Eddie Lampert's Next Move? Hearsay, Speculation and Chatter Compete for Airspace

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

HEARD ON THE STREET: Edward Lampert Is in the Hunt

• Summary: There is speculation that Sears Holding's Corp. (SHLD) Chairman Eddie Lampert (pictured) is trying to invest in other businesses now that Sears appears to be on sound footing. Among companies that have been mentioned as possible takeover targets for Sears are Home Depot (HD) and The Gap (GPS). Both companies declined to comment, saying they don't comment on market "chatter." There is also hearsay that Lampert may attempt to enter the auto industry. He sold about a million shares of General Motors (GM) during the first quarter, and his hedge fund ESL owned about 30% of AutoZone Inc. (AZO) at the end of the second quarter, and approximately 24% of AutoNation Inc. (AN). Lampert's moves are hard to track -- he is one of a few individuals who has SEC permission allowing him to delay filing financial statements, meaning all Wall Street can do is wait and guess what Lampert's next move may be.
• Comment on related stocks/ETFs: Speculation about Eddie Lampert's next move is nothing new. A month ago, William Trent speculated that Lampert's Sears Holding may be in the hunt for another retailer, BJ's Wholesale (BJ). Who is Eddie Lampert, the man? The Stalwart paints a picture and it's not pretty, saying (among other things): "Everyone hailed the man a genius for unlocking hidden value, declaring Lampert a latter-day Warren Buffett. Like Buffet he even writes folksy letters to his shareholders. Only Lampert doesn't have Buffett's self-effacing style or his modesty... So while Eddie Lampert wants to sound like Buffett, he actually sounds more like the Enron guys." Ouch! Also, see Wikipedia on Eddie Lampert, especially the external links section for a wealth of articles on the man.

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Comments

[Paul Meisel:]

This quote of Lampert's, from Stalwart's earlier post:

Although all the attention Sears Holdings is receiving is, in some fashion, flattering, I would caution you to approach much of what is written and said about us with an appropriate amount of healthy skepticism. This is particularly so with respect to the loudest views, the most widely held views, or the so-called “expert‿ views. For many commentators, analysts, and reporters, their success is dependent on the excitement or controversy generated by their articles – not on the accuracy of their writing or of their predictions.

.... seems to generally apply to a lot of market situations -- Oil, Housing, Autos.....

Not that the guy doesn't seem a little weird, but that may not keep him from being right on his investments.

2006 Sep 19 09:27 AM