SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Classic TA Workplace
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Shread who wrote (74368)5/23/2003 10:49:00 AM
From: reaper  Read Replies (3) of 209892
 
Paul -- on KMart.

let me ammend my prior reply. most of the shares are now owned by ESL (Edward Lampert) and Third Avenue Value. these are REALLY smart guys and deep value players. and Lampert knows retail. they surely bought the KMart debt at a huge discount with the intention of getting common in the re-organization. that makes them more likely to be "holders" rather than sellers. that said, some leg work is likely required to figure out what their cost basis is.

also note that later this summer unpaid vendors are due to get something like 25mm shares. THESE folks are highly unlikely to hold onto their stock (if you are an apparrel manufacturer and KMart owes you a bunch of money, and you get stock instead of cash, what are you going to do; sell the stock for what you can get for it).

i've invested in a lot of re-organized companies over the course of my life (and they have provided some of my best returns). i have found that you're best off waiting a year or so after the company emerges from bankruptcy before you make a decision. this gives you time to observe several quarters of financial results, and the stocks rarely go anywhere due to the afore-mentioned over-hang of former creditors who get stock and just want to sell out at any price.

Cheers
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News