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Leucadia (LUK) is a conglomerate company based in NYC and Utah. The company invests in many different businesses, including wineries, casinos, real estate, medical companies, etc.

Per the 10Q for the period ending 3/31/2009, the company reported total equity of $2.6B. The point of this article is to show how this equity may skyrocket.

Included in Leucadia's many investments is the following:

  1. Approximately 48.5M shares in Jefferies Group, an investment bank
  2. Approximately 33M shares in Americredit, an auto loan finance company
  3. Approximately 278M shares Fortescue, a iron ore company

The Jefferies position had a FMV of $670M at 3/31 - today the position is worth approximately $1B. That is a $330M increase.

The Americredit position had a FMV of $193M at 3/31 - today the position is worth approximately $454M. That is an increase of over $250M.

The Fortescue position had a FMV of $490M at 3/31 - today the position is worth over $800M - $900M. That is an increase of over $300M.

For a company with total equity of $2.6B at 3/31, you will note that the three investments outlined will increase book value by over $800M. Of course, these valuations are always subject to change.

Perhaps these increases in values are already baked into the stock. However, based on the above, I believe you will see a positive quarterly report for Leucadia.

Disclosure: I own no shares of LUK, but I have sold puts on LUK at different prices.

Source: Leucadia Sees Huge Increase in Book Value