It’s an old story – when will Edward S. Lampert, genius hedge fund manager, finally figure out how to create value out of the cobbled together pile of assets known as Sears Holdings (SHLD)? Recently, Lampert has gone from lackadaisical to peripatetic, spinning off Orchard Supply (OSH), Sears Hometown And Outlets (SHOS), and part of Sears Canada (SCC.TO). In addition, the company has closed stores, and shed real estate.
Amidst all this activity, where is the value to be found? According to Michael B. Lewis of The Motley Fool, the answer is in Sears Hometown and Outlets. This was recently spun off in a rights offering and the stock has moved down significantly from $37, where Lewis wrote about it in early November, to under $30 today. We don’t know what Lewis thinks now, but we have started to hear from others that they feel this is the most promising piece of Lampert’s empire. We hope to have a post from one of them next week, making his case.
Disclosure: The author owns shares of OSH