OTCPK:HBAYF - Post by User
Comment by
wheeloffortuneon Mar 08, 2019 6:35pm
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Post# 29463953
RE:RE:RE:RE:Thoughts
RE:RE:RE:RE:ThoughtsThere's also DEBT on the books. When they bought SAKS for $2.9B five years ago, they assumed $2B in debt plus had to get another $0.9B for the difference. The property value will be recorded on the books plus inventory and GOODWILL for the difference. Money doesn't just appear out of thin air. The book value is NET of DEBT! ASSETS = LIABILITIES (DEBT) + SHAREHOLDER'S EQUITY. Thus, P/BV=1.261 is correct.
You can't just say the "value of Saks 5th Ave store is greater than market cap of HBC" without allocating the debt from the purchase of this store. The property depreciates 4%/yr, but you also have to constantly repair and renovate the stores which gets added to the books. I disagree that a SAKS store is worth more than book value as there isn't a big market for enormous brick and mortar retail locations anymore. If I'm wrong, WHY DID THE SP FALL ANOTHER 8 CENTS TO $7.53 TODAY?? Shorters only account for a quarter of the total trades.
nolipstick wrote:
BTW, if book value/share is important to you, you have to adjust last reported values (Q3) by closing of L&T -Weworks deal and sale of 50% of real estate in Europe. Did you know that the value of Saks 5th Ave store is greater than market cap of HBC? LOL