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Friday, 04/27/2018 12:05:12 PM

Friday, April 27, 2018 12:05:12 PM

Post# of 39884
SHLD

The market really makes no sense at times. Recently a good chunk of debt from SHLD was converted to equity lowering BK risk: https://www.sec.gov/Archives/edgar/data/923727/000119312518094368/d570533dsc13da.htm

Now 900 million of discounted unsecured debt and 300 mill of second lien debt getting extinguished in the sale of parts and service plus Kenmore division. Remaining debt of residual enterprise more than covered by inventory on hand leaving stores and real estate as a debt free enterprise which can be slowly monetized in a controlled fashion. Residual real estate value today (that would not include future operating losses and a future value) are over $70/share

One would think an event so directly beneficial to the common equity would result in a massive short squeeze and revaluation of the entire metric of value here. Perhaps not to $70 but at least $25. At the very least I would have expected a much higher trading volume. Front page news of WSJ too. I can only think investor fatigue, the toxic nature of the Sears name and mistrust of management is keeping even experienced investors away.
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