The sale of AutoNation (AN +1.8%) shares by Eddie Lampert's ESL Partners appears to be tied to client redemptions, according to a Bloomberg report. Turmoil at Sears Holdings (SHLD -0.7%) could be part of the anxiety. (video) [View news story]
The two leases sold really do make the point..it has about two thousand stores to go...
"There are less ways to cheat on a balance sheet than an income statement," says Bruce Berkowitz, explaining why he focuses on the one rather than the other (and why he'll probably never be a buyer of auto stocks). In this great 35-minute chat from late last year, he again makes his case for AIG and BAC - "it's the 90s all over again" - and SHLD - selling for the liquidation value of its merchandise; the brands and the real estate are free. [View news story]
Yea but following a precipitous decline the prior year.
Danger Zone 4/23/2013: Sears Holdings [View article]
I'd like a little more insight into the the end game here.
The method that seems to be being used by Sears owners is to extract the valuable fruity bits wrapped up in its non guarantor vehicles from rest of the cake.
Is that possible? ..wont leaving all the doughy burdened bits to collapse in a worthless pile be a problem?
The insurance sector is broadly higher following the MetLife dividend hike. Worth remembering - Met (MET) is a special case, until recently under the Fed's regulatory thumb due to its banking operations (now divested). PRU +2.8%, HIG +2.4%. Maybe most interesting is AIG +4.1% as investors ponder the capital return possibilities. [View news story]
Surely anything they can do to keep the stock unattractive prior to a share buyback makes sense.
2 Near-Term Reasons To Avoid JPMorgan Chase At Present Levels [View article]
I think Dimon failed to describe the personal weakness that led him to miss the signs of a dealer gone astray.
He should have said something like this...
"I was hubristic. Its a common trait that afflicts people with huge self confidence and has undermined my performance. In order to manage this weakness I've relinquished one of the two roles I hold, and asked the bank to appoint someone to keep my feet on the ground."
One thing this article did was try to challenge the love thats been pouring out for AIG. Thats a good thing for AIG appraisers. Arguably it is akin to Buffett looking for a bear to challenge BRK at its own shareholders meeting.
Speaking of which, Buffett's observation about the danger of insurance company's wasting legacy bond portfolios seems relevant to AIG. What should it be pushing into?
EXCO Resources - Wilbur Ross, Howard Marks All In On This Beaten-Up Stock [View article]
Yea Its a tricky one. The same worry about large shareholders buying out the company at a price that smaller shareholders wouldn't want affects Sears shares too.
What governs the potential for these things?
If they know the business will decline, for some time, they can surely wait it out? Make their move when the price is peanuts, assuming their long term valuation of the business is suitably comforting.
Does Bruce Berkowitz's Sears Math Add Up? Do Your Own Diligence [View article]
Given the downside of a closed anchor blighting a mall, I'd assume - in a soft retailing real estate market - Mall owners bend over backwards to help Sears tick over, and exit neatly in a positive way probably with substantial changes to covenants?
The sale of AutoNation (AN +1.8%) shares by Eddie Lampert's ESL Partners appears to be tied to client redemptions, according to a Bloomberg report. Turmoil at Sears Holdings (SHLD -0.7%) could be part of the anxiety. (video) [View news story]
Danger Zone 4/23/2013: Sears Holdings [View article]
Which guarantor / guarantor vehicle are the pension liabilities in?
Isn't there a large slug of debt up for renewal in a few years time?What terms will be secured if the good bits are somehow ring-fenced?
"There are less ways to cheat on a balance sheet than an income statement," says Bruce Berkowitz, explaining why he focuses on the one rather than the other (and why he'll probably never be a buyer of auto stocks). In this great 35-minute chat from late last year, he again makes his case for AIG and BAC - "it's the 90s all over again" - and SHLD - selling for the liquidation value of its merchandise; the brands and the real estate are free. [View news story]
Danger Zone 4/23/2013: Sears Holdings [View article]
The method that seems to be being used by Sears owners is to extract the valuable fruity bits wrapped up in its non guarantor vehicles from rest of the cake.
Is that possible? ..wont leaving all the doughy burdened bits to collapse in a worthless pile be a problem?
The insurance sector is broadly higher following the MetLife dividend hike. Worth remembering - Met (MET) is a special case, until recently under the Fed's regulatory thumb due to its banking operations (now divested). PRU +2.8%, HIG +2.4%. Maybe most interesting is AIG +4.1% as investors ponder the capital return possibilities. [View news story]
Dont Dividends conflict with share buybacks?
We Believe TOTAL S.A. Is The Total Package [View article]
"TOTAL has a history of providing shareholder value through dividends and share repurchases"
The shares have declined, during the last ten years, and as far I can see on google finance the dividend has been roughly static.
So where was the value of those buybacks?
Haven't they have been throwing good money after bad?
2 Near-Term Reasons To Avoid JPMorgan Chase At Present Levels [View article]
He should have said something like this...
"I was hubristic. Its a common trait that afflicts people with huge self confidence and has undermined my performance. In order to manage this weakness I've relinquished one of the two roles I hold, and asked the bank to appoint someone to keep my feet on the ground."
AIG Is Expensive At Any Price [View article]
Speaking of which, Buffett's observation about the danger of insurance company's wasting legacy bond portfolios seems relevant to AIG. What should it be pushing into?
EXCO Resources - Wilbur Ross, Howard Marks All In On This Beaten-Up Stock [View article]
What governs the potential for these things?
If they know the business will decline, for some time, they can surely wait it out? Make their move when the price is peanuts, assuming their long term valuation of the business is suitably comforting.
Does Bruce Berkowitz's Sears Math Add Up? Do Your Own Diligence [View article]