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Presentation on Sears real estate

September 10, 2013 Leave a comment Go to comments

This is the most comprehensive presentation on Sears’ real estate valuation that I’ve seen.  The real estate for Sears alone is worth lots more than the current valuation for the entire company. The media has been misguiding investors by saying the real estate value won’t be realized. Infact the company has been working on ways to create value for shareholders for quite some time now.

I bought Sears a few weeks back. The shares have been on a tear this week. I will update my holdings this week, as there are quite a few changes.

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Categories: Updates
  1. RA
    September 15, 2013 at 12:07 am

    Would love to know about your portfolio updates. Are you still long CHK? What made you buy Sears? It was argued for a while that the real estate alone had higher value than the stock price reflected … Was there a catalyst that you saw in the near term that took the stock higher recently?

    • paras
      September 15, 2013 at 9:12 pm

      I will give the update on portfolio soon.

      I’m still long CHK. It is my second biggest holding, after BAC warrants. I expect to hold CHK for a few yrs. I think there is quite a bit of upside from its liquids production and if NatGas price rebounds in 2014 then there is lot more upside.

      As for Sears, I’ve been watching it for years. I started looking at it when Berkowitz came out and mentioned the RE was worth over $100/share. My problem was, what Pabrai said, it hard to remove value from a company the size of Sears. Although it was only recently that I realized that Lampert has done a great amount of job in starting to realize the value of the RE. I think the value is slowly getting realized and shareholders will benefit from it. I’m eagerly waiting for Sears to spin off some of its real estate assets. That will be a huge upside for shareholders. Just take a look at the recent update to the Seritage website. They provide lots more detail on the assets that they are marketing. What is interesting is that the company does not mention Sears anywhere on its website. It is as if it is not part of Sears.

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