000's. So I figured this one could potentially be quite interesting. Fingers crossed anyway. I'll be happy to report back with my notes, assuming there is anything said worth writing down. Look forward to your notes, Chad, thanks! Link to comment Share on other sites More sharing options...
muscleman Posted April 14, 2014 Share Posted April 14, 2014 New post by Eddie http://blog.searsholdings.com/eddie-lampert/spinoffs-and-lands-end/ These two quotes are especially annoying: "Sears Holdings opted for a spinoff – a legal split that allows each company to focus on managing its own business, yet still work together in some ways." Tell Warren Buffett that you have to be legally separated via a spinoff to focus on managing your own business. You simply give LE management full discretion to manage their business. End of story. Lands’ End will be able to invest its profits without having to distribute them to Sears Holdings. This makes it sound like LE has a legal obligation to distribute its annual free cash flow to the parent. In reality, if Eddie wants to let LE keep their free cash flow and reinvest it into the business as they see fit, he can simply let them do that. This is all just PR bs in my view. It's obvious he's not going to tell us why he really spun off LE, which is fine, but don't feed us this garbage. I think the fact that Eddie no longer keeps silent implies that his patience has ended. Maybe he is facing massive redemption requests right now. I would want to see his fund wound down and he has only his personal stakes. That would give other activist investors a chance to grab stakes and spin off the RE. :) Link to comment Share on other sites More sharing options...
Guest wellmont Posted April 14, 2014 Share Posted April 14, 2014 when you write at blog.searsholdings.com you essentially are quiet. besides he's not saying anything useful for shareholders. Link to comment Share on other sites More sharing options...
alertmeipp Posted April 15, 2014 Author Share Posted April 15, 2014 when you write at blog.searsholdings.com you essentially are quiet. besides he's not saying anything useful for shareholders. The whole blog thing is weird. Not that I don't like to know more about his thought, but it seems like he is patting his own back. Link to comment Share on other sites More sharing options...
Luke 532 Posted April 15, 2014 Share Posted April 15, 2014 when you write at blog.searsholdings.com you essentially are quiet. besides he's not saying anything useful for shareholders. The whole blog thing is weird. Not that I don't like to know more about his thought, but it seems like he is patting his own back. I think it provides him a simple real-time platform to communicate with shareholders without having his words twisted by traditional media. Link to comment Share on other sites More sharing options...
Liberty Posted April 15, 2014 Share Posted April 15, 2014 I think it provides him a simple real-time platform to communicate with shareholders without having his words twisted by traditional media. He certainly wouldn't want that. He's smart enough to do the twisting himself. Link to comment Share on other sites More sharing options...
20ppy Posted April 15, 2014 Share Posted April 15, 2014 It seems that EL is preparing the Home Services for spin off as well, in addition to Auto Services and all the property sales. All the cash he gets should be more than he needs for SYW. So, it should become more clear as to what he intends to do. Link to comment Share on other sites More sharing options...
hardincap Posted April 15, 2014 Share Posted April 15, 2014 Anyone else think the shopyourway.com user experience is absolutely abysmal? Whoever is in charge of this website clearly has no idea what they're doing. Its as if Lampert barked down orders to make their online shopping experience more social and web 2.0 and some contractors slapped this site together with no coherent strategy for the user experience. Its difficult to have any faith in the turnaround when Lampert & co touts this page as evidence of progress... Link to comment Share on other sites More sharing options...
TeddyLampert Posted April 15, 2014 Share Posted April 15, 2014 Other than the new president of Home Services what other evidence is there that change is afoot or evidence that it is going to be spun off? Link to comment Share on other sites More sharing options...
20ppy Posted April 15, 2014 Share Posted April 15, 2014 They've said that they are going to spin off more. They have about 15milliom service calls annually, the business can be run rather separately and be accountable accordingly. The more he spins off, the more value exposed. Isn't it same as selling RE properties ? Maybe he already started selling things … Anyway, my speculations. Link to comment Share on other sites More sharing options...
Luke 532 Posted April 15, 2014 Share Posted April 15, 2014 Sears Holdings Names Arun Arora To Lead Sears Home Services Business http://searsholdings.mediaroom.com/index.php?s=16310&item=137282 Link to comment Share on other sites More sharing options...
fareastwarriors Posted April 15, 2014 Share Posted April 15, 2014 A Gloomy Outlook for Sears' Latest Spinoff The sportswear retailer, recently spun out of Sears Holdings, could be hampered in its quest for growth http://online.barrons.com/news/articles/SB50001424053111904223604579487600039323662 Link to comment Share on other sites More sharing options...
tiddman Posted April 15, 2014 Share Posted April 15, 2014 This article: http://online.wsj.com/news/articles/SB10001424052702304512504579493891454563648 makes an interesting point that before these spins, Lampert has the spun company pay Sears a big chunk of its cash before the spin. This results in Sears getting more cash, but the spun company being under-funded and more reliant on debt. This probably contributed to Orchard's bankruptcy. Desperate times call for desperate measures... Link to comment Share on other sites More sharing options...
BTShine Posted April 15, 2014 Share Posted April 15, 2014 This article: http://online.wsj.com/news/articles/SB10001424052702304512504579493891454563648 makes an interesting point that before these spins, Lampert has the spun company pay Sears a big chunk of its cash before the spin. This results in Sears getting more cash, but the spun company being under-funded and more reliant on debt. This probably contributed to Orchard's bankruptcy. Desperate times call for desperate measures... There can be different takes on this... I know for Orchard Supply, Sears said it was as much a deleveraging move as anything. They might've discussed this at the annual meeting. Orchard wasn't making money, and spinning it off took a lot of leverage off of SHLD's books. As for SHOS and LE, both companies are consistently profitable. Taking some cash in each spin-off allows the parent co. to access liquidity to help fund its way through the next few years. Low interest rates have required a lot of cash to fund the pension. There is still a $35 Bn retailer in here, which has some areas of profitability, and some areas of opportunity that can be used for realizing value. Clearly some parts of the company need to be shut down (which is happening). I am optimistic. Hopefully I'm not being an incorrigible optimist. Link to comment Share on other sites More sharing options...
ni-co Posted April 15, 2014 Share Posted April 15, 2014 This article: http://online.wsj.com/news/articles/SB10001424052702304512504579493891454563648 makes an interesting point that before these spins, Lampert has the spun company pay Sears a big chunk of its cash before the spin. This results in Sears getting more cash, but the spun company being under-funded and more reliant on debt. This probably contributed to Orchard's bankruptcy. Desperate times call for desperate measures... There can be different takes on this... I know for Orchard Supply, Sears said it was as much a deleveraging move as anything. They might've discussed this at the annual meeting. Orchard wasn't making money, and spinning it off took a lot of leverage off of SHLD's books. As for SHOS and LE, both companies are consistently profitable. Taking some cash in each spin-off allows the parent co. to access liquidity to help fund its way through the next few years. Low interest rates have required a lot of cash to fund the pension. There is still a $35 Bn retailer in here, which has some areas of profitability, and some areas of opportunity that can be used for realizing value. Clearly some parts of the company need to be shut down (which is happening). I am optimistic. Hopefully I'm not being an incorrigible optimist. +1 Especially considering the fact that LE has generated between $100m and $220m yearly in EBITDA for the last few years. I think this LE bankruptcy talk is really overblown. Link to comment Share on other sites More sharing options...
Luke 532 Posted April 16, 2014 Share Posted April 16, 2014 Don't be surprised if we get a Lampert/other filing soon. A near million-share order flashed on the screen today, executed, and the trade data was removed. Could be related to some sort of dark pool transaction. Link to comment Share on other sites More sharing options...
merkhet Posted April 17, 2014 Share Posted April 17, 2014 Don't be surprised if we get a Lampert/other filing soon. A near million-share order flashed on the screen today, executed, and the trade data was removed. Could be related to some sort of dark pool transaction. How did you know that the trade was executed? Link to comment Share on other sites More sharing options...
Luke 532 Posted April 17, 2014 Share Posted April 17, 2014 Don't be surprised if we get a Lampert/other filing soon. A near million-share order flashed on the screen today, executed, and the trade data was removed. Could be related to some sort of dark pool transaction. How did you know that the trade was executed? The real-time Level 2 data showed the transaction around 3:45pm. The daily trade volume spiked on my other platform (Trade Architect via TD Ameritrade) but was then erased a few minutes later. Link to comment Share on other sites More sharing options...
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