Oct 31, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
104,800 Indirect Purchase at $35.34 per share. 3,703,632
Oct 30, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
212,200 Indirect Purchase at $37 per share. 7,851,400
Oct 29, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
59,800 Indirect Sale at $36.54 - $36.61 per share. 2,187,0002
Oct 29, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
161,900 Indirect Purchase at $37.04 per share. 5,996,776
Oct 28, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
100,000 Indirect Purchase at $37.78 per share. 3,778,000
Oct 27, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
69,700 Indirect Purchase at $38.66 per share. 2,694,602
Oct 23, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
111,100 Indirect Purchase at $35.37 - $36 per share. 3,965,0002
Oct 22, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
21,600 Indirect Purchase at $34.74 per share. 750,384
Oct 21, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
126,400 Indirect Purchase at $34.81 per share. 4,399,984
Oct 20, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
144,500 Indirect Purchase at $32.29 - $34.92 per share. 4,856,0002
Comments
59,800 Indirect Sale at $36.54 - $36.61 per share. 2,187,0002
Oct 13, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
50,000 Indirect Purchase at $25.29 - $25.31 per share. 1,265,0002
Oct 10, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
5,900 Indirect Sale at $25.31 per share. 149,329
Oct 6, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
7,700 Indirect Purchase at $29.11 per share. 224,147
Oct 2, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
49,200 Indirect Purchase at $26.37 per share. 1,297,404
Sep 25, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
15,900 Indirect Sale at $26.05 per share. 414,195
Sep 24, 2014 BERKOWITZ BRUCE R
Beneficial Owner (10% or more)
10,500 Indirect Sale at $26.40 per share.
As for Sears, I hate (or don't understand), the real estate thesis. To me, real estate (especially near malls) is becoming less valuable.
"The rub with Sears remains that the retail operations are difficult for the average investor to separate from the valuation of the assets that go far beyond the real estate holdings. Investor after investor proclaims the company worthless due to a lack of profits from the retail operation, but the company has a vast array of assets worth billions upon billions that are hidden."
and,
"Simon Property owns or has an interest in 324 retail properties comprising 241 million square feet. The stock is valued at an incredible $46 billion, further providing reason why Bruce Berkowitz and the Fairholme Fund invested so heavily in Sears. Note that Sears has roughly 250 million square feet of real estate. In addition, Simon Property has over $22 billion in debt while Sears has the real estate assets virtually unencumbered."
finally,
"Lampert never had a sole focus to turn around the stores; instead he hoped to develop an online presence, which now ranks only behind Amazon.com and Wal-Mart, while limiting the capital improvements on stores since the plan was to sublease and redevelop the assets anyway."
Sears Holdings' Incredible Hidden Value
If you read this article, here's Seritage's website:
seritage.com/portfolios.aspx
The economist turns and coolly replies, "Can't be. If there was a $20 bill on the ground, somebody would have already picked it up."
From...The Twenty Dollar Bill.
There is interest - the Chou Funds, Kinetics funds, a few hedge funds - but nothing as sizable as the investment from Berkowitz. Additionally, I believe the common element of the noteworthy investors is that they've ridden it down from higher or much higher levels.
I get that Sears has a great deal of square footage, but I guess it comes down to 1:) how much desire is there for that much retail space? 2:) Is that retail space comparable in any way to the quality of Simon Property's retail space? My guess is that the answers are "not enough" and (at least on average, as I think there's going to be a lot of K-Marts in the middle of nowhere that have zero interest and maybe some of the worst Sears locations, too) "no".
As for my thoughts on zero interest in the worst Sears and K-Mart locations, examples of abandoned or deserted Sears stores:
http://www.businessinsider.com/photos-of-deserted-sears-stores-2014-10?op=1
Can the space be re-developed as something non-retail? I'd guess in the case of freestanding locations yes, malls probably not.
http://online.wsj.com/articles/sears-considering-forming-reit-to-boost-liquidity-1415362718
Same store sales down again but not quite as bad as expected. Says looking to push towards a smaller, "asset light, member-centric" company. Sees 3Q EBITDA neg $275-325M. Sears will continue operating in the stores in the spin-off. Sears up around 17.5% pre-market.
8:00 EST - Looking at the main behind the curtain at Sears (SHLD) and Belus Capital says, "It's apparent the operations remain in shambles and the need to raise cash to survive 2015 (with an intact share price) is a pressing matter." That as the company's 3Q net loss will be some $600M, versus $497M a year earlier, despite flat same-store sales. "This, in our opinion, reflects Sears' obsession with adhering to a 'membership' model where margin is given away but no annual dues are collected" like the wholesale-club operators. "
Sears could learn a lot from Costco's business model, both online and retail. I for one would like to see a company that fills the voids between Home Depot (Lowes), Ikea, and other home building (home furnishing) companies. Sears could, in my mind, create a roof (retail stores and online website) for consumer products that center around the home, from newly built to rehab to ongoing maintenance.
Hell, Sears once sold Kit homes that most of us today would be proud to call home. Their Kenmore and Craftman lines reminds me of Kirkland Signature. Even home financing could reside under the Sears "roof".
Homes need designers, architects, and skilled labor. Sears could easily provide a high end low cost solution for the masses.
Now we just need to help college graduates get jobs that pays well enough to afford a home.
If things don't change soon shareholder may have to get used to wearing "Searsucker" all year long.
Note: I hope this thread had something to do with today's positive move!
But a lot of altitude to make up given its decline the last 5 years...
Regards,
Ted
Regard,
Ted
Recently, the top brass at Sears had decided to outsource the manufacturing of Craftsman hand tools to places like China and Taiwan. The sockets, ratchets, wrenches and other hand tools you buy are now being made overseas. The quality is nowhere near as good as the USA made stuff.
Every time I hear that I think it's usually more like "the top plastic".
Creation of a REIT would amount to “just buying them some more time,” said Ken Perkins, president of Retail Metrics. “Almost all of what they have done over the past several years is financial engineering and not addressing the core business problems.”
EXACTLY. People complained about IBM's financial engineering - what Eddie Lampert has done to Sears over the last several years is the biggest example of the worst aspects of financial engineering.
I do think the name Sears might be a negative at this stage. Perhaps a name change would be beneficial.