Thread regarding Sears layoffs

Why does Eddie remind me of Clark Griswold in the National Lampoon's Vegas Vacation? He keeps betting away, getting nowhere in the process. It would have done him good to BK maybe five years ago. Only instead of a casino, this is about selling SHLD piecemeal. How is he going to get rich off of 300-some-odd stores (in a market that will soon be supplying more commercial real estate than the demand, seeing how retail is imploding). Same thing with Seritage...rents for commercial retail will not be so high with retailers closing stores.

How will he realize a ROI on SHLD's IP when the bills are coming due for things like the pension? The Craftsman sale will be mostly going towards pension obligations. Who knows how much Kenmore/DieHard will bring in, or for that matter, the auto centers and the service company. If anything else gets sold before BK, SHLD will burn it up in no time in operating costs. If it sticks around up to BK, naturally, it will go for pennies on the dollar (heck, the IP will not get SHLDs asking price even before bankruptcy...most stronger companies work this to their advantage by paying a pittance for an asset that a weak company would rather have sold, just to have some cash flow).

Eddie may be in line as a creditor come BK and he will get his stores but how much will they be worth? I'm betting not much. There's a whole lot of negative to go with the soon-to-be flooded commercial retail RE market, like old asbestos-ridden stores attached to declining/dying/dead malls (take your pick) or in an area where merchant activity largely packed up and left a decade ago. If those stores sit too long the tax bills and upkeep will catch up. Cities may start fining for empty and/or derelict buildings.

Something to think about. I don't think Eddie will be getting quite the payday everyone is thinking of.

I really, truly believe Eddie is in way over his head and it will turn out that he will have lost a LOT of money. I'm betting that by the end, he will have invested more than what he gets back, even after the ring-fenced assets are transferred to him during BK.

Shld does not have an equity interest in srg

Perhaps they have a dividend in mind. SHLD does own a small equity position in Seritage. They could divest themselves of that position by distributing those SRG shares to their shareholders as a dividend.

Eddie may be responsible for destroying Sears/KMart, but he's a financial genius. If you think he doesn't know exactly what he's doing, you're crazy.

Eddie reminds me of a gambler who's lost it all. Rather than walking away he doubles down and loses more money than he has. This idea he's like Scrooge mcduck with mansions full of gold coins is laughable. When Sears goes bankrupt he will have as much money as a d---beat thrown out of casino because he has no more money to gamble

The more stocks that are purchased the higher the stock prices will become. This keeps the stock prices up and in turn helps with several issues including public perception. I think it is a move to keep things going. As for how long they will keep it up or how long it will work; only time will tell.

Eddie has many different pots of money. Sometimes you have to move money to one pot to gain in another. Or sometimes you have to lose some money in order to gain somewhere else. Just because buying more shares may benefit Eddie does not mean it would benefit the average Joe.

Eddie does have some jobs to offer... He needs some bag holders for his stock.

Bruce has purchased more shares than Eddie in recent days. He has been buying at a rapid pace from the 1st day of announced earnings. It seems to coincide with the same day the Craftsman deal was closed.

So do everyone to kid themselves and say this isn't happening. It really is happening.

He isn't buying shares because he believes in the transformations.

Isn't there a law that if a company has to lay off more than 200 people they have to give 60 days notice?

Lambert has to keep the stock from falling below $5.00, so it stays on the stock market.

Sears has an agreement with the Pension Benefit Guaranty Corporation that Sears owes $2.1 BILLION

to fund the pension and he has to have the company stay solvent until July 2017. When Sears goes bankrupt he can get out of paying the rest of the pension debt.

https://www.pbgc.gov/news/press/releases/pr17-03.html

Exactly SHC shares. Since the price will go down, he will lose $$$ right?

I don't think he needs the additional control the shares buy him. I guess to try to artificially prop the stock up in some way.

He bought shld shares.

Because SRG is worth more than SHLD. Lose on one side an gain on the other.

I read that. Can someone explain to me why? I don't understand the stock market enough to figure it out.