which should take him say 3 months to do, then we may hear that he has been able to sell the kenmore/diehard. End of next month we will find out what a horror show the 4th quarter was.
At that point when we know that the rest of the real estate/brands have gone and what the burn run rate looks like we will be able to deduce how much time there is left. Would also be a good time to buy put options I would imagine.
Carl Icahn- yeah, all the financial websites, the people who analyze businesses for a living, the people who other people listen to for investment advise-- yeah, they are all wrong but a company who is going bankrupt and who does not disclose what the real estate is worth should be trusted? If they have so much "valuable" real estate how come no banks will lend them money and Eddie now has to lend money from his hedge fund? If the real estate was worth 10B or even 5B why would a bank not loan money with this so called "valuable" real estate as collateral? Seems like it would be a no brainer. The reason is that most of the valuable real estate has already been sold, the rest has already been used to back other debt and what is left over is in bad malls or locations or has asbestos problems that no one wants to touch.
$10 billion- ha ha what are some of you smoking... As per their filings there are roughly 400 store left - 200 are in encumbered with any loans. Those 200 are the crappy left overs - worth a billion or less...
They might have been worth 10B 10 years ago. but that was before 2008, the glut of retail space due to other retail going out of business, the continual decline of malls and the massive debt that SHC has.
Everyone who would buy any of the real estate know SHC is hurting for cash so why would they even pay anywhere near market value for any real estate. Why not wait until BK or until SHC is so desperate for cash, like right now, to low ball and get any properties for a steal?
The real estate is worth 10bil do your homework all the bs articles on sa are worthless the street.com and motley fool and all other bs sites look at bb NAV values he has millions of dollars in appraisals done
how much are 160 empty abandoned stores worth? Yes approximately 200 are unencumbered. you can buy a Kmart 150,000 sq feet in size on 16 acres for $300,000
I am not saying the real estate is worthless and I agree we don't know exactly what it's worth. But the auditors make a good faith effort to put a real value on it, plus the sale to Seritage put an upper limit on the value. Theres been some good analytics showing most (not all) of the great high value real estate already went to SRG. Add in the encumbered stores and you have less than 200 stores to sell now. Math will tell you the most optimistic scenario is about an extra billion in unrealized value, but most likely, book value is more or less accurate. And it's depreciating at the speed of light with all of the other stores closing - no on needs big boxes anymore, and when you have to move real estate quickly, you always get very low bids. Dead man walking.
We don't know how much real estate value the company has because, despite being a publicly traded company, they won't release figures. It is curious though that whenever ANYONE on this forum even mentions the possibility of value in the real estate or the reinsurance subsidiary (which to remind everyone is chartered in Bermuda) all of Eddie's henchmen immediately get on here denouncing them. They have always talked about how the remaining properties are completely worthless, yet even after that, we now have a one billion dollar loan that is guaranteed by these "worthless" properties. And that is just some of the ones they own. There are still hundreds more left. Nobody except Eddie and his goons know how much they are worth, but clearly there is still SOME value left.
Rocket, is that you?? 10 billion in real estate? wow, that's a lot. Nice fact free statement too btw.
Is there a link to this? Eddie has been trying to sell more real estate for quite some time with little success.