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...
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Shareholders of Sears Holdings(SHLD) have been once again reminded that entropy is inexorably increasing, at least in their brokerage accounts. Less than a year ago they had only Sears, but since then, they have received in three separate transactions, Orchard Supply Hardware common (OSH) and preferred (OSHSP), warrants to buy Sears Hometown and Outlets...
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We’ve written before about the puzzle of Orchard Supply Hardware Preferred(OSHSP). This preferred issue was spun off from Sears Holdings(SHLD) together with Orchard Supply Common(OSH). While we’re still not sure how to value them, thanks to Laurie Frederiksen, COO of bivio.com for pointing out some tricky tax treatment for their distribution. It seems that...
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A recent report on Sears Holdings(SHLD) by Morningstar analyst Paul Swinand lowers their fair value estimate for Sears by $10 per share due to the Orchard Supply(OSH) spinoff. Given the distribution ratio of 1 share of Orchard Supply for approximately every 22 of Sears, and Sears’ 80% ownership in Orchard Supply, this would seem...
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