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SHLDQ - Sears Holdings Corp


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http://finance.yahoo.com/news/curbside-convenience-sears-introduces-vehicle-150000781.html

 

Interesting , Sears now has a platform to provide more and more services …

 

Latest blog post...

Expanding Curbside Convenience to Include In-Vehicle Returns & Exchanges

http://blog.searsholdings.com/leadership-viewpoint/expanding-curbside-convenience-to-include-in-vehicle-returns-exchanges/

 

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Once it reached 1000 pg, Andy Kilpatrick will get copyrights of these pages and write a book "Of illusory value - a story of Lampert & sears".

 

Can we mark this post and revisit in a few years, factoring in any spinoffs between now and then?  "Illusory value" at $28.13.  The value here is very real.

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Once it reached 1000 pg, Andy Kilpatrick will get copyrights of these pages and write a book "Of illusory value - a story of Lampert & sears".

 

Can we mark this post and revisit in a few years, factoring in any spinoffs between now and then?  "Illusory value" at $28.13.  The value here is very real.

 

Yes, If I'm wrong, I'll send $500 to a favorite charity of yours. Why don't every bull and bear make a bet like this? It'll make it interesting and beneficial to society.

 

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Once it reached 1000 pg, Andy Kilpatrick will get copyrights of these pages and write a book "Of illusory value - a story of Lampert & sears".

 

Can we mark this post and revisit in a few years, factoring in any spinoffs between now and then?  "Illusory value" at $28.13.  The value here is very real.

 

Yes, If I'm wrong, I'll send $500 to a favorite charity of yours. Why don't every bull and bear make a bet like this? It'll make it interesting and beneficial to society.

 

Sounds good.  Prison Fellowship would be my choice as they do some really good stuff: http://www.prisonfellowship.org/

 

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I think it is sort of funny how someone like Baker Street could put in so much time and money into SHLD and completely pull out in less than a year with potentially no profit.  Had Baker Street stayed the course it would be looking ugly right now with those call options.

 

I would guess that Baker Street fellow put in more due diligence than anyone here, but he had the discipline to get out when his thesis was not working.  I am not saying he will be right or wrong, but it can be helpful to realize a thesis is broken with an investment like this.

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But the SHLD story CAN'T end!! What will everyone speculate about?

 

SHLD thread must get to 1000 pages! :)

 

Once it reached 1000 pg, Andy Kilpatrick will get copyrights of these pages and write a book "Of illusory value - a story of Lampert & sears".

 

"Of Fake Mustaches and Men:  The Edward Lampert Story"

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So now Berkowitz takes 0.27% of Fairholme to buy more SHLD. 

 

I remember a CNBC interview he gave with David Faber where he said if this continues, at the end of it there will be two shares.  Eddie's and Fairholmes.

 

Sure looks like it's headed that way.

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Berkowitz bought 839,000 more shares and looks like he wants to participate in the loan via. St. Joe

 

http://www.sec.gov/Archives/edgar/data/1056831/000091957414005278/d6101781_13-d.htm

 

Very interesting. Now BB is filing a 13D, instead of 13G. And they want to lend up to $100MM. It is not clear to me whether that will be on top of the 400MM or will become part of the 400MM.

 

"The Reporting Persons have acquired their Shares of the Issuer for investment.  The Reporting Persons evaluate their investment in the Shares on a continual basis.  The St. Joe Company, an affiliate of the Fund and Fairholme, is in discussions with the Issuer regarding the $400 million secured short-term loan disclosed on the 8-K filed by the Issuer on September 15, 2014 (the "Short-Term Loan").  The St. Joe Company may invest up to $100 million in participations relating to the Short Term Loan.  The Reporting Persons have no other plans or proposals as of the date of this filing which, relate to, or would result in, any of the actions enumerated in Item 4 of the instructions to Schedule 13D, except as set forth below."

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ESL should have gotten the loan from him or anyone else on the planet earth even if the terms were a little worse, imop.  Damn Berkowitz has a huge set.

 

Unless Lampert was trying to send a different message...

I wouldn't be surprised if this transaction was for nothing more than to send the message that "we have access to liquidity" for negotiation purposes on an auto center, Canada, or property deal.  Basically, we don't have to sell this stuff on the cheap.  Loan due 12/31 (prior to receivables coming due for holiday season) would make me think this isn't necessarily for the holiday season.  Although the 2-month extension, if utilized, could make this a possibility.

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So now Berkowitz takes 0.27% of Fairholme to buy more SHLD. 

 

I remember a CNBC interview he gave with David Faber where he said if this continues, at the end of it there will be two shares.  Eddie's and Fairholmes.

 

Sure looks like it's headed that way.

 

Actually, if you compare today's 13D with February's 13G, you'll see that the Fairholme Mutual Fund entities (FAIRX & FAAFX) have not budged in terms of allocation.

 

His personal investment, however, went up from 783,000 to 913,000 in the interim, and the rest of the increase between the two filings likely goes to his hedge fund.

 

Picasso,

 

Looks like Baker street still has $80M worth of call options on SHLD.

 

http://www.sec.gov/Archives/edgar/data/1488207/000092189514001846/xslForm13F_X01/infotable.xml

 

That's 80 million face amount.  I think its around $2 million in call options or something.

 

Yea, they have call options good for 2 million shares.

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It is not clear to me whether that will be on top of the 400MM or will become part of the 400MM.

 

"The Reporting Persons have acquired their Shares of the Issuer for investment.  The Reporting Persons evaluate their investment in the Shares on a continual basis.  The St. Joe Company, an affiliate of the Fund and Fairholme, is in discussions with the Issuer regarding the $400 million secured short-term loan disclosed on the 8-K filed by the Issuer on September 15, 2014 (the "Short-Term Loan").  The St. Joe Company may invest up to $100 million in participations relating to the Short Term Loan.  The Reporting Persons have no other plans or proposals as of the date of this filing which, relate to, or would result in, any of the actions enumerated in Item 4 of the instructions to Schedule 13D, except as set forth below."

 

Well, seems to me Berkowitz wants a piece of the cake. Is it only me, or does this sound a little bit like a threat if you read between the lines? I wonder if they discussed this before the filing. The timing of this filing and its wording make me think that they did not.

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Methinks there is some jockeying for pole position on a chunk of real estate. It's a personal win-win for Lampert and Berkowitz. Get the company over its liquidity hump or walk away with some prime real estate.

 

There is no loan agreement filed yet so all we have is the 8-K. My questions would be how is the real estate valued?  Is it going to be based on a more depressed valuation, but still plausible, or is it going to be the value determined by a third party as of the time it would be foreclosed on?  It sounds as if 25 properties have been pre-selected to secure the loan, but it's interesting. Lampert is able to substitute one or more of the properties in his "reasonable determination". That is a weak standard and just means if he feels like it. Maybe the actual documentation will have some parameters around that, but I would guess it doesn't. It's the same theory a kid has. It's easier to say you're sorry than ask for permission.

 

There is no conspiracy theory. This seems like a smart business decision for Lampert and maybe Berkowitz (if he participates) personally. It doesn't mean they are trying to sneak something over on shareholders or want a negative result, but if it happens they get a nice prize behind door #2.

 

I say again that the optics here are terrible. Lampert has too many differing and competing interests. He's CEO, has personal holdings and holding through ESL and holds various tranches of debt. 

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Methinks there is some jockeying for pole position on a chunk of real estate. It's a personal win-win for Lampert and Berkowitz. Get the company over its liquidity hump or walk away with some prime real estate.

 

There is no loan agreement filed yet so all we have is the 8-K. My questions would be how is the real estate valued?  Is it going to be based on a more depressed valuation, but still plausible, or is it going to be the value determined by a third party as of the time it would be foreclosed on?  It sounds as if 25 properties have been pre-selected to secure the loan, but it's interesting. Lampert is able to substitute one or more of the properties in his "reasonable determination". That is a weak standard and just means if he feels like it. Maybe the actual documentation will have some parameters around that, but I would guess it doesn't. It's the same theory a kid has. It's easier to say you're sorry than ask for permission.

 

There is no conspiracy theory. This seems like a smart business decision for Lampert and maybe Berkowitz (if he participates) personally. It doesn't mean they are trying to sneak something over on shareholders or want a negative result, but if it happens they get a nice prize behind door #2.

 

I say again that the optics here are terrible. Lampert has too many differing and competing interests. He's CEO, has personal holdings and holding through ESL and holds various tranches of debt.

 

Yes. The conflicts of interest make me wonder whether this would hold before a bankruptcy court.

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