So, Sears (SHLD) released its 10-Q today and there is nothing really that was not disclosed yesterday save 1 item.
On page 7, there is a $23 million “investment in equity securities” classified as “Level 1 inputs—unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occur with sufficient frequency and volume to provide ongoing pricing information. “
from the annual report, as of Feb. 2 “We purchased 5.3 million shares of common stock of Restoration Hardware, Inc. (“Restoration”), a specialty retailer of hardware, bathware, furniture, lighting, textiles, accessories and gifts during 2007. Our investment of $30 million represents an ownership interest of 13.67% of Restoration’s total outstanding shares.”
Based on Restoration’s (RSTO) share price on 5/2, the date of the valuation on the 10-Q Sear’s still holds its Restoration stake.
It also appears that Sears may end up being able to take their buyout proposal directly to shareholders and the current buyout is being contested in court
Disclosure (“none” means no position):Long SHLD, None
