Author Topic: JEF - Jefferies Group  (Read 595190 times)

racemize

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Re: JEF - Jefferies Group
« Reply #320 on: September 19, 2012, 08:56:57 AM »
Sorry I was ambiguous, I didn't mean so much the money as the whole "oh, we'll dilute your royalty, sorry guys" scenario. Maybe it turned out for the best in the end, I don't know.

Yeah, I understand what you mean now (and agree)--I wasn't sure if you were referring to the settlement or the situation initially. 


ShahKhezri

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Re: JEF - Jefferies Group
« Reply #321 on: September 19, 2012, 08:58:24 AM »
I'm adding to my position on this news, they liquidated an illiquid position that was 1) exposed to commodity risk, 2) because of 1, exposed to China, and 3) questionable management. 

mankap

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Re: JEF - Jefferies Group
« Reply #322 on: September 19, 2012, 09:00:22 AM »
I think it is still a multibagger for LUK.If you look at both the equity and the revenue note, it has provided the biggest gains to LUK.
It could have been much better if Andrew Forrest had not screwed LUK.

benhacker

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Re: JEF - Jefferies Group
« Reply #323 on: September 19, 2012, 09:04:02 AM »
I personally didn't like the FMG common investment, but loved the note.  I bought finally after they started blowing out the common, but I'm a bit surprised they sold the note.  Decent price, but I wasn't too worried about FMG's ability to pay, but I trust LUK so we'll see what they decide to do and how the world unfolds.

Interesting.

Ben
Ben Hacker
Beaverton, Oregon - USA

Dazel

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Re: JEF - Jefferies Group
« Reply #324 on: September 19, 2012, 10:09:34 AM »

What would have happened had they lost the lawsuit? Big dilution...the note expires as well. It is not like a normal royalty that is paid out until the end of production. Smart move cashing in their chips..it is tax free as well because of their tax loss carry forwards...that helps the decision big time.

Leucadia knocked the ball out of the park with Fortescue...what great investment.

Dazel.

tombgrt

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Re: JEF - Jefferies Group
« Reply #325 on: September 19, 2012, 10:59:46 AM »
Agree. The only sad thing is that they already had $1b in cash & equiv. What will they do with this new cash? Pile it up? Could they find a decent acquisition? Special dividend?

bookie71

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Re: JEF - Jefferies Group
« Reply #326 on: September 19, 2012, 12:06:33 PM »
When you are uneasy with your partner, cut your loses and go on to the next opportunity.
In the past, if the opportunities weren't there, they paid out a large special dividend.
Always remember, Pigs get fat and hogs get slaughtered.

Parsad

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Re: JEF - Jefferies Group
« Reply #327 on: September 19, 2012, 04:36:34 PM »
Agree. The only sad thing is that they already had $1b in cash & equiv. What will they do with this new cash? Pile it up? Could they find a decent acquisition? Special dividend?

Cash is never a bad situation, as long as you just don't sit on it for years.  They will find a use for it when others need it most.  LUK is the 2nd largest position in our funds after BAC.  Cheers!
No man is a failure who has friends!

mhdousa

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Re: JEF - Jefferies Group
« Reply #328 on: September 19, 2012, 05:47:12 PM »
Agree. The only sad thing is that they already had $1b in cash & equiv. What will they do with this new cash? Pile it up? Could they find a decent acquisition? Special dividend?

Cash is never a bad situation, as long as you just don't sit on it for years.  They will find a use for it when others need it most.  LUK is the 2nd largest position in our funds after BAC.  Cheers!

Sanjeev, I thought you had concerns about the lack of successors who could emulate the C&S way.  How did you get comfortable?

mankap

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Re: JEF - Jefferies Group
« Reply #329 on: September 19, 2012, 06:38:40 PM »
They will soon find use of cash.Jefferies open lots of doors for them.
I understand that JEF brought Fortescue opportunity to LUK.