Friday, October 31, 2014

"Sears Has a Deal to Offer Its Shareholders" $SHLD

Good discussion of the new rights offering:

"Sears needs money. It is at the point where it can only raise that money on fairly embarrassing terms. The most natural provider of money on embarrassing terms is its CEO, but it's a little awkward to take money from your CEO on embarrassing terms, and anyway he drives a hard bargain. The only way to make that look OK is by offering the same embarrassing terms to everyone. And if not all of them are able to accept, because they're not natural holders of bonds and warrants, then so much the better. The CEO will step up. There's your deal."


Stagflationary Mark said...

Sears better hurry up!

A Brick and Mortar 2014 4th Quarter Retail Sales Holiday Prediction

So here's my Halloween prediction. Get out those vampire fangs, because it's going to suck to be a brick and mortar retailer relying on Christmas season joy. But what's new? Sigh.

eah said...

The best thing about that article is that it's absolutely hilarious.

eah said...


Nothing new to speak of re that "German" shoe company whose (Chinese) CEO left with all their dough and then called collect from a phone booth in China. But rest assured "...the company remains capable of acting and will continue its efforts to clarify the current situation."

Now back to SHLD.