Sears Canada Inc SRSCQ

fairholme fund returns 25 percent for 2016 - he likes sears

[extremerisk]

This fund is second biggest shareholder after Lampert with 20 million shares and reported adding 600000 in December sedar report. Berkowitz the founder has been buying all the way down from spin off price of $10.50 a short two years ago. I prefer to align with berkowitz. Bought more today. Trading really sporadic but can pick up shares in small quantities. Than all of a sudden a seller appears. If berkowitz continues there will be little left. In his year end letter he correctly says that tangible assets has served him well over many years but most believe sears will be exception to the rule so trades at a ridicously low valuation. In us they spun off stores to seritage and have already released 35 percent of space in 18 months. Same will occur in Canada with Sears 2 model where they cut space in half. Sublease remaining half and increase sales per square foot in the process. I plan to continue to add.