Author Topic: Fairfax2019  (Read 58978 times)

Cardboard

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Re: Fairfax2019
« Reply #90 on: September 28, 2019, 10:17:12 AM »
This was a bad instance but, the one that really discredited Prem for me was this "take-over" of Blackberry that never happened.

It is illegal to make a take-over offer for a public company when you don't have the means or intention to carry it through. I understand that it was subject to obtaining support from friends and all that but, I think it was a manipulative scheme while Blackberry shares were heading downhill.


petec

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Re: Fairfax2019
« Reply #91 on: September 30, 2019, 01:43:13 AM »
What is mindboggling is the decision to continue to hold Resolute Forest Products at all. And may I add...Blackberry, Eurobank, Stelco Torstar etc etc. As far as the "long term" defence for hollding these positions....with the exception of Stelco all of these positions have been held for numerous years without any positive results.

Funnily enough several of these look really interesting to me at the moment. I have developed a new rule for following Fairfax: buy what they buy, just do it several years later.

bearprowler6

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Re: Fairfax2019
« Reply #92 on: September 30, 2019, 06:24:38 AM »
What is mindboggling is the decision to continue to hold Resolute Forest Products at all. And may I add...Blackberry, Eurobank, Stelco Torstar etc etc. As far as the "long term" defence for hollding these positions....with the exception of Stelco all of these positions have been held for numerous years without any positive results.

Funnily enough several of these look really interesting to me at the moment. I have developed a new rule for following Fairfax: buy what they buy, just do it several years later.

Fair enough Petec....but one needs to ask why they are always so early?

In fact...they need to spend considerable time addressing this major flaw in their investment process. For example, as soon as they bought into Stelco it was pointed out by many on this board that the timing was very poor given where we were in the economic cycle and given the tariffs being levied by the Trump administration. And what happens...50% of their investment literally disappears over night.

And they were way early on Blackberry and truth be told this is not a sure thing even from this level. Full disclosure....I bought into Blackberry late last week.

Furthermore...although I might be wrong....Resolute Forest is simply a bad investment. They have had hundreds of million tied up in this loser for years. Time to admit the mistake, sell and redeploy the capital.

I could go on but I think my point has been made. I have followed Fairfax for literally decades and am a very patient investor but something is not right when you assemble a group of equity investments like the ones they hold at the prices they bought in at.

petec

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Re: Fairfax2019
« Reply #93 on: October 01, 2019, 01:53:25 AM »
Fair enough Petec....but one needs to ask why they are always so early?

I agree - that was the underlying point (perhaps not clear) of my post.

That said:

1) It's only fair to point out what they got right, like Quess and Seaspan.

2) I disagree that they should necessarily sell an investment simply because buying it was a mistake. For example FFH will never recoup their investment in RFP, but if consensus is right it will generate half of its market cap and a quarter of its enterprise value in free cash flow over the next two years.

As an aside, I think the Stelco investment will work out fine. To win when investing in bad/low ROIC businesses you need 3 things: underappreciated value; good capital allocation; and low debts (or contracted cash flows that match the debt maturities). Stelco has all three (as does Seaspan although the value is becoming more appreciated by the day).


KFS

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Re: Fairfax2019
« Reply #94 on: October 01, 2019, 10:09:50 AM »
Press Release Details

Fairfax Financial Holdings Limited: Intention to Make a Normal Course Issuer Bid for Subordinate Voting Shares and Preferred Shares
09/26/2019

https://www.fairfax.ca/news/press-releases/press-release-details/2019/Fairfax-Financial-Holdings-Limited-Intention-to-Make-a-Normal-Course-Issuer-Bid-for-Subordinate-Voting-Shares-and-Preferred-Shares/default.aspx


wondering

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Re: Fairfax2019
« Reply #95 on: November 14, 2019, 07:32:17 AM »
https://www.avantelogixx.com/Avante+Logixx+Secures+up+to+%2418.0+million+in+Financing+from+Well+Known+Canadian+Investor+and+To+Expand+Nationally+with+Acquisition+of+A.S.A.P.+Secured+Inc

Another convertible debenture deal,  Relatively small - total $18m Cdn. 7% interest.  If fully exercised, FFH would have 19% of the equity interest in the company.

"Avante Logixx Inc engaged in the provision of security, monitoring, system integration, and technology solutions. Its products and services include residential and corporate security business: Avante control center, monitoring, electronic building management, patrol and rapid response, intelligent perimeter protection, secure transport, international security travel advisory services, locksmith services, and smart home automation. "