Lee Cooperman Discloses dELiA's Stake ~ market folly

Wednesday, November 6, 2013

Lee Cooperman Discloses dELiA's Stake

Lee Cooperman has filed a 13G with the SEC disclosing a brand new equity position in dELiA's (DLIA).  Per the filing, he owns 6.93% of the company with 4,761,905 shares.

The filing was made due to portfolio activity on October 24th.  On that day, the company also issued over 20.7 million shares upon automatic conversion of over $21.7 million in principal of the company's secured 7.25% convertible promissory notes.

Just last week, we highlighted how David Gallo's Valinor Management started a DLIA stake as well.

*Update: II Alpha talked to Cooperman about the stake and he said it was for his personal account and he bought it "because a guy I respect recommended it to me.  I have done no original work other than taking my granddaughter shopping in one of their stores as she likes the merchandise."

Lee Cooperman files with the SEC under his own name, but his hedge fund Omega Advisors files its SEC documents under that name as well, so it's interesting to hear this is a personal position.  It's also interesting to hear that he simply bought this stock on a tip with hardly any research.

Per Google Finance, dELiA's 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."

For more on Omega Advisors, head to Cooperman's 4 long ideas at the Invest For Kids Chicago conference.

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