Valinor Management & Lee Cooperman Update dELiA's Stakes ~ market folly

Tuesday, June 24, 2014

Valinor Management & Lee Cooperman Update dELiA's Stakes

David Gallo's hedge fund firm Valinor Management has filed an amended 13D and form 4 with the SEC regarding their stake in dELiA's (DLIA).  Per the filing, Valinor now owns 27.9% of the company with aggregate exposure to 24.8 million shares.

This marks an increase of over 18.2 million shares of common stock since the end of the first quarter.  Valinor automatically converted their Secured Convertible Notes into shares of Series B Convertible Preferred Stock.  The filing was made due to activity on June 17th.

The 13D notes that Valinor has nominated Seth Cohen to dELiA's board and he is now a director.  The hedge fund also has the right to nominate another individual to the board, but that person cannot be an employee of the fund.

Valinor originally started its dELiAs stake in October of 2013. 

Lee Cooperman Updates Stake Too

Omega Advisors' Lee Cooperman has also filed an amended 13G with the SEC regarding dELiA's too.  Lee has revealed he owns 11.42% of the company with over 8.5 million shares.

His stake is comprised of 3.75 million shares of common stock (issuable upon conversion of 30,000 shares of Series B Convertible Preferred Stock).

A few months ago, we also highlighted that Tiger Global raised its dELiA's stake.

Per Google Finance, dELiAs is "a retail company comprised of two lifestyle brands primarily targeting teenage girls and young women. The Company generates revenue by selling predominantly to teenage consumers through direct mail catalogs, Websites and retail stores. It operates in dELiA*s brand. Through its e-commerce Webpages, catalogs and retail stores, dELiA*s (the brand) offers a variety of product categories to teenage girls to cater to an entire lifestyle. Through its catalogs and the e-commerce Webpages, it sells many name brand products along with its own brand products in key teenage spending categories. These products include apparel and accessories. Its mall-based dELiA*s specialty retail stores derive revenue primarily from the sale of apparel and accessories and, to a lesser extent, branded apparel to teenage girls. It operates in two segments: direct marketing and retail stores."

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