JEF - Jefferies Group

[Liberty]

Because I can't believe we still don't have an official thread for Leucadia here, I just had to create it. I feel it's better to have a centralized place to put info than have it spread over tons of different threads that get lost after a while...

Now is an especially good day for that since the stock is down 8.7% right now ($26.85, close to book), and it does look like a pretty decent buying opportunity if you believe in management's powers to keep compounding (though with BRK.B at 69.35, many will probably pick BRK first).

[menlo]

For what it's worth, and assuming I read their annual report correctly, this week is the first time the stock traded under book value since 1998 (using year-end data).

[Liberty]

For what it's worth, and assuming I read their annual report correctly, this week is the first time the stock traded under book value since 1998 (using year-end data).

Seems about right. By my count, it trades at about 1.02 BV today.

[jjsto]

Yeah,  i bought some recently cause it seemed cheap to book (compared to the past) and hopefully the recent volatility gave them a chance to deploy cash.  Nothing too scientific. 

[vn35]

I also bought some LUK, but I still save my ammo for BRK in the low 60s (hoping :-).

[bargainman]

I wonder how the NOLs carry forward played into this.  During the crisis they wrote those down, which killed a significant amount of their reported book value, but since then they've brought them back no?

[woltac]

Based on the 2Q 10Q, I calculate book value per share at $27.80, which includes an NOL per share of $4.73.

From the 10Q:

As a result, the Company was able to conclude that it is more likely than not that it will have future taxable income sufficient to realize a significant portion of the Company’s net deferred tax asset; accordingly, $1,157,111,000 of the deferred tax valuation allowance was reversed as a credit to income tax expense on December 31, 2010.

and

In addition to the reversal of deferred tax liabilities related to unrealized gains, the Company will need to generate approximately $4,000,000,000 of future U.S. pre-tax income to fully realize its net deferred tax asset.

[Poor Charlie]

The guys at LUK keep buying Mueller.  Anyone here familiar with MLI?  At first glance it does not look like a bargain: paying 2x book for a company with thin margins and modestly above average ROC.    I believe Buffett was also in MLI at some point.  Buffett, Cumming, & Steinberg are all smarter than me so I must be missing something.   

[berkshiremystery]

Based on the 2Q 10Q, I calculate book value per share at $27.80, which includes an NOL per share of $4.73.

From the 10Q:

As a result, the Company was able to conclude that it is more likely than not that it will have future taxable income sufficient to realize a significant portion of the Company’s net deferred tax asset; accordingly, $1,157,111,000 of the deferred tax valuation allowance was reversed as a credit to income tax expense on December 31, 2010.

and

In addition to the reversal of deferred tax liabilities related to unrealized gains, the Company will need to generate approximately $4,000,000,000 of future U.S. pre-tax income to fully realize its net deferred tax asset.

A good essay on the current valuation of LUK wrote "bryanemail65" on the yahoo boards.

Cheers!

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=10954&tid=15176&mid=15184&tof=1&rt=2&frt=2&off=1

[berkshiremystery]

The guys at LUK keep buying Mueller.  Anyone here familiar with MLI?  At first glance it does not look like a bargain: paying 2x book for a company with thin margins and modestly above average ROC.    I believe Buffett was also in MLI at some point.  Buffett, Cumming, & Steinberg are all smarter than me so I must be missing something.   

true,... Cumming & Steinberg increased significantly their MLI

http://finviz.com/insidertrading.ashx?oc=96223&tc=7&b=2

2011-08-03  --->  5,274,097 shares of MLI

2011-08-15  --->   7,779,917 shares of MLI