sclarksons

Ackman's Sears Sale: An Expression of His Activism

Artificial boost?

the market cap is less than half of the inventory at cost.

thank god I don't borrow to buy shares, as the market is absolutely irrational on this deal.

he could have a fire sale of all the inventory, selling it all at cost,
ruining christmas for all other retaliers,

and bid $150 per share for the 60 million shares outstanding with the proceeds.

or he might have already locked up the outstanding shares with call options, creating a VW scenario where shareholders name their prices. I've got limit orders in to sell at $1000 just in case.

It's hard to be long this stock, but the downside at a 4 billion market cap does not exist.