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Albertsons, LLC Message Board

  • cxcharles cxcharles Sep 4, 2005 12:44 PM Flag

    Real Estate

    ABS has 2318 stores. ABS owns them.

    Land and building only

    1 million per unit (maybe less than you 3000 sq foot home)

    Total price = 2.3 billion

    It may worth more.

    lets say 5 million per unit.

    TOTAL PRICE = 11.6 billion

    WOW plus its business 40 bliion per year.

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    • Bull Shit. They do NOT own 2300 stores with the land under them. Many stores are in strip malls that are owned by a developer and ABS leases them. Total value of those store. $ 000.00.

      • 2 Replies to skeeterbrooke
      • Do you know how Eddie Lampert became a billionare in a two and half year?

        Not long ago, they have been bashing K-Mart everyday. Untill it went BK, untill its stock price downto OOOOO.

        I heard on a call-in program, one shareholder said helplessly "at least they should give me some store coupon".

        They all have been trashed and betrayed by these dirty big guys.

        Then Eddie Lampert stepped in with a couple million dollars. He closed some stores, sold some to Wal-Mart. Stock price went to $90, Eddie was a multi-millionare then.

        He had the money, I belive it is from those poor K shareholders(before BK), to buy Sears. Stock price went to $160 after merger. Check SHLD

        Eddie is billionare now.

        This is the story about Eddie, a WS trader.

      • ABS owns about 40% of their buildings/property.

        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?

        Bet there will be no news until end of year.

    • 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.

      • 2 Replies to absisdeadinthewater
      • Much of the organic growth in the mid 1990's was actually on owned land.

        They sold a lot of land off in sale-leaseback transactions in the late 1990's (pre-ASC).

      • 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:

        Bill Gates
        Michael Dell
        Warren Buffett
        The Olson Twins
        The Hilton family
        George Bush Sr.
        Winn Dixie
        Michael Jackson
        George Soros
        The Sultan of Brunei
        Eddie Lampert
        Edie Brickell
        Michael Jordan
        Mark Cuban
        Jennifer Lopez
        Ted Turner
        Ted Bundy
        The Roman Catholic Church
        The Reverend Sun Yung Moon
        Kid Rock