Have owned Sears several times since Eddie has taken over and it has generally been a very pleasant experience. Back in now because of Eddie's last letter, Berkowitz's presentation, the Barron's article and the rights offering this week.
I figure this rights thing will be very good for us...yes we put out some cash but since Eddie owns 62% and has pledged to buy any not subscribed it must be a good deal for him....dud. And the money goes to Sears so we get new stock and more value in our Sears stock. Yes Sears does lose the subsidiary but almost certainly it is not creating much market value within the sprawl which is the current Sears.
Seems to me with the selling of stores, the rights offering, the Land's End up for sale and the probably spin off of Sears Canada means that Eddie has finally had it. Can you imagine the breakfast conversation with his wife - day after day after day: "Eddie you still got that piece of crap Sears?" "All my friends say it is just dreadful." Etc, etc, etc...and can you imagine his investors in his hedge fund? They also have to be putting pressure on him. So we now have the big asset reshuffle and somehow more value comes out. I am in for that....good luck to all....
and as the Barron's article mentioned this could all be setting up a HUGE short squeeze. I had the luck to be during that last dash from 50-80+....didn't get all of it but a very good chunk...now that is double sweet...making money and making it from the shorts.