In their 10k, the valuation is just above $8 billion, so most likely at least the land has appreciated above that level.. Most likely their real estate and building value is going to be around $10 billion. This does not include fixtures and equipment.
Place the operating company on top of that, subtract out the debt and then you get the breakup/selling price.
My guess is that LJ and the board did not make the announcement to simply boost the stock price by 11-20%. They clearly have an idea as to what the value of the company is on the market, and my guess is that it will come out to be $27-$31 a share. Time will tell. Wonder if they still are presenting at the GS conference on 9/9?
You are dead wrong. ABS owns some of the buildings and almost none of the land.
I worked in the central office and knew some of the Real Estate guys. Their job was to find optimal locations to build or rent. They never bought the land.
Look at the annual report.
They have listed on the balance sheet 10 billion for Property, Plant, and equipment.
that is about 4 million a store. 4 million would not cover the land. The store, the equipment and infrastructure, but not the land.
If they owned the land in Florida, California, and Illinois, each parcel would be worth close to 4 million by itself. These stores are are contained, with parking on approximately 2 acres. Most are in shopping centers, they do not own the land.
Walgreens owns the land.
Also, last thing: Look at Yahoo key statistics. ABS has a book value of $15.00 a share. that is probably inflated.
Why pay $20.00 in a failing company with junk bond status dropping sales and margins when book value is $15.00?
They will be lucky to get $18.00
All you saw on Friday was short covering. A lot of shorts are all over this and rightfully so. Now watch them come back and investors start to sell. $15.00 by X-Mas.
Don't try to confuse these dopes with facts Abbie.
Most of these idiot pumpers think the balance sheet is a womens gymnsatics event at the Olympics.
Look to see the same desperate buyout rumors flogged here as on the Fleming, Winn Dixie and Kmart boards. All of course were as false, baseless and utterly sanity-free as they will be here.
The potential suitors - all of whom will be alleged to be paying top dollar for the stock of a sucking hind tit company that has Dr. Kevorkian on hold on line 1 - and promising to give all employees big raises and double all existing Union contract pay and benefits to boot- will no doubt include:
Carrefour Wal-Mart Tesco Microsoft Bill Gates Michael Dell Warren Buffett Kroger Safeway Starbucks The Olson Twins The Hilton family George Bush Sr. GAP Winn Dixie Michael Jackson George Soros Yucaipa The Sultan of Brunei Eddie Lampert Edie Brickell Michael Jordan Mark Cuban Jennifer Lopez Oprah Elvis Ted Turner Ted Bundy The Roman Catholic Church The Reverend Sun Yung Moon Kid Rock