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Buffett Still A Buyer, Will Seritage Shares Go Higher?

It’s quite clear that Buffett owns shares in Seritage for value creation, and if Sears is able to hang on another three of four years, Seritage investors may be quite happy.

Summary

  • Sources have written a Sears bankruptcy would likely happen in late 2017.
  • If Sears were to file bankruptcy, Seritage's current signed third-party income is not sufficient to cover its interest expense.
  • There are shrinking options for Sears, and Seritage’s balance sheet makes it difficult to execute on the value creation blueprint.
  • The odds are not good, and the upcoming holiday season will serve as a barometer as to whether Sears makes it through the first half of 2018.