Fairfax 2020

[mcliu]

They repurchased ~16k shares in May. Small amount.

[Xerxes]

I listend to Blackberry AGM today.
https://www.blackberry.com/content/dam/blackberry-com/Documents/pdf/investors/Blackberry-AGM-2020-Presentation.pdf

They did a good job to capture the size of the market for s/w security. Unfortunately, but funny enough, they screwed up their Q&A session by getting only one question, some system issue about the work-from-home-AGM or whatever. I didn't like the optics. A software company shouldn't screw up the AGM by not getting the system right.

Interestingly enough, the one question that did get through was about Fairfax, where someone asked if a low-ball bid by FFH can be prevented by a poison pill.
To me that tells me that there is a interest from BB shareholder base in the long term potential of BB, and that there would be push back on any low-ball bid that would undervalue that potential.

Quarterly results are tomorrow, so perhaps we can get more on the Q&A session that didn't happen today.

BlackBerry Fiscal Year 2021 First Quarter Results Conference Call
Date: Wednesday, June 24, 2020
Time: 05:30 PM Eastern Daylight Time

[Xerxes]

Listening to quarterly results now.

BB confirmed that they are redeeming the convertible when it comes due.
Cash released for FFH, i guess ...

[TwoCitiesCapital]

Listening to quarterly results now.

BB confirmed that they are redeeming the convertible when it comes due.
Cash released for FFH, i guess ...

Nice! Plenty of places I imagine they could reinvest that if we get some more turbulence which is looking more likely by the day.

[StubbleJumper]

Listening to quarterly results now.

BB confirmed that they are redeeming the convertible when it comes due.
Cash released for FFH, i guess ...

I will believe it when I see it.  But, all in all, It's perfectly fine for FFH to find some other place to invest $500m, if they actually do get to November without rolling it.


SJ

[Xerxes]

Not sure if this was already posted about Ensign Energy Services Inc. and FFH's swap contract on it.
I guess by mid-June, when FFH entered this agreement the broader market was at all time high, so FFH went back to picking the weird apples.

https://www.globenewswire.com/news-release/2020/06/15/2047994/0/en/Fairfax-Announces-Entering-Into-Swap-Contracts-in-Respect-of-Common-Shares-of-Ensign.html

Q2 results should be interesting not only for FFH, but also for the triple-Bs: Brookfield, Berkshire and Blackstone.
You get to see what this class of institutional investors actually did in terms of market participation in Q2, yes they all talked about it in April and hinted their views.

But the "walk" ought to be more interesting than the "talk".

[StubbleJumper]

Back to the other bidders.....why not Fairfax itself.

 

Dear lord can you imagine the reaction on this board if Fairfax took Torstar private?! Prem can't admit mistakes! Declining industries! Good money after bad! Liquidity! Leverage! AAAAAAAAAARRRRRRGGGGGHHHHH.

Couple of (serious!) points:
1) What makes you believe Torstar did not test the market before agreeing this deal?
2) If there was a better deal to be had, why would Fairfax not have taken it?

3) Anyone can still make a bid.  The break-fee seems to be only $2+1.5m on a deal that is currently valued at $52m.  If somebody figures that this is a bargain and comes in and offers, say, $75m later this week Torstar BoD wouldn't have much choice but to recommend that the offer be accepted and simply pay the break-fee.  Any offer above $55.5m ($52+3.5) would be a no-brainer for shareholders, right?  Probably not going to happen...

Looks like there might be a slightly richer bid for Torstar:  https://www.cbc.ca/news/business/torstar-tsx-bid-1.5643172


SJ

[Bryggen]

Seriously, I have never seen anyone dodging the question as much as Acker on FFH. Ok, at the end he says that if it goes a lot cheaper he would consider buying, but other than that, I didn't learn anything from his intervention on BNN.

We don't have much to focus on these days, so here is the interview:

https://www.bnnbloomberg.ca/market-call/brian-acker-discusses-fairfax-financial~1993367

PS: I guess at around $400 CDN, we could get a better deal than Prem!

[Xerxes]

I listened to 3 of his clips about FFH, BABA and Shopfiy in the same interview.

He just doesn’t like anything.

[Phoenix01]

Best seems to like what they are seeing at Fairfax.
https://www.businesswire.com/news/home/20200710005503/en/Affirms-Credit-Ratings-Fairfax-Financial-Holdings-Limited

How does this compare to the previous (pre-Covid) reports?