Author Topic: JEF - Jefferies Group  (Read 609163 times)

Deepdive

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Re: JEF - Jefferies Group
« Reply #1550 on: June 22, 2019, 09:57:34 PM »
What's happened to their asset management business?  Wasn't LUK, I mean JEF, seeding fund manager just 4-5 years ago? 


ukvalueinvestment

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Re: JEF - Jefferies Group
« Reply #1551 on: July 08, 2019, 05:25:39 AM »
Do these recent results change anyone's views.

They are now earning 10% on tangible equity, one of their key competitors (Deutsche) is exiting the market.

Trading at big discount to tangible, still, and still buying back shares.

If they can have another good quarter of improvement, they will be earning more than their cost of equity, and this surely starts to trade nearer book?
@ukvalueinv

Parsad

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Re: JEF - Jefferies Group
« Reply #1552 on: July 08, 2019, 12:25:23 PM »
Do these recent results change anyone's views.

They are now earning 10% on tangible equity, one of their key competitors (Deutsche) is exiting the market.

Trading at big discount to tangible, still, and still buying back shares.

If they can have another good quarter of improvement, they will be earning more than their cost of equity, and this surely starts to trade nearer book?

They have also acquired some top teams from their competitors since the beginning of the year, fortifying their offerings and ability going forward. There is alot to like at Jefferies in the last couple of years.  Cheers!
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ABM

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Re: JEF - Jefferies Group
« Reply #1553 on: July 09, 2019, 12:41:05 PM »
Any views on the updated comp plan?  Unusual move to clawback prior year awards and revise targets and $ amounts of PY incentive plan.  Still a lower hurdle but added relative stock return component and boosted ROTE targets.  Not sure how the homefed TBV accretion impacts comp calc, though.  As a one-time accounting gain, my view is it should be adjusted out because with this transaction alone the 2019 hurdle is met.

Also, on the I banking biz, any strong views on their leverage levels? They seem to be heavily window dressing the QEs. 




thepupil

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Re: JEF - Jefferies Group
« Reply #1554 on: September 16, 2019, 05:24:09 AM »
good thing I hold JEF in mostly tax deferred accounts...

I approve of this move, but don't love the tax inefficiency, doesn't effect me much personally, but if I was similarly sized in taxable accounts it certainly would.

Jefferies to Distribute Spectrum Brands Stock to Holders in Div.
By Nick Lichtenberg
(Bloomberg) -- Jefferies Financial, which currently owns 7.51 million shares, or about 15.4% of Spectrum Brands, approved a distribution to its shareholders of these Spectrum Brands shares.
Jefferies holders will get about 0.025 of a share of Spectrum Brands stock for each share of Jefferies stock held
Based on closing market prices on Sept. 13, dividend reflects distribution of about $1.50 per Jefferies share


Jefferies Financial Group Announces Special Dividend of Spectrum Brands Common Stock
Business Wire
NEW YORK -- September 16, 2019
Jefferies Financial Group Inc. (NYSE: JEF or Jefferies), which currently owns 7,514,477 shares, or approximately 15.4%, of the common stock of Spectrum Brands Holdings, Inc. (NYSE: SPB or Spectrum Brands), announced today that its Board of Directors has approved a distribution to stockholders of Jefferies of these Spectrum Brands shares. Jefferies will distribute the 7,514,477 Spectrum Brands shares through a special pro rata dividend (the “Distribution”) effective on October 11, 2019 (the “Distribution Date”) to Jefferies’ stockholders of record as of the close of business on September 30, 2019 (the “Record Date”). Stockholders of Jefferies will receive approximately 0.025 of a share of Spectrum Brands common stock for each share of Jefferies common stock held as of the Record Date. Based on closing market prices on September 13, 2019, the dividend reflects a distribution of approximately $1.50, or 7.4%, per Jefferies share.
Rich Handler and Brian Friedman, CEO and President, respectively, of Jefferies, said “The Distribution is consistent with our goal of maximizing long-term value for our shareholders. We continue to focus on growing our financial services businesses, simplifying our structure and returning excess capital to our shareholders in whatever form is appropriate. Including the Distribution, Jefferies has returned approximately $2.2 billion to its shareholders over the past 17 months through share repurchases and dividends.”
“We worked closely with Harbinger Group Inc. (“HRG”) to simplify HRG and then merge with Spectrum Brands to maximize value for all stakeholders. We feel the Distribution allows Jefferies’ shareholders to realize the benefit of this investment in the most efficient and effective manner. We wish Spectrum Brands much success going forward.”
The Spectrum Brands shares to be distributed will be delivered in book-entry form, subject to certain exceptions, at the effective time of the Distribution, and Jefferies’ stockholders who hold their shares through brokers or other nominees will have their Spectrum Brands common shares credited to their accounts by their brokers or other nominees. No fractional shares will be distributed, and stockholders will receive cash in lieu thereof. The Distribution will be taxable for Jefferies’ stockholders.
In connection with the Distribution, Jefferies will send information detailing the Distribution to its stockholders of record on the Record Date. Jefferies will post the information on its Investor Relations website at http://ir.jefferies.com/notices-disclosures/Index?KeyGenPage=1073753799. No vote or action is required by Jefferies’ stockholders in order to receive the distribution of shares of Spectrum Brands common stock in the Distribution.

benhacker

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Re: JEF - Jefferies Group
« Reply #1555 on: September 16, 2019, 05:44:26 AM »
Disappointing... I would have liked to defer the tax impact here as well.
Ben Hacker
Beaverton, Oregon - USA

scorpioncapital

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Re: JEF - Jefferies Group
« Reply #1556 on: September 16, 2019, 05:46:36 AM »
Could they have sold the stake, used the loss carryforward, and distributed the cash instead?


gfp

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Re: JEF - Jefferies Group
« Reply #1557 on: September 16, 2019, 07:12:09 AM »
Sure, but the cash dividend would still be taxed the same as this dividend.  Plus they would have had to liquidate an enormous block of SPB stock at a price they may not think represents full value.  I would have expected the spin out of shares to be tax free, but I guess they couldn't figure out a way to do it

Could they have sold the stake, used the loss carryforward, and distributed the cash instead?

thepupil

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Re: JEF - Jefferies Group
« Reply #1558 on: September 16, 2019, 07:26:37 AM »
I'm not sure if NOL's shield investment gains; they potentially only shield operating income. I could be wrong though. Also, who wants to buy 15% of SPB? A stockpicker doesn't want to own that big of a slug, a strategic or PE wants control.

It is annoying, but in general it represents distribution of tangible book value (less a tax haircut on shares held in taxable). That tax haircut is much lower than the healthy discount paid relative to tangible/book/intrinsic value, so I consider it a positive and a nice realization of discount paid. And SPB is arguably cheap, so there's that too.

Also, one can actively swap into tax advantaged accounts to the extent they have shares in taxable that aren't up too much.

Ideally I would've preferred they dribble out (or sell entirely if they could find a buyer) those shares and buy back stock rather than triggering investor level tax, but I'll take it.

I would note, that this makes the bonds incrementally less safe.
« Last Edit: September 16, 2019, 07:38:15 AM by thepupil »

Foreign Tuffett

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Re: JEF - Jefferies Group
« Reply #1559 on: September 16, 2019, 07:59:24 AM »
I'm not sure if NOL's shield investment gains; they potentially only shield operating income. I could be wrong though. Also, who wants to buy 15% of SPB? A stockpicker doesn't want to own that big of a slug, a strategic or PE wants control.

It is annoying, but in general it represents distribution of tangible book value (less a tax haircut on shares held in taxable). That tax haircut is much lower than the healthy discount paid relative to tangible/book/intrinsic value, so I consider it a positive and a nice realization of discount paid. And SPB is arguably cheap, so there's that too.

Also, one can actively swap into tax advantaged accounts to the extent they have shares in taxable that aren't up too much.

Ideally I would've preferred they dribble out (or sell entirely if they could find a buyer) those shares and buy back stock rather than triggering investor level tax, but I'll take it.

I would note, that this makes the bonds incrementally less safe.

Do you think we'll see any forced selling of SPB given the spinoff-like dynamic here?