Author Topic: Fairfax 2018  (Read 119136 times)

Dazel

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Re: Fairfax 2018
« Reply #470 on: November 06, 2018, 03:59:42 PM »

I have not been paying attention to the share based awards that have ballooned at Fairfax this has never been an issue when looking at Fairfax over the 20 years that I have...In early 2017 when I began to look at Fairfax again there were no such awards..0 (2016-antidilutive). After the Allied purchase I did not pay enough attention to the diluted share count to pick up on the share based awards as I assumed there would be shares held back for performance of Aliied after the acquisition that would be dilutive with a successful transition.

My comments on buybacks in hindsight are now completely and utterly wrong as Fairfax is buying back stock to try to keep up with stock handouts. I apologize for the oversight...trust me I am pissed at the mistake. My buy back theory is wrong...If I were paying more attention to management rather than the great opportunity that the companies, assets, liquidity and capital structure offer I would not have missed it. Fairfax is still set to out perform but the share count will not be shrinking like I had hoped unless the shares get hit hard and the share awards become anti dilutive.


globalfinancepartners

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Re: Fairfax 2018
« Reply #471 on: November 06, 2018, 04:09:37 PM »
I get how options can be anti-dilutive, but how are share awards ever anti-dilutive?

Dazel

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Re: Fairfax 2018
« Reply #472 on: November 06, 2018, 04:38:44 PM »

2016 annual report says they are  antidilutive and therefore not used in earnings per share calculation in that year.

Fact is I donít know what the hell they are...what the strike price is...who is getting them. Nothing so they may not be antidilutive in share price fall as they did in 2016. That is an assumption but obviously I have been wrong before!

When I get over my pissed off mood I will look some more.