market folly

There has been a short-squeeze of sorts going on in shares of Sears Holdings (SHLD) over the past month as SHLD has rocketed from $38 to $62.  At least part of the reason?  The real estate long case making the rounds via a presentation by Baker Street Capital Management.

This stock has been a battleground between hedge fund shorts and value investor longs for quite some time.  Shorts point to a deteriorating retail business, while longs point to the value in Sears' real estate.

Hedge funds like Lone Pine Capital have disclosed put option positions in 13F filings as of Q2 indicating their bearish stance on the company.  On the other hand, Bruce Berkowitz has been long SHLD precisely under the real estate thesis.

Not to mention, you have a hedge fund manager at the top of the SHLD ownership chain via Eddie Lampert as well.

With a smaller float, SHLD shares have rocketed higher lately so let's take a look at what all the fuss is about.


Baker Street Capital's Presentation on Sears Holdings (SHLD):
Valuing the Real Estate

Embedded below is Baker Street Capital's presentation: "The Case For Sears Holdings (SHLD): With Our Proprietary Property-by-Property Real Estate Appraisal."