texual Posted October 23, 2014 Share Posted October 23, 2014 I no longer feel I have an adequate grasp on what is happening at Sears. I just wanted to buy some common stock and receive spin offs like LE which were nice. I thought ESL could contain the mess within the basic holdings company but after I avoided SHOS and sold Orchard, I figured he was going to sell the real estate faster. Little did I know... Today I literally have no idea what these Rights are about, how to deal with them. I also do not understand the impact of this dilution or how this affects my investment. I took a real and severe loss but I sold my SHLD position and kept LE. Best of luck with this investment guys. This may be better suited for sophisticated investors. You're all a heck of a lot smarter than me! The Sears story ends for me here. Link to comment Share on other sites More sharing options...
HeresyValue Posted October 23, 2014 Share Posted October 23, 2014 I was trying to estimate what price the warrants will trade adjusted for dilution. I was not sure my adjustment was correct. From anther point of view, for each share I own SHLD now, I will need to cough up $635/106=$6 to buy one share of the new notes, which comes with a one share of warrants that will trade at around $10 (according to your logic), doesn't that sound too good to be true? Or what am I missing here? thanks. Sorry, I just realized my mistake, it is not one notes + one warrants. It should be one notes + 22/106 warrants. So that is still $10x0.2=$2 value of warrants for each $6 of notes I invest. Sounds wonderful? Not to mention that I could sell the notes shortly after for close to $6 value, or just sit on it pocketing 8% interest for 5 years. Notes will not be listed, but are transferable. Link to comment Share on other sites More sharing options...
ni-co Posted October 23, 2014 Share Posted October 23, 2014 Sears Laying Off 5,000, Closing Over 100 Outlets Closures include 46 Kmart, 30 Sears and 31 Sears Auto Center locations. 5,457 workers will lose their jobs. Pennsylvania, Michigan and Indiana are hardest hit. […] Inquiries with stores, mall managers and reporters across the country reveal that at least 46 Kmart stores, 30 Sears department stores and 31 Sears Auto Centers are scheduled to close before the end of January. […] These closures add to the 96 stores Sears Holdings announced it had closed in the first half of fiscal 2014. That compares to 93 locations shuttered in all of 2013. http://seekingalpha.com/article/2587065-exclusive-sears-laying-off-5000-closing-over-100-outlets I don't know how much of this is new. Apart from those "inquiries" he doesn't name any sources and this is a brand new SA account – so take it with a grain of salt. Link to comment Share on other sites More sharing options...
hardincap Posted October 23, 2014 Share Posted October 23, 2014 Great if true. Is anyone able to confirm? Link to comment Share on other sites More sharing options...
Mephistopheles Posted October 23, 2014 Share Posted October 23, 2014 I cross checked it with this list: http://investcorrectly.com/20141016/sears-kmart-2014-closure-list/ Most of them are on there, with the exception of like 15ish. Link to comment Share on other sites More sharing options...
stevevri Posted October 23, 2014 Share Posted October 23, 2014 Hi Guys, I maintain that list or at least attempt to (time permitting) and have updated. There was about 15 stores, and a couple of Sears Autos not present. It's updated. Link to comment Share on other sites More sharing options...
ni-co Posted October 23, 2014 Share Posted October 23, 2014 Sears Laying Off 5,000, Closing Over 100 Outlets Closures include 46 Kmart, 30 Sears and 31 Sears Auto Center locations. 5,457 workers will lose their jobs. Pennsylvania, Michigan and Indiana are hardest hit. […] Inquiries with stores, mall managers and reporters across the country reveal that at least 46 Kmart stores, 30 Sears department stores and 31 Sears Auto Centers are scheduled to close before the end of January. […] These closures add to the 96 stores Sears Holdings announced it had closed in the first half of fiscal 2014. That compares to 93 locations shuttered in all of 2013. http://seekingalpha.com/article/2587065-exclusive-sears-laying-off-5000-closing-over-100-outlets I don't know how much of this is new. Apart from those "inquiries" he doesn't name any sources and this is a brand new SA account – so take it with a grain of salt. Re. that grain of salt: In an email to USA Today, Sears spokesman Howard Riefs said the store count and closures "isn't accurate,'' but did not provide store closures or layoff numbers. "As we stated in our (second quarter earnings report), we disclosed that we would be closing unprofitable stores as leases expire and in some cases will accelerate closings when it is economically prudent. And that we would consider closing additional stores during the remainder of the year,'' Riefs said. "Make no mistake, we believe the store will continue to play an integral role in our transformation, however, if a store is not generating a profit, it is straightforward that the store should be considered for closure." Pressed further, Riefs said in subsequent email: "We're not going to go store by store since we don't do that outside our quarterly results." http://www.usatoday.com/story/money/business/2014/10/23/sears-disputes-report-of-100-store-closures-widespread-layoffs/17770199/ Link to comment Share on other sites More sharing options...
stevevri Posted October 23, 2014 Share Posted October 23, 2014 I found non-SA sources for all the stores that I was missing in the investcorrectly list, but I will say that most of the stores had closures that had been announced in last month or so already. So... I had just missed them but they were already closing. Link to comment Share on other sites More sharing options...
BTShine Posted October 23, 2014 Share Posted October 23, 2014 Bruce B. and Fairholme bought 250,000 shares in the past few days. http://www.sec.gov/Archives/edgar/data/1214344/000091957414005888/xslF345X03/p6170348.xml Link to comment Share on other sites More sharing options...
Luke 532 Posted October 23, 2014 Share Posted October 23, 2014 Bruce B. and Fairholme bought 250,000 shares in the past few days. http://www.sec.gov/Archives/edgar/data/1214344/000091957414005888/xslF345X03/p6170348.xml That makes 400,000+ shares this week for Berkowitz. He must hate the rights offering for warrants/debt. Link to comment Share on other sites More sharing options...
ni-co Posted October 23, 2014 Share Posted October 23, 2014 Bruce B. and Fairholme bought 250,000 shares in the past few days. http://www.sec.gov/Archives/edgar/data/1214344/000091957414005888/xslF345X03/p6170348.xml That makes 400,000+ shares this week for Berkowitz. He must hate the rights offering for warrants/debt. I wouldn't give this too much weight. This could simply be money inflows. Link to comment Share on other sites More sharing options...
benhacker Posted October 23, 2014 Share Posted October 23, 2014 I wouldn't give this too much weight. This could simply be money inflows. I'm not saying this is important info or not (Bruce buying), but I would bet a fair amount of money that he is *not* getting inflows right now... Link to comment Share on other sites More sharing options...
merkhet Posted October 23, 2014 Share Posted October 23, 2014 Yea. I was about to post the same. I doubt he's getting inflows. Link to comment Share on other sites More sharing options...
sampr01 Posted October 23, 2014 Share Posted October 23, 2014 Hi Please some one educate me on rights offering. How can we get Warrants?. Thanks in advance Link to comment Share on other sites More sharing options...
Luke 532 Posted October 23, 2014 Share Posted October 23, 2014 I wouldn't give this too much weight. This could simply be money inflows. Of course it could be, but he isn't forced to buy SHLD. He wouldn't if he hated the rights offering for warrants and debt. I don't remember seeing anything in FAIRX's prospectus saying he must own a certain percentage of SHLD at all times. :) Link to comment Share on other sites More sharing options...
Luke 532 Posted October 23, 2014 Share Posted October 23, 2014 Bruce B. and Fairholme bought 250,000 shares in the past few days. http://www.sec.gov/Archives/edgar/data/1214344/000091957414005888/xslF345X03/p6170348.xml That makes 400,000+ shares this week for Berkowitz. He must hate the rights offering for warrants/debt. And with this week's purchases he has exceeded 26,000,000 shares. Link to comment Share on other sites More sharing options...
ni-co Posted October 23, 2014 Share Posted October 23, 2014 Hey guys, I didn't say it was a negative. I'm aware of the fact that he likes the stock. Yet, keep in mind that this is an 8 bn fund. He has to publish every movement since he went active – that's all I'm saying. Judge the rights offering on its own merit. We don't even know the exact conditions yet. Link to comment Share on other sites More sharing options...
BTShine Posted October 23, 2014 Share Posted October 23, 2014 I wouldn't give this too much weight. This could simply be money inflows. Of course it could be, but he isn't forced to buy SHLD. He wouldn't if he hated the rights offering for warrants and debt. I don't remember seeing anything in FAIRX's prospectus saying he must own a certain percentage of SHLD at all times. :) Right. If he gets $10 million of inflows he's not obligated to buy SHLD or anything else. He could sit in cash. Or, he could buy almost any other stock in the marketplace. All I'm taking away is that Bruce B. still likes the SHLD. Link to comment Share on other sites More sharing options...
Luke 532 Posted October 23, 2014 Share Posted October 23, 2014 It's interesting that Fairholme's position will probably exceed ESL's in the next few weeks. Link to comment Share on other sites More sharing options...
wisdom Posted October 24, 2014 Share Posted October 24, 2014 http://www.bloomberg.com/video/amazon-sees-business-in-terms-of-decades-munster-~xCQ6yNgSYGbB9UWh8Tnfw.html?cmpid=yhoo This is considered visionary - $140B market cap. Bezos thinks in terms of decades. At least SHLD has MOS. Link to comment Share on other sites More sharing options...
HeresyValue Posted October 24, 2014 Share Posted October 24, 2014 It's interesting that Fairholme's position will probably exceed ESL's in the next few weeks. Do you know approx how many shares either holds? Link to comment Share on other sites More sharing options...
Luke 532 Posted October 24, 2014 Share Posted October 24, 2014 It's interesting that Fairholme's position will probably exceed ESL's in the next few weeks. Do you know approx how many shares either holds? Go here: http://www.sec.gov/edgar/searchedgar/companysearch.html Search "Fairholme" or whatever company you want to look up and you'll find everything you need. It's roughly 25M shares each. Link to comment Share on other sites More sharing options...
krazeenyc Posted October 24, 2014 Share Posted October 24, 2014 It's interesting that Fairholme's position will probably exceed ESL's in the next few weeks. Do you know approx how many shares either holds? Go here: http://www.sec.gov/edgar/searchedgar/companysearch.html Search "Fairholme" or whatever company you want to look up and you'll find everything you need. It's roughly 25M shares each. Just sold my position. I'm just not interested in participating in the bond offering -- bruce probably bought my shares. Link to comment Share on other sites More sharing options...
20ppy Posted October 24, 2014 Share Posted October 24, 2014 Just sold my position. I'm just not interested in participating in the bond offering -- bruce probably bought my shares. One can sell these rights, correct? Link to comment Share on other sites More sharing options...
krazeenyc Posted October 24, 2014 Share Posted October 24, 2014 Just sold my position. I'm just not interested in participating in the bond offering -- bruce probably bought my shares. One can sell these rights, correct? Of course. Link to comment Share on other sites More sharing options...
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