Sears has the potential for strong financial performance once it addresses a few critical concerns including, among others, the high volume of short-selling activity in its shares,” Memento Chief Executive Officer Alessandro Mauceri said in the letter.
You heard it here first. Sears problem isn't poor management, disastrously low cash levels, lack of product, a shrinking customer base, nervous vendors, or anything real. It is short-sellers. Yep, that's it.
You lost me at.....
"Sears has the potential for strong financial performance"
Guessing 400 million a year in pension liability , minus the next two years with the last real estate sell off.
Was this a call to privatize. Or a way for shareholder to create a bounce in the stock to unload theirs?
You go private if you have a profitable high cash flow business slow growth business that will not attract investors because investors pay for growth. Greeting cards is a prime example. Certainly not a growing business, but it kicks off a lot of cash. SHLD consumes cash and has almost no prospect for growth. Add the high debt that an owner would have to take responsibility for, and it is most certainly not a good candidate for going private.
Most of the retailers that have gone bankrupt so far this year were high performers that went private. Owners loaded them up with debt, took the profits, and ran.
Bug difference here...no profits, already heavily loaded with debt.
Also this shareholder has no pull—they own 2% of the company, worth less than $10M on a good day these days. You could write your own letter too.
What ignoramus doesn't know when to use there vs. their (or they're for that matter)? It all relates to the dumbing down of America and Sears employees specifically, as a previous poster once wrote. Don't they teach English in schools these days or are most of the posters of the esl variety????
Is this a way to pump the stock for a temporarily time as its being mentioned.
Their isnt any benefit with how bad Sears is doing to go private. A company goes public to grow because they have potential, but for Sears having no stock they don't even build enough revenue on their own so whats the point of going private if they did? Eddie will stop lending $$$ as soon as he knows their isnt any more collateral left.
Here's a companies that went private:
The Limited
RadioShack
Gander Mountain
Vitamin World
Toys R Us
Gymboree
Payless
From what I read, a company that goes from public to private needs two things to make sure it goes well:
Set company doesn't have copious amounts of debt
Set company has a nice stream of Free Cash Flow (FCF) coming in
Gee golly gosh, guys!!! Seems Sears has the exact OPPOSITE of both, don't they?!
"......... once it addresses a few critical concerns"....BWAHAHAHAHAHAHAHAHAHAHAHAHA!!!!
Not to mention their inability to get merchandise or financing.....and we won't discuss the crappy, filthy stores that have not been update in over 20 years. Since 2004 this has ALWAYS been a real estate play that is in the final phase. Enjoy!
LMAO, the guy who sent the letter has been trading on this since last year. Check out his article from Jan 2017.
https://seekingalpha.com/article/4036445-sears-mighty-eddie-unleash-short-squeeze
Sears is not going to be taken private. He's just trying to create a short squeeze to dump his position at a higher price.
Complete BS and not well understood by the media.
Repost- this is two posts down.
Going private is great.
Dumping the shorts would be great.
What insurance company does sears own? Referenced in the letter