Tag Archives: Orchard Supply Hardware

Struggling Sears Suggests That Auto Centers May Be Next Spinoff, Aims To Exit Canada

Every Spring in Chicago gives birth to new hope that this year will be different.  It is rarely long, however, before hopes for this year are dashed and talk shifts to a focus on rebuilding for next year.  We are not talking about the Cubs, but rather about iconic Chicago retailer Sears Holdings(SHLD).  Once again, Sears posted a… Read More »

Barron’s Warns On Heavily Leveraged Lands’ End

Another week, another heavily leveraged spin from Eddie Lampert. Just last week, Sears Holdings(SHLD) shareholders received shiny new shares in Lands’ End(LE).  But Sears received a bigger gift- $500 million in cash paid as tribute by the new company. Lands’ End, like many Sears and Kmart customers, borrowed heavily to give this gift and now will be constrained… Read More »

Orchard Supply Stock Plunges After Management Says Equity Expected To Be Worthless

We (and many others) had been puzzled by the strange strength in Orchard Supply Hardware(OSH) equity following its bankruptcy filing earlier this week.  The bubble burst today when the company issued an announcement warning that equity was expected to be a complete loss. Orchard’s management has noticed high trading volume in Orchard’s Class A Common Stock and Series… Read More »

Orchard Supply Taken Out To The Woodshed- Will Sears Holdings Reap What It Sowed?

Eighteen months after it was spun off from Sears Holdings(SHLD), Orchard Supply Hardware(OSH) announced that it had filed for Chapter 11 bankruptcy protection and had reached an agreement for Lowe’s Companies (LOW) to acquire most of its assets.  We had been bullish on Orchard at the time of the spin. We were wrong. In its press release the company… Read More »

Sears Hometown And Outlets – The Brighter Side Of Sears?

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). … Read More »

Sears Holdings Centrifuge Spins North To Canada

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 (SHOS), and now, Sears… Read More »

Orchard Supply Hardware Struggles To Show Sales Growth, Sells Off More Real Estate

It’s been a few quarters since Orchard Supply Hardware(OSH) was spun off from Sears Holdings(SHLD).  The stock continues to trade at similar levels to where we felt it was a reasonable buy soon after its spinoff. Yesterday, the company issued a brief press release which contained three critical pieces of information. Comparable Store Sales were up 0.9% –… Read More »

Local Paper Interviews Marc Baker, CEO of Orchard Supply Hardware

The Mercury News interviewed Marc Baker, CEO of Orchard Supply Hardware(OSH), which was recently spun off from Sears Holdings(SHLD). There’s nothing really new here, but it’s always interesting to see how a CEO views and spins his company. Some highlights: Q Where does Orchard fall in terms of the hardware store landscape? A We think of ourselves as… Read More »

Tricky Tax Treatment For Orchard Supply Preferred Shares

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 unlike most spinoffs which… Read More »

Motley Fool’s Austin Smith Likes Orchard Supply

In a short clip, without giving much detail, Austin Smith mentions he likes the prospects of Orchard Supply(OSH), recently spun off of Sears Holdings(SHLD).  Smith likes management, feels that they’re not competing with Home Depot(HD) and Lowes(LOW) and that Sears may go bankrupt.  Like many Fool articles, there’s not a lot of content here, and it seems largely… Read More »

Orchard Supply Hardware Stock, Spun Off From Sears, In Tail Spin- Time To Buy

It’s been a pretty bad first week for Orchard Supply(OSH).  Since beginning trading on Tuesday  following its spin off from Sears Holdings(SHLD) at $25 with a quick rise to $60, the stock has moved almost straight down to its current price of $15.62.  Yesterday, the company released some preliminary numbers which show some encouraging trends, but still couldn’t… Read More »

Orchard Supply Hardware Common And Preferred Begin Trading Today

Orchard Supply Hardware Common(OSH) and preferred(OSHSP) began trading this morning, following their spinoff from Sears Holdings(SHLD). The newly independent company issued a press release to mark the occasion:         Orchard Supply Hardware Stores Corporation, a specialty retailer serving homeowners with repair, maintenance and improvement needs, announced that its spin-off from Sears Holdings Corporation was completed at… Read More »

Sears Holdings Completes Orchard Supply Hardware Spinoff

Sears Holdings(SHLD) issued a press release this morning announcing the completion of the Orchard Supply Hardware(OSH) spinoff.  Sears Holdings Corporation (“Holdings,” “we” or “our”)  today announced that it has completed its previously announced spin-off of its interest in Orchard Supply Hardware Stores Corporation (“Orchard”).  Orchard is now independent from Holdings and its Class A Common Stock will begin… Read More »

Is Orchard Supply Worth $10 per Sears Share? Morningstar Seems To Think So

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 to imply a per… Read More »

Should You Bite The Preferred Apple From Orchard?

Whopper Investments asks the question we’ve been puzzling over: What is the purpose of the preferred stock being issued to Sears(SHLD) shareholders as part of the Orchard Supply(OSH) spinoff? We’ve previously written in general terms about the spinoff here, but haven’t much discussed the prospects of the securities that will be distributed.  Sears has its own issues which… Read More »