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Overcoming Ouch - Edward Lampert Second Quarter Slash
Posted by: Sally Jones (IP Logged)
Date: August 16, 2013 04:49PM

Investor, entrepreneurial savant and retail visionary, Edward Lampert, CEO of Sears Holdings Corporation and founder of ESL Investments, has seen a rare down cycle lately. His portfolio’s total value is down around a billion dollars since reports from May 2013.

After fighting the slippery slopes of re-imagineering Sears and its spin-offs, including the troubled Orchard Supply Hardware (OSH, OSHWQ, OSHSQ), Lampert drastically cut his companies in the second quarter of 2013 but still holds 31.82% of Sears Holdings Corporation (SHLD) and 25.05% of Sears Hometown & Outlet Stores Inc. (SHOS), 2.23% of Gap Inc. (GPS) and 16.75% of AutoNation (AN).

As for Orchard Supply’s fate: This week Lowe’s Companies Inc. (LOW), up 58% over 12 months, reported progress in its plans to acquire the majority of assets of the Sears spin-off Orchard Supply Hardware, including 72 stores, for approximately $205 million in cash, plus the assumption of payables owed to nearly all of Orchard’s supplier partners, subject to Bankruptcy Court approval. The acquisition is expected to be completed by the end of August.

After selling and trimming, Lampert’s company ESL Investments now has a super-concentrated portfolio of 4 stocks with a value of $2.8 billion (down from $4.02 billion reported on May 15) and a quarter-over-quarter turnover of 0%. Edward Lampert’s portfolio shows the following reductions and sells for the second quarter of 2013.



Sears Hometown & Outlet Inc. (SHOS): Reduced

Up 32% over 12 months, Sears Hometown & Outlet has a market cap of $856 million and trades with a P/E of 28.10. The current share price is $45.29.

Guru Action: As of June 30, 2013, Edward Lampert reduced his position by 36.32%, selling 3,300,167 shares at an average price of $45.53 for a loss of 12.5%.

He has averaged a gain of 24% on 9,086,583 shares bought at an average price of $32.21 per share. On shares sold, he averaged a loss of 12% on 3,300,167 shares sold at an average price of $45.53 per share.

His current shares stand at 5,786,416.

GAP Inc. (GPS): Reduced

Up 21% over 12 months, Gap Inc. has a market cap of $20.34 billion and trades with a P/E of 17.00. The current share price is $43.49.

Guru Action: As of June 30, 2013, Edward Lampert reduced his position by 24.54%, selling 3,555,508 shares at an average price of $39.37 for a gain of 10.9%.

He has averaged a gain of113% on 36,286,240 shares bought at an average price of $20.53 per share. On shares sold, he averaged a gain of 42% on 25,923,101 shares sold at an average price of $30.70 per share.

His current shares stand at 10,363,139.




Genworth Financial Inc. (GNW): Sold Out


Up 142% over 12 months, Genworth Financial has a market cap of $6.26 billion and trades with a P/E of 14.10. The current share price is $12.68.

Guru Action: As of June 30, 2013, Edward Lampert sold out his holding, selling 8,382,562 shares at an average price of $10.41 for a gain of 21.8%.




iStar Financial Inc. (SFI): Sold Out


Up 52% over 12 months, iStar Financial has a market cap of $940.1 million and trades with a P/B of 0.70. The current share price is $11.01.

Guru Action: As of June 30, 2013, Edward Lampert sold out his holding, selling 862,803 shares at an average price of $11.50 for a loss of 4.3%. Lampert had an excellent history of gains:




Capital One Financial Corp. (COF): Sold Out


Up 18% over 12 months, Capital One Financial Corp. has a market cap of $39.36 billion and trades with a P/E of 9.50. The current share price is $67.24.

Guru Action: As of June 30, 2013, Edward Lampert sold out his holding, selling 8,484 shares at an average price of $58.92 for a gain of 14.5%. Lampert had another excellent history of gains:




Orchard Supply Hardware Inc. (OSH, OSHWQ, OSHSQ): Reduced


Down 98% over 12 month, Orchard Supply has a market cap of $1.8 million. The current share price is $0.26.

Guru Action: After nine reductions in the second quarter, as of June 30, 2013, Edward Lampert reduced his position by 27.14%. He sold in the price range of $1.76. The current share price is $0.26, with a change from average down 85%.

Down from more than a million shares as of April 1, 2013, Lampert’s current OSH shares stand at 158,399 on his trading history, but with the upcoming acquisition by Lowe’s and changes in the stock tickers to OSHWQ and OSHSQ, the most current portfolio update shows his OSH holding is at zero shares.


AutoNation Inc. (AN): Reduced


Up 15% over 12 months, AutoNation Inc. has a market cap of $5.58 billion and trades with a P/E of 16.80. The current share price is $46.00.

Guru Action: As of June 30, 2013, Edward Lampert reduced his position by 35.544%, selling 11,175,659 shares at an average price of $44.63 for a gain of 5.2%. He has averaged a gain of 283% on 13,097,719 shares at an average price of $12.26 per share. On shares sold, he averaged a gain of 35% on 59,453,152 shares sold at an average price of $34.65 per share.

After his recent AN trades of August 12, 2013 and August 14, 2013, reducing his position by 1.69% and 0.66%, respectively, Lampert’s current shares stand at 30,707,497.

Another remarkable history:



Guru Eddie Lampert has personal assets of $3.1 billion as of March 31, 2013.



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Guru Discussed: Edward Lampert: Current Portfolio, Stock Picks
Stocks Discussed: SHOS, GPS, GNW, SFI, COF, OSH, OSHWQ, OSHSQ, AN, SHLD, LOW,
Rate this post:

Rating: 3.3/5 (6 votes)



Re Overcoming Ouch - Edward Lampert Second Quarter Slash
Posted by: duncan (IP Logged)
Date: August 16, 2013 05:43PM

wonder what he is raising cash for?



Guru Discussed: Edward Lampert: Current Portfolio, Stock Picks
Stocks Discussed: SHOS, GPS, GNW, SFI, COF, OSH, OSHWQ, OSHSQ, AN, SHLD, LOW,
Rate this post:

Rating: 3.0/5 (1 vote)





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