Walk Down Memory Lane - National Post Battering The Hell Out Of Fairfax

[Parsad]

This old article from October 2003 should bring back some memories.  Not only did the National Post rip into Fairfax and accuse it of being the next HIH, they even took a shot at the only analyst firm that called it a buy...Ferris Baker & Watts. 

http://www.citronresearch.com/wp-content/uploads/2007/03/hih_and_fairfax.pdf

I wonder who the "overseas shortseller" source was for the article!  I believe he currently runs a blog that many people actually admire.  Twat! 

Maybe Prem should talk to Ian Karleff who wrote the article back then, and is now the managing editor for the National Post.  Perhaps Diane Francis should write a story about what happened to Fairfax, as she now gets an expose from time to time interviewing Prem for the Post. 

Thanks to Shai for sending me the link!  Cheers!

[Grenville]

Thanks for posting, should be an interesting read!

[JEast]

I was walking down memory lane earlier today when I noticed Mark Cuban going in for a private meeting.  Recall that he even chimed on financial advice that shorting Fairfax was a good idea, or a least that he was shorting it.

Cheers
JEast

[original mungerville]

F*ck*rs.

It is unreal the crime they got away with.

[NormR]

I think Sanj might be referring to Bronte.

Anyway, I wanted to make a couple of points.

1. I think that it's perfectly acceptable to lay out the bear/short case and to try to make such a case via the media.  Indeed, the law tends to be slanted against the bears.

2. It seems apparent that some on the short side went way way way too far.  If half of FFH's complaints are true - and I've no reason to doubt them - then some of the hedgies/etc should be in the grey bar motel.  Despicable seems to be a good word to use.

I personally don't short.  But I always find a good bear piece interesting.  It helps to understand the other side of what is often my bull case.  If a good bear case is basically BS then the bull case is improved.  The thinking behind a well thought out bear case can also be useful in other situations.  In this way, I find the Bronte blog to be interesting when it comes to other firms.  (Sorry Sanj!) 

But one must be armed for a certain amount of dissembling from bears/bulls with big amounts of money on the line.  Some hedgies seem to particularly aggressive in this regards.

I also often appreciate the bears for providing me the opportunity to buy cheap. 

[Parsad]

I think Sanj might be referring to Bronte.

Anyway, I wanted to make a couple of points.

1. I think that it's perfectly acceptable to lay out the bear/short case and to try to make such a case via the media.  Indeed, the law tends to be slanted against the bears.

2. It seems apparent that some on the short side went way way way too far.  If half of FFH's complaints are true - and I've no reason to doubt them - then some of the hedgies/etc should be in the grey bar motel.  Despicable seems to be a good word to use.

I personally don't short.  But I always find a good bear piece interesting.  It helps to understand the other side of what is often my bull case.  If a good bear case is basically BS then the bull case is improved.  The thinking behind a well thought out bear case can also be useful in other situations.  In this way, I find the Bronte blog to be interesting when it comes to other firms.  (Sorry Sanj!) 

But one must be armed for a certain amount of dissembling from bears/bulls with big amounts of money on the line.  Some hedgies seem to particularly aggressive in this regards.

I also often appreciate the bears for providing me the opportunity to buy cheap. 

Hi Norm,

No worries if you read his blog.  I have a problem with the way he went about the whole thing back then.  Showing up on message boards.  Calling shareholders to tell them his theories and to sell the shares.  A bug in Peter Eavis and Herb Greenberg's ear...not too mention that genius Fabrice Taylor.  Just slimey! 

And I'm a guy who happily holds a grudge against scumbuckets, so I'll never let him off the hook.  Won't patronize, won't support in any way.  There are plenty of other people with terrific intellect and insights, where I will never feel dirty listening to what they have to say, so they will get my ear and readership.  Cheers!

[NormR]

Hi Norm,

No worries if you read his blog.  I have a problem with the way he went about the whole thing back then.  Showing up on message boards.  Calling shareholders to tell them his theories and to sell the shares.  A bug in Peter Eavis and Herb Greenberg's ear...not too mention that genius Fabrice Taylor.  Just slimey! 

And I'm a guy who happily holds a grudge against scumbuckets, so I'll never let him off the hook.  Won't patronize, won't support in any way.  There are plenty of other people with terrific intellect and insights, where I will never feel dirty listening to what they have to say, so they will get my ear and readership.  Cheers!

Fair enough Sanj!   

and don't get me wrong, I'd much rather have my money with FFH!

As an aside, whenever someone has called me up about a stock it has been a perfect negative indicator.  I was once lectured by a blowhard CEO about a poor quant rating I put on his stock.  Turned out he was about to/in the process of selling his shares and departing the firm.  Another one came out of the blue on the short side.  I think I've about tripled my money in the stock since the call.   

Fabrice has been a useful negative indicator on several occasions.     

[Dazel]

I thank them!

Made a killing on Fairfax!!!! Thanks to all of you for your analysis during that time...we truly were alone!

Dazel.

[longinvestor]

I thank them!

Made a killing on Fairfax!!!! Thanks to all of you for your analysis during that time...we truly were alone!

Dazel.

Ditto. Able to make the once-in-a-lifetime buy below BV of a shareholder friendly company which is focused on growing book at 15% from here on. Without the shenanigans, where would we have found such a great deal?