GREY:SRSCQ - Post by User
Comment by
extremeriskon Jan 06, 2017 6:35am
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Post# 25674144
RE:RE:RE:Warren Buffett once said find an iconic company
RE:RE:RE:Warren Buffett once said find an iconic companyNeed to shrink number of stores and increase sales per square foot. Sears Canada has been doing this for last decade. What I found interesting is the sears home stores were picked up by brick/leons. Goes to show one man's refuse is another's jewel!! Issue here now is sears Canada was almost sold to a distressed retail hedge fund at $17 a share in 2014. At the start of 2017 it trades for $2. This shows how deep the value is. There major expense is not high rent. For example They are still paying $1 a sq foot at Eaton Centre for 400,000 sq feet for another 60 years. Their major cost is labour which they can cut whenever they like. I expect more cuts to labour and more shrinkage in square feet. Trading at 7 cents on dollar of revenue makes it great buy here. Also trading below current cash value of $4 a share and they have no debt.