Seeking Alpha

Do Whole Foods and Sears have a lot to talk about?

  • Whole Foods Market (WFM) and Sears Holdings (SHLD) could be set to strike some deals, reasons Todd Sullivan.
  • He notes Whole Foods nabbed stores recently in North Carolina, Florida, and Albany with leases for space formerly occupied by Sears.
  • Whole Foods Market doesn't make a bad tenant for Sears Holdings' real estate arm. The unit also has some space available up in Canada if the grocery store operator wants more stores up north.
Comments (14)
  • Bishop Research and Analytics
    , contributor
    Comments (87) | Send Message
     
    This is a big part of the Sears CRE strategy that was mentioned in this Seeking Alpha article: http://stks.co/rHBc

     

    In addition to taking over unoccupied closed stores, Whole Foods is also subleasing split-pads within operating Sears properties with separate entrances and signage on the front facade.

     

    As funny as it may sound, Whole Foods also became a co-tenant anchor with Kmart a few years ago in at least one strip mall in L.A. It doesn't seem like their customer base would overlap too much, which might explain the symbiotic connection. Not much risk of cannibalization with the bonus of new customer demographics.
    18 Dec 2013, 05:15 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1557) | Send Message
     
    Bishop, this is a positive development what %age of Sears's real estate can Whole Foods realistically take over? I doubt it's too high..
    18 Dec 2013, 10:41 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8154) | Send Message
     
    I really feel bad for the SHLD shorts...they are playing with fire for sure.
    18 Dec 2013, 07:48 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1557) | Send Message
     
    Only as much as longs who have held for 3+ years have been watching just about everything else in the market zoom by while their investment has been down and stalled.
    18 Dec 2013, 10:38 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1557) | Send Message
     
    Shares down another 1.5% after hours as of 7:59pm - it looks like shorts in the 60's did great in this last dip.
    18 Dec 2013, 10:42 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8154) | Send Message
     
    Actually, no.

     

    SHLD has been trading in a range for years.

     

    The only way to have lost money on Sears has been to buy it in the $60s and then do nothing to your position.

     

    As I've written elsewhere SHLD is an options trading dream stock.
    20 Dec 2013, 03:14 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8154) | Send Message
     
    But the short interest would indicate that most shorts have no idea when to cover.

     

    I suspect they'll learn soon enough.
    20 Dec 2013, 03:15 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1557) | Send Message
     
    You've kept saying it's an options trading dream, yet you've never actually shared an actual strategy except don't buy puts (which I suggested when it was in the 60's a couple weeks ago to make things even more ironic).
    20 Dec 2013, 03:21 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1557) | Send Message
     
    "I suspect they'll learn soon enough."

     

    How many years you been saying this? I suspect it's at least 6. While I still think it's dumb to be short on a stock with the float mechanics that SHLD has, I'm sure the guys who have been short since $150+ are likely holding onto theirs and potentially adding to it every time this thing pops to 60, drops back to 40, back up to 60, etc.
    20 Dec 2013, 03:22 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8154) | Send Message
     
    Wrong.

     

    From March 3, 2013:

     

    ::::If you want to be short SHLD I recommend that you buy 3 ATM puts for every 2 ITM calls you sell.

     

    You can do this on margin.

     

    You can also borrow shares from your broker. The cost is astronomical but it is worth it since SHLD is plummeting soon.

     

    ...right?
    ::::
    20 Dec 2013, 06:56 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8154) | Send Message
     
    So you pick the three or four people that just happen to put on a short position at that very high price years ago?

     

    That's your example.

     

    Not the mass of people who jumped on the bankruptcy bandwagon when it dipped below $30?

     

    ...and now that Eddie is finally starting to generate cash from RE sales and redevelopment you think NOW is a good time to be short?

     

    Really?

     

    I'm sorry but the short train has left the station.

     

    I STRONGLY advise shorts to cover here.
    20 Dec 2013, 07:06 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1557) | Send Message
     
    I wouldn't advise anyone to ever be short a stock with such a low float in the first place. That was obviously not the case 6 years ago.
    20 Dec 2013, 09:37 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1557) | Send Message
     
    Alright touche, I was wrong, you did make a recommendation haha.
    20 Dec 2013, 09:37 PM Reply Like
  • Jbgoose
    , contributor
    Comments (1011) | Send Message
     
    SHLD burns so many, but always tempting to play the huge ranges. And isn't SHLD a real estate firm these days, so why does it matter so much that it is WFM. a firm changing (tweaking) it's model to include town hall like atmosphere's, bars, community HUB's? A sign of stretching for growth or a sign they see an opportunity for growth? Are Google or Apple stores inside the WFM next (jokingly, they don't yet have pharmacies, they might consider compounding bars) Hey not a bad idea....
    18 Dec 2013, 09:07 PM Reply Like
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