Author Topic: Toys R Us  (Read 9241 times)

FairFacts

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Toys R Us
« on: April 19, 2018, 08:05:33 PM »
Fairfax has signed an agreement to buy the Toys R Us (Canada).


Parsad

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Re: Toys R Us
« Reply #1 on: April 19, 2018, 08:50:32 PM »
Fairfax has signed an agreement to buy the Toys R Us (Canada).

They have a ton of retail experience...I'm guessing this is going to be another Bill Gregson turnaround project.  My nephew and niece are going to love the fact that I know the owner of Toys R Us now!  Cheers!
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chrispy

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Re: Toys R Us
« Reply #2 on: April 20, 2018, 04:50:47 AM »
Whoa.

dartmonkey

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Re: Toys R Us
« Reply #3 on: April 20, 2018, 03:48:52 PM »
Fairfax has signed an agreement to buy the Toys R Us (Canada).

Yes, but they have only commited to buying it at $300m if there is not a better offer. They would get $9m if a better offer is accepted. $9 million dollar bills don't grow on trees, but for Fairfax, this is pocket change, unless they really buy the asset (which I doubt).

ourkid8

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Re: Toys R Us
« Reply #4 on: April 20, 2018, 04:38:50 PM »
Why do you have doubts?  The next 'best' offer was from Billionaire Isaac Larian, who heads MGA Entertainment, put in a bid of US$215 million.

Fairfax has signed an agreement to buy the Toys R Us (Canada).

Yes, but they have only commited to buying it at $300m if there is not a better offer. They would get $9m if a better offer is accepted. $9 million dollar bills don't grow on trees, but for Fairfax, this is pocket change, unless they really buy the asset (which I doubt).

FFHWatcher

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Re: Toys R Us
« Reply #5 on: April 20, 2018, 06:42:11 PM »
Fairfax has signed an agreement to buy the Toys R Us (Canada).

Yes, but they have only commited to buying it at $300m if there is not a better offer. They would get $9m if a better offer is accepted. $9 million dollar bills don't grow on trees, but for Fairfax, this is pocket change, unless they really buy the asset (which I doubt).

$9M would pay CEO salary for the next 15 years.  That's probably Prem's cost basis on his FFH shares

Parsad

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Re: Toys R Us
« Reply #6 on: April 20, 2018, 09:48:29 PM »
Fairfax has signed an agreement to buy the Toys R Us (Canada).

Yes, but they have only commited to buying it at $300m if there is not a better offer. They would get $9m if a better offer is accepted. $9 million dollar bills don't grow on trees, but for Fairfax, this is pocket change, unless they really buy the asset (which I doubt).

I think they would buy it...over $1B in revenue for $300M with all creditors settled and a clean balance sheet.  This has Bill Gregson running it written all over it.  If somebody outbids them, then they walk away with $9M. 

The toy industry is one ripe for consolidation...retail brick and mortar stores will struggle against Amazon unless they can get scale and continue to move a lot of their business online.  Order online and get delivery or pick up at the nearest store...that's the way everyone is going.  Cheers!
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cwericb

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Re: Toys R Us
« Reply #7 on: April 21, 2018, 01:14:18 AM »
Gregson did well with The Brick and FFH has some experience in the sector with Megablocks.
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ValueMaven

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Re: Toys R Us
« Reply #8 on: April 22, 2018, 12:05:12 PM »
I really dont get why FFH thinks they need to do something at every chance possible??  Toys R Us??  Are you kidding me? 

How about focus on improving underwriting standards across the business lines/Allied?  Allied has been a big time mistake in the short-term, particularly 1) Given all of the losses 2) The fact that we used UNDERVALUED FFH shares, which were trading right at BV to 3) Acquire a business basically at the top of the reinsurance market (note: most reinsurance stocks outside of XL are down -20% or more)...

really wish FFH diversified out of all of these small/crappy/POS businesses and tried to focus on improving underlying earnings...

I dont get it


FairFacts

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Re: Toys R Us
« Reply #9 on: April 22, 2018, 05:49:20 PM »
I really dont get why FFH thinks they need to do something at every chance possible??  Toys R Us??  Are you kidding me? 

How about focus on improving underwriting standards across the business lines/Allied?  Allied has been a big time mistake in the short-term, particularly 1) Given all of the losses 2) The fact that we used UNDERVALUED FFH shares, which were trading right at BV to 3) Acquire a business basically at the top of the reinsurance market (note: most reinsurance stocks outside of XL are down -20% or more)...

really wish FFH diversified out of all of these small/crappy/POS businesses and tried to focus on improving underlying earnings...

I dont get it


Patience Grasshopper......

I don't get it either, we don't have the info that the Fairfax folks are looking at so I don't sweat over the individual investment decisions. Look at the divestments last year Bank of Ireland, ICICI Lombard, First Capital, all huge winners... as I said patience!