Author Topic: JEF - Jefferies Group  (Read 553788 times)

Spekulatius

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Re: JEF - Jefferies Group
« Reply #1510 on: October 14, 2018, 07:19:40 AM »
Most IB's havent done much lately, and JEF has historically been a value trap IMHO.  With that said - at a 5 year low, you now have me interested!

Its mildly interesting, but also note that GS trades at 1.1x book and is a far better business. also note that GS has a huge wealth management business that would be worth a much higher multiple stand alone. JEF does not have a wealth management business, its a second grade investment bank.
To be a realist, one has to believe in miracles.


greenwave

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Re: JEF - Jefferies Group
« Reply #1511 on: January 10, 2019, 08:39:22 PM »
Jeff reported today after market close results through November 30 ,2018 .

"Fully diluted tangible equity per share increased by 22% from $20.48 at the beginning of the fiscal year to
$24.90 at November 30.2018 "

greenwave

greenwave

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Re: JEF - Jefferies Group
« Reply #1512 on: February 04, 2019, 12:59:44 PM »

-- Interview commentary by a longer term noted institutional investor in Jef / Luk

You're a fan of Jefferies Financial Group ( JEF ) [JEF], the former Leucadia. Why?

Jefferies operates a strong broker-dealer and a successful merchant bank. A common variable of a lot of what we own is the good quality of a business -- even if it's a turnaround -- combined with good operators. All the better if they're owner-operators who have their money invested alongside ours. Jefferies had success creating value through timely investments in the merchant bank and opportunistically repurchasing their shares at a sizable discount to net asset value.

This company met earnings expectations last year. They enhanced net asset value by reducing their majority stake in National Beef. Jefferies aggressively repurchased 13% of its shares in 2018, and, despite that, the stock price declined 35%.

It now trades at less than 80% of its tangible book value, and at about a 30% to 35% discount to our conservative low-$30s assessment of net asset value.

Is CEO Rich Handler taking it private?

He has a long way to go, but he recently wrote about the stock price being out of sync, and said "it was as if we were getting the call from our own company about a compelling new investment opportunity." In 2018, Jefferies was their single largest investment. He said the investment story "is becoming more focused and straightforward," meaning he's cleaning up some of the merchant banking stakes, including the National Beef stake.