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  • Quality Of Earnings Issue At Jarden Corp. [View article]
    Amit,

    Completely agree with you about the poor quality of earnings at Jarden. In fact there are a few more issues re their quality of earnings as discussed in this article from July (http://seekingalpha.co...)

    Management seems to use the company as a legal piggy bank for their own benefit. I wouldn't be shocked if management announces another buyback with full year results (esp if results aren't a beat). This is one promotional management team that seems to spend an awful lot of time courting Wall Street rather than focusing on their core business.
    Jan 3 01:36 AM | Likes Like |Link to Comment
  • Quality Of Earnings Issue At Jarden Corp. [View article]
    Amit,

    Completely agree with you about the poor quality of earnings at Jarden. In fact there are a few more issues re their quality of earnings as discussed in this article from July (http://seekingalpha.co...)

    Management seems to use the company as a legal piggy bank for their own benefit. I wouldn't be shocked if management announces another buyback with full year results (esp if results aren't a beat). This is one promotional management team that seems to spend an awful lot of time courting Wall Street rather than focusing on their core business.
    Jan 3 01:36 AM | Likes Like |Link to Comment
  • Quality Of Earnings Issue At Jarden Corp. [View article]
    Amit,

    Completely agree with you about the poor quality of earnings at Jarden. In fact there are a few more issues re their quality of earnings as discussed in this article from July (http://seekingalpha.co...)

    Management seems to use the company as a legal piggy bank for their own benefit. I wouldn't be shocked if management announces another buyback with full year results (esp if results aren't a beat). This is one promotional management team that seems to spend an awful lot of time courting Wall Street rather than focusing on their core business.
    Jan 3 01:36 AM | Likes Like |Link to Comment
  • Get More From Sears Holdings: Part I - Q2 Earnings [View article]
    I strongly suspect Santos is wrong on this.

    IIRC - Berkowitz (well his staff) actually visited tax collector's offices across the country in 2008-2009 to come up with an estimate of the value of the real estate. I think the conclusion he came to then was that the tax assessments based value was something like $80-$90 a share. he has given this number a couple of times but certainly in the interview he did with OID where he said his portfolio was at "back the truck up valuations." (I think it may have been in March 09 - basically at the exact bottom but may be wrong - it was around then).

    I highly doubt Sears has much real estate that is "over valued." But Sears real estate is a pain to figure out because of the 80/20 rule - 80% of the value probably comes from 20% of the locations. Without doing a ton of work - it is nearly impossible to know which locations are bringing all the value and hence decide on whether the real estate sales are the jewels being sold or just a combination of stuff.

    Santos also seems to think the brands Sears owns have zero value (or insignificant) which is highly dubious. Kenmore, Lands End, Craftsman all are well known, well regarded brands and could easily be sold for billions. The notion that they are irrelevant to the value of the company is absurd.

    I have no position in this stock currently.
    Aug 21 11:31 PM | 2 Likes Like |Link to Comment
  • Buybacks: A Controversial Method Of Returning Capital To Shareholders [View article]
    I think the optics of the ASFI buyback are horrid. The company bought back shares above market price (iirc like 5-7% above mkt prices) from a major shareholder. I can think of a few shareholders who would want to sell their shares at 5-7% above market.

    I completely agree with you that a buyback at ASFI is good as the company trades at a significant discount to book. Yes the company is actually even more undervalued since it has assets marked at zero still producing income.I don't disagree with you that buying back shares make sense.

    I just think management should treat all shareholders equally. They didn't. The notion that the selling shareholder was altruistic and said hey here is 1/15 of this company for free is ridiculous. Market participants don't work that way.

    Next time someone wants to sell shares - they can contact you and you can pay 7% above market. heck you can even comment on Seeking Alpha articles about how you got the shares for free.
    Jul 11 04:24 PM | 1 Like Like |Link to Comment
  • Buybacks: A Controversial Method Of Returning Capital To Shareholders [View article]
    " As you said, once you sell you shares in the buy back, you lose ownership of the shares you sold, whereas my percentage ownership of the company remains unchanged if I receive dividends."

    But you can sell part of your shares keeping your percentage of the company the same. Its not necessary for you to sell all your holdings at a time.

    I agree with you that increasing you EPS should not be a driver for a buyback - it should be because it's undervalued. That was the reason I mentioned Jarden as a poor reason for a buyback.
    Jul 9 07:40 PM | Likes Like |Link to Comment
  • LIBOR Related Lawsuits: How Do They Affect The Banks? [View article]
    Thanks for the explanation Geodan.
    Jul 5 02:37 PM | Likes Like |Link to Comment
  • LIBOR Related Lawsuits: How Do They Affect The Banks? [View article]
    Just so we are clear - Banks may set interest rates as part of their business but that's not what LIBOR is. My understanding of LIBOR (and please correct me if I am wrong) is that it is essentially the interest rate at which the Bank is borrowing or would borrow in the London Inter-Bank Market. The banks don't really "set" it. It is what it is. The bank can't say "oh ya we borrow at 1% but we wanted to set LIBOR at .5%." It has to report the report the rate at which it borrows in London just before 11:00 o'clock.

    As far as emails go - I think there is little dispute that LIBOR was artificially manipulated. Diamond in his testimony agreed it was too. There is no way only one bank alone can do that given how it is calculated. The Barclays emails make for cringe-worthy reading. I don't think its a stretch to expect inter-bank emails given whistle-blower incentives and media reports of such whistle-blowers already existing.
    Jul 5 12:52 PM | Likes Like |Link to Comment
  • LIBOR Related Lawsuits: How Do They Affect The Banks? [View article]
    If I am reading the complaint correctly (and I am not a lawyer or very experienced at reading the complaints) but Baltimore is suing saying they invested in LIBOR securities: "Defendants’ manipulation of LIBOR allowed them to pay unduly low interest rates to investors, including Baltimore Plaintiffs, on LIBOR-based financial instruments during the Class Period."

    Also keep in mind this is just the start of the process. As more documents are revealed, these complaints will get amended and new ones will be fined. I suspect Bank's will argue they suffered too since they lent out money at LIBOR + x% too.

    But in cases where they admit or are perceived of wrongdoing that defense wont sway judges and juries - see the Enron-related lawsuits, or even the mortgage related ones.
    Jul 5 10:25 AM | Likes Like |Link to Comment
  • LIBOR Related Lawsuits: How Do They Affect The Banks? [View article]
    Chris Moreno has it right - just because banks low-balled rates, doesnt mean that they can't have hurt investors. Like he said if you owned a corporate rate bond - you lost out by artificially low rates.

    Grovsje - I think the argument is that Banks colluded and lied to keep low rates low. I am fairly sure that's not allowed, hence the admissions of wrongdoing and fines that BCS paid,
    Jul 5 09:49 AM | Likes Like |Link to Comment
  • U.S. Banking Sector Looks Relatively Attractive Compared To European And Japanese Banks [View article]
    Banks in the US are going to face some pretty extensive litigation risk for the near future. The housing relate mess is just beginning to end but now LIBOR has reared its head. Banks aren't catching a break these days.. though i guess 0% interest in borrowing from the Fed is a pretty big one..

    http://seekingalpha.co...
    Jul 5 05:49 AM | Likes Like |Link to Comment
  • LIBOR Related Lawsuits: How Do They Affect The Banks? [View article]
    MrNomad - Apologies but I don't really day trade so its hard for me to present trading opportunities. I trust other readers may be able to provide insight.

    In the short - I would guess that bank stock prices will suffer as investors start thinking about this risk and figuring out how much exposure there is. It seems high right now but may be the banks will present more clarity on their earnings calls. In q1 they generally said its for the lawyers to comment but this is a two year old issue. Which I think few if any retail investors considered.

    If there is a law fund that's public buy that one cause there is going to be a ton of billable hrs though.. (j/k)
    Jul 5 05:43 AM | Likes Like |Link to Comment
  • A Private Equity Fund With A 10% Dividend Yield? [View article]
    2009 was a nice time to get into this stock. Being patient with it has paid off nicely so far. Glad you enjoyed reading it.
    Jul 4 07:43 PM | Likes Like |Link to Comment
  • A Private Equity Fund With A 10% Dividend Yield? [View article]
    thank you for reading. Glad you found the article helpful.

    Price performance would be nice but getting 10% to wait isn't too bad in this interest rate environment.
    Jul 3 06:45 PM | Likes Like |Link to Comment
  • BofA Wins Big In Court, May Have Finally Contained Countrywide-Related Lawsuits [View article]
    iirc, Lewis was not pressured to complete the Countrywide deal - he jumped at the chance. I could be wrong though.

    On Merrill, after agreeing to the merger, he wanted to get out of it under the material change clause. But the way the contracts were written the Fed and Paulson said they would not endorse BAC's interpretation of there being a material adverse change. It has also been rumored that Paulson basically said it would reflect poorly on management's ability to run a bank if it tried to get out of the deal.
    Jul 2 04:14 PM | Likes Like |Link to Comment
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