NEW YORK Oct 21 Although Sears Holdings Corp
(SHLD.O) has taken its knocks, its worth may lay in hedge fund
honcho Edward Lampert's ability to turn it around over time and
the value of its real estate, according to an article in
In its Oct. 22 issue, Barron's said the retailer's real
estate has considerable value that is not reflected in the
company's share price.
The stock closed at $130.89 on Friday.
Combined with the value of brands such as Kenmore and
Craftsman, the company could have a liquidation value of more
than $300 a share, Barron's said.
Lampert, who cobbled the company together from Sears and
once-bankrupt Kmart, and his hedge fund ESL Investments,
controls or has the support of shareholders that have about 60
percent of the stock. He has been working to turn around the
company. He has changed the product mixture to feature
higher-margin merchandise and is beginning to push big ticket
items into free-standing Kmart box locations, Barron's said.
However, the fallout from the housing market could crimp
consumer spending and stall the turnaround, Barron's said.
Yet, the company's real estate may deliver the ultimate
returns to investors.
Bill Ackman, whose hedge fund Pershing Square recently
bought 5 million shares, has calculated that the Sears' U.S.
retail real estate at just $8.5 billion of its total $20
billion enterprise value, Barron's said.