But he doesn't. Think about that. Market cap is currently around $120 million and he owns 49% of the company already. It wouldn't be much for him to buy out the other 51%. But he doesn't want to.
Even when the company was worth more, he could have still taken it private. He had the money.
What does that tell you???
He would not take it private because then he would be on the hook for the Pension.... whereas if it goes BK then Pension Guarantee will take over. Similar to what happens when a small community bank goes under, no investor will buy it, let FDIC assume the obligations.
Don't cry for fast Eddie assuming his 56 mill ( + or - ) shrs of stock have an avg. purchase price of $20 and SHLD hits the BK lottery the stock is zero and he can use the 1.12 billion loss to offset the gains he will make from stripping sears real estate assets buying Kenmore is an exercise in futility just wait for the BK if he wants it that bad, but...Kenmore is an obsolete brand
But I guess most of us figured out this already.
I read 2 articles on Crain's Chicago Business website by Joe Cahill because I wanted to learn more about this idea. I admit that I don't know a lot about investing so I look stuff up.
His take in 2017 was that Eddie Lampert could put his real money where his mouth is if he truly believes that SHC has such a bright future and take the company private for an amount of $$$ that is affordable if you're Eddie Lampert.
His take today in 2018 is that Eddie has given up on SHC which is why Lampert wants to buy assets (Kenmore) rather than invest more money. YMMV
Taking the company private literally makes no sense. That’s why. It’s not profitable and will never be profitable. Everyone knows sears will go bankrupt eventually but no one knows exactly when. Eddie is currently one of the biggest creditors so his funds will gain some assets back after the bankruptcy. He’s trying to soften the blow to his own bank accounts rather than letting those go up in flames too.
Taking the company private would literally do the opposite for a company that has a limited future. That’s like putting an explosive in your home that you can’t remove just so you could MAYBE make $100 short term.
If it were that easy and profitable for him he would have done it. Eddie is not a dummy when it comes to money for his own pockets.
It tells you that there is more debt than is being reported. It also tells you that the real estate is not worth as much as they report. It also tells you that the retail part of SHC is not what Eddie wants. It also tells you that you know nothing of which you speak.
As the previous posters had said even if he takes it private the debt goes along (which is 4 to 5 billion dollars) lol he doesnt care at all he aint taking nothing private.
Well ESL had money to loan @ 11% interest so there's that. If he cared about the company he would have acted differently .
You are not considering the $4 - $5 Billion in debt he would assume.
It would cost him over $4 billion to take it private! That is not chump change.
I thought so ...