Quote:
Originally Posted by murraypaul
The really pessimistic view would be that what they are really after is the real estate/store location, and will accelerate the process of selling anything other than books in bookstores.
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Possible, though I can think of some issues with trying to do that. Stores in places like malls don't normally own the land they sit on. The mall owner does, and the retailers lease space. They'll certainly look to close under performing stores, leaving the mall trying to find a replacement. What they do in locations they decide to retain will be an interesting question.
But ultimately, I don't think the hedge fund is interested in any long term strategy or ownership. They want to buy low and sell high, and their efforts will be short term things aimed at producing a high to sell at. The question is whether whatever management is installed as part of the process will be able to maintain the higher stock price. The hedge fund won't care at they point. They got theirs and cashed out, which is what hedge funds do.
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Dennis