1/30/2011

Real estate recorded on the books significantly below fair market value

Since I promised to post a continuous flow of value based ideas this will be my choice tonight.
SYMS: Syms Corp

Large real estate holdings purchased over 15 years ago. The NYC Wall Street location was purchased in the 1950’s

Some of the older owned locations are;

New York City, New York
Westbury, Long Island
Buffalo, New York
Paramus, New Jersey
Secaucus, New Jersey
Cherry Hill, New Jersey
Fairfield, Connecticut
King of Prussia, Pennsylvania
Fort Lauderdale, Florida
Miami, Florida
Tampa, Florida
Addison, Illinois
Atlanta, Georgia
Southfield, Michigan
Houston, Texas

The company is poorly run and the recent purchase of Filene's Basement for $64 million 18 months ago when it was in bankruptcy is not helping the balance sheet as they struggle to make a profit.

My SYMS Seeking Alpha post back on February 2010 is worth a closer look


Insider ownership 54.39%

The only positive is the real estate and historically low EV to sales that in the right hands could survive and achieve a higher price.

52 change -21%,
EV/Rev = .4082

YOY Quarterly revenue growth -10.70%

Per Share:

Price 6.12
EV = 13.39
NTA = 11.97
Sales 32.81
Virtually no shorts

SGA/Revenue = 25.90%

I will try and finish the post tomorrow but the current 88 million market capitalization is well below the value of the owned real estate. The NYC property alone is worth more than the current market value of the entire company. Several years ago SYMS spent 3.1 million to purchase air rights on the NYC property. Hmmm, this was not purchased to expand the dying retail clothing establishment. It seems they have more valuable plans for that location and the purchased air rights.


After a request to list ideas posted on the blog, I just began to put that list together but it will take  some time. I believe the list may be useful to look at past posts and find new ideas quickly with the original rational.




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