I realize the bigger story here is Berkowitz from Fairholme getting fed up with the utter horseshit going on at Lampert’s den of iniquity, also known as Sears-Kmart. Eddie Lampert is the worst merchant in the history of retail, single handedly destroying two gigantic retail chains at the same time.
Lampert embodies mediocrity. As a point in fact, he should sell some ESL Mediocrity branded perfume inside of his shit-box chains of gorilla raping stores.
Eddie deserves to be eating out from a garbage can, instead of enjoying the lap of luxury, for what he did to Sears.
Enter Fairholme.
Do you mean to tell me Berkowitz has nothing better to do with his time, or client assets, than to plow it back into SHLD, as it circles the toilet bowl?
Representatives of Fairholme “will be in contact” with Sears management, board and other significant shareholders regarding its views on the company’s long-term prospects, according to the filing. Those communications “may include proposing or considering” actions to be taken at Sears.
Fairholme has been a Sears investor for more than a decade, having first reported acquiring shares of the Hoffman Estates, Illinois-based retailer during the third quarter of 2005. Based on the most recent data available, Sears ranks as Fairholme’s largest stock holding, comprising about 20 percent of the firm’s reported equity investments.
Quarterly Loss
Until last year, Fairholme reported its Sears stake as a passive investment taken in the ordinary course of business. In September 2014, when Fairholme began to report the stake on the SEC form that active investors are required to use, the money manager reserved the right to communicate with Sears management and the board, but didn’t say it had any plans to do so. That hadn’t changed until now.
Berkowitz began buying more Sears stock on Dec. 3, the same day that the department-store chain announced a $454 million third-quarter loss and its shares fell 6.9 percent. That day, Fairholme bought 418,500 shares at $18.90 each, according to filings.
Since then, the money-management firm has bought Sears stock on almost every day of December, including the purchase of 390,100 shares since Christmas Eve, according to a regulatory filing Tuesday. Fairholme funds and accounts have bought about 1.45 million shares in the retailer this month, though the total has been partly offset by sales at other accounts the Miami-based firm oversees.
As of Dec. 29, Fairholme and Berkowitz controlled 27.8 million shares, the equivalent of a 26 percent stake.
Apparently not.
So, Berkowitz has purchased SHLD “every single day” in December. His press release reads like a veiled threat to the catamites at ESL: “we’ll be in contact”, changing from a passive stake to active.
Both of these out of touch circus clowns are going to lose their mustaches on this stock.
Good luck.
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