Seeking Alpha

Sears Holdings (SHLD) says it expects to haul in $346.5M from the separation of Sears Hometown...

Sears Holdings (SHLD) says it expects to haul in $346.5M from the separation of Sears Hometown and Outlet Stores after the rights offering came in fully subscribed. Another $100M will be paid to Sears Holdings in the form of a special cash dividend prior to the separation. The new company, to trade on the Nasdaq under the symbol SHOS, is set to operate 944 Sears Hometown Stores, 96 Sears Hardware Stores, and 76 Sears Home Appliance Showrooms.
Comments (10)
  • Mike1022
    , contributor
    Comment (1) | Send Message
     
    Any idea when SHOS starts trading?
    9 Oct 2012, 07:22 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (3812) | Send Message
     
    This is going to start the massive buying for Sears stock in general and the massive short squeeze.
    9 Oct 2012, 08:42 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (3812) | Send Message
     
    Wait to the numbers from the Sears Canada spin off come into play.

     

    The baby Berkshire is blooming.
    9 Oct 2012, 02:53 PM Reply Like
  • HOMETOWN OWNER
    , contributor
    Comments (4) | Send Message
     
    everybody wins but the owners of the sears hometown stores who in general are losing money with their investment each month.

     

    the question might be, how can sears publicly offer stock in stores they don't own or have any vested, monetary investment other than the inventory. many owners are scratching their heads wishing to get out of current contracts with shc however the 'new company' management says no dice.

     

    sounds simply like a ploy to raise cash for the parent company as lambert prepares to spin off/sell off sears trade names (craftsman, kenmore, etc)
    9 Oct 2012, 05:18 PM Reply Like
  • HOMETOWN OWNER
    , contributor
    Comments (4) | Send Message
     
    it is certainly interesting that sears can publicly trade stores or store's assets they don't own. in a 'hometown store' the only investment from sears is the inventory; the building location, fixtures, etc are all the expense of the individual store owner.

     

    also, it is interesting that although a new company has been formed and is publicly traded that sears parent company will not let the owners under contract with the old company part company nor is the parent company offering new contracts. wow! many owners would love to get out of their current contracts as the commissions to the stores, 'perks', etc. have all been drastically reduced or eliminated resulting in a losing proposition for the owners.

     

    could it be that after the influx of cash to the parent company creating a new company they really have NO investment in Lambert will proceed to spin/sell off the sears branded...kenmore, craftsman, etc.?

     

    i think we are witnessing a venture where the moral compass has been eliminated.
    9 Oct 2012, 05:25 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (3812) | Send Message
     
    I know a location in North New Jersey where the owner is doing very well and is very happy, in fact he is in the process of another location.

     

    These stores are like franchises to Sears Holdings where Sears gets royalties or percentages through sales of their brands.

     

    A lot of individuals were saying Lampert did not know what he was doing......it appears to me he knows what he is doing and his business plans are being executed perfectly,in fact other retailers are coping him.
    10 Oct 2012, 02:13 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (3812) | Send Message
     
    The stores were once owned by Sears and now spun off.

     

    That's how business is - learn how spin offs work..
    10 Oct 2012, 02:15 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (3812) | Send Message
     
    He owns over 20 million shares of Sears Holdings common stock personally - he has to do was best and legal for the common shareholders, which are his employees and investors like me.
    10 Oct 2012, 02:17 AM Reply Like
  • HOMETOWN OWNER
    , contributor
    Comments (4) | Send Message
     
    a couple responses..........
    CORRECTION: sears does NOT get royalties or percentages. they PAY percentages (or commissions) to the hometown owners--and the commissions have been decreased dramatically

     

    CORRECTION: the stores were NEVER owned by sears and therefore could not be spun off.....please get your information correct before sending in erroneous information
    12 Oct 2012, 01:11 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (3812) | Send Message
     
    You are simply wrong. They just received over $300 million dollars from the spin off.
    13 Oct 2012, 03:46 PM Reply Like
DJIA (DIA) S&P 500 (SPY)