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Holly LaFon
Holly LaFon
Articles (6682) 

Eddie Lampert: Still a Great Investor in Spite of Sears

Comments

AlbertaSunwapta
AlbertaSunwapta - 4 years ago    Report SPAM
Seems like a decent mostly factual article to me, yet 5 votes garnered only a 2-star rating. What am I missing?
adamcz
Adamcz - 4 years ago    Report SPAM
I'm curious to learn more about Lampert's track record. Did he really compound a 29% annual return over the long term by investing in IBM and American Express? Either he danced in and out of those stocks masterfully, or he used a lot of leverage, right?
AlbertaSunwapta
AlbertaSunwapta - 4 years ago    Report SPAM
Yes. While rising AUMs show investor confidence or great fund marketing, it's still a rather meaningless number by itself.
jonmonsea
Jonmonsea premium member - 4 years ago
Not to beat a dead horse, but (and I own SHLD) isn't 90% of Sears Canada and Sears inventory (marked down 90%) and Kmart real estate (marked down 50%) not worth more than $3 billion, brands aside? If someone could address the real estate valuation, that would be great. Sears Canada exists and is very liquid and has fallen a lot this year, as well. Basically, a sum of the parts argument, but can someone say why these assets do not add up to at least 30% more than current share price, even when drastically discounted?
Greg Speicher
Greg Speicher - 4 years ago    Report SPAM
Here is a very broad look at the range of value for Sear's real estate put together by John Mihaljevic at The Manual of Ideas. http://www.manualofideas.com/files/shld_moi_20081223.pdf

Horizon (Murray Stahl) has done some good work on Sears which I believe they own. Check the commentary at their website for details. They argue that the clearing price for Sear's 90,000,000 square feet of real estate may be worth materially more than the current market value of the company_[www.hamincny.com]. This is out of my balliwick so I do not have an informed opinion other than to observe that there appears to be a lot of vacant big box real estate sitting idle which can not be good for pricing.
jonmonsea
Jonmonsea premium member - 4 years ago
Interesting, thank you.
sclarksons
Sclarksons premium member - 4 years ago
interesting that that Manual of ideas list only includes owned real estate, when history has shown that transferring leases has resulted in large realized gains.

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