Why Did Sears CEO Edward Lampert Buy $100 Million Of Seritage Property – CWEB.com
Seritage Growth Properties is a publicly traded REIT primarily engaged in releasing and redeveloping its 253 property portfolio into first class multi-tenanted shopping centers.
Pursuant to a master lease, 230 wholly-owned properties are leased to Sears Holdings and are operated under either the Sears or Kmart brand.
The master lease provides Seritage with rights to recapture certain space from Sears Holdings at each property.
In addition, Seritage has 50% interests in 28 additional properties through joint venture investments with General Growth Properties (9 properties), Simon Property Group (10 properties), and Macerich (9 properties) that are also master leased to Sears Holdings.
As of December 31, 2016, the Company’s portfolio included approximately 42.2 million square feet of gross leasable area (GLA), consisting of 235 owned properties totaling over 36.8 million square feet of GLA across 49 states and Puerto Rico, and interests in 31 joint venture properties totaling over 5.4 million square feet of GLA across 17 states.
As of December 31, 2016, it included over 3,000 acres of land or approximately 13 acres per site for its owned properties. Its properties are primarily located in areas, including in California, Florida and Texas.
Sears Holdings could use these thousands of locations as marketing locations to convert a portion of these millions of customers to a new model.
Institutions own 58.21% of Sears Holdings Corporation (SHLD)’s shares. The total value of these holdings, in millions, is $152.
Among active positions in the latest quarter, 56 holders increased their positions by a total of 4.81 million shares.
Among new and sold out positions, 22 holders initiated new positions by a total of 2.36 million shares.
This nets out to an increase of 965200 shares and is a bullish sign for (NASDAQ:SHLD)
Sears last year achieved its goal of cutting $1.25 billion in costs.
This week the major Owner “Edward Lampert” was granted 159,575 Shares (Tran Code – A) — Insider Forms which is really good sign for the upcoming ER and also the value of the company confidence.
Sears is trading relatively low compare to its competitors.
Sears (NASDAQ:SHLD) competitors are:
Overstock (NASDAQ:OSTK) which trades $60
Dillards (NYSE:DDS) which trades $88
Nordstrom (NYSE:JWN) which trades $52
Macys (NYSE:M) which trades $30
Groupon (NASDAQ:GRPN) which trades around $5
Walmart (NYSE:WMT) which trades around $88
Etsy (NASDAQ:ETSY) which trades around $25
Gap (NYSE:GPS) which trades around $34
BABA (NYSE:BABA) which trades around $180
Amazon ( NASDAQ:AMZN) which trades around $1500
In any event (NASDAQ:SHLD) has turned corners around and become profitable again and this is best time to scoop this stock at a such a great price.
The CEO Edward Lampert feels very confident and there is a reason why he invested in (NYSE:SRG).
We predict that this coming week Sears (NASDAQ:SHLD ) ER will be positive and also cash flow positive which is a very good sign for a major turnaround.
CWEB Analyst’s reiterates a Buy Rating for (NASDAQ:SHLD) and a Price Target of $10 within 6 months.
If Sears continues the same growth we believe that the stock can reach a value of $30-$40 in the next quarterly earnings.
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