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SHLDQ - Sears Holdings Corp


alertmeipp

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Eddie spends so much time reassuring shareholders and employees that Sears has ample liquidity and will be fine long term.  The amount of people that read his shareholder letters and blog posts pale in comparison to the readership of the New York Times.

 

Eddie should have taken the interview and used it to plug the Shop your way mastercard that he complained the media wasn't talking about, or talked about the scale of the shop your way program and how much $ and how many points are redeemed monthly.

 

Eddie wasted opportunity to steer the interview in the way that would give the read a sense that Sears wasn't dead just yet.  Now the NYT readers will read that piece and continue to believe that Sears has one foot in the grave.

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Eddie spends so much time reassuring shareholders and employees that Sears has ample liquidity and will be fine long term.  The amount of people that read his shareholder letters and blog posts pale in comparison to the readership of the New York Times.

 

Eddie should have taken the interview and used it to plug the Shop your way mastercard that he complained the media wasn't talking about, or talked about the scale of the shop your way program and how much $ and how many points are redeemed monthly.

 

Eddie wasted opportunity to steer the interview in the way that would give the read a sense that Sears wasn't dead just yet.  Now the NYT readers will read that piece and continue to believe that Sears has one foot in the grave.

 

You make an excellent point and I agree with your point with the caveat that at certain points in time it may be difficult legally for Eddie to do an interview about Sears and its  because of different transactions/developments that he may be working on at a given time.

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South Coast Plaza buys back its Sears store for $187m

 

http://www.ocregister.com/2017/07/23/south-coast-plaza-reportedly-buys-its-sears-store/

 

How many more of these sales does Sears have in them?

 

More than anyone gives them credit for. SRG validated, not contradicted, the composition and value of the remaining portfolio of real estate. I've never seen situations as one-sided as AMZN on the bull side or SHLD on the bear side.

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South Coast Plaza buys back its Sears store for $187m

 

http://www.ocregister.com/2017/07/23/south-coast-plaza-reportedly-buys-its-sears-store/

 

How many more of these sales does Sears have in them?

 

More than anyone gives them credit for. SRG validated, not contradicted, the composition and value of the remaining portfolio of real estate. I've never seen situations as one-sided as AMZN on the bull side or SHLD on the bear side.

 

I'm just getting interested in this story now, so my first question is: Why does Lampert not simply close all the unprofitable stores today? Why go through 4 years of losing $1B+ a year.

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The properties are owned by Seritage and were sold to GGP.

 

Whoops thanks!

 

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Big changes for SHLD this quarter.

 

Adjusted EBITDA improved by $124 Million. 

 

http://searsholdings.com/press-releases/pr/2056

 

Is this the inflection point?

 

Hardly seems like it. Adjusted EBITDA is pretty meaningless. Cash burn is actually getting worse: free cash flow for the first half of 2017 was negative $1.2B (vs negative $700M in 1H 2016).

 

And now Eddie is selling the crown jewels. The bulls thought South Coast Plaza was worth far more than what they got for it.

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I'm in SSRAP @ben and @chad but thinking of selling as it's moved up a bit

 

Weird situation as always.

 

The SRAC bonds (underlying) are now strongly bid at $49+ across the whole spectrum ($500k face each on the bid).

 

And SSRAP trades for $41.  Maybe that discount is right... but not sure.

 

The burn is frustrating for sure... and I agree the story gets worse as it continues...

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Aren't they cutting $1.5 billion in costs this year? And still they manage to burn all that cash..wtf

 

I'm in SSRAP @ben and @chad but thinking of selling as it's moved up a bit

 

With high fixed costs you have to cut opex just to tread water as sales move down. Plus store closure costs are accelerating as they ramp up lease exits. Plus interest rates of each new debt issue go up. Plus the pension payments are relatively fixed. And on and on and on. They only have so much RE they can sell. I wonder if the HQ in Hoffman Estates will be next. Then you could do a sale leaseback and exclude the rent from adjusted EBITDA like they do with SRG :)

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I'm in SSRAP @ben and @chad but thinking of selling as it's moved up a bit

 

Weird situation as always.

 

The SRAC bonds (underlying) are now strongly bid at $49+ across the whole spectrum ($500k face each on the bid).

 

And SSRAP trades for $41.  Maybe that discount is right... but not sure.

 

The burn is frustrating for sure... and I agree the story gets worse as it continues...

 

I suppose its because if they go belly up then SSRAP is immediately liquidated, whereas SRAC stands a chance. But that doesn't matter imo because I don't think any of those bonds would end up with much if anything in a bankruptcy.

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