Author Topic: JEF - Jefferies Group  (Read 603853 times)

sampr01

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Re: JEF - Jefferies Group
« Reply #510 on: February 02, 2013, 09:49:35 AM »
I have LUK options, what happens to those option when they have spin off.

Thanks


Parsad

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Re: JEF - Jefferies Group
« Reply #511 on: February 02, 2013, 12:52:16 PM »
I have LUK options, what happens to those option when they have spin off.

Thanks

Nothing.  With the spin-off, if the market believes that the wine business is of worth, it may reduce the trading price of LUK once the spin off occurs...meaning you will be further behind on the exercise price of your options if they are presently under water.  Cheers!
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bargainman

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Re: JEF - Jefferies Group
« Reply #512 on: February 02, 2013, 01:26:28 PM »
I have LUK options, what happens to those option when they have spin off.

Thanks

Nothing.  With the spin-off, if the market believes that the wine business is of worth, it may reduce the trading price of LUK once the spin off occurs...meaning you will be further behind on the exercise price of your options if they are presently under water.  Cheers!

hmm, this is not always true.  often times the current option will become an option on the combined entity.  I believe this was the case with SHLD when the did the OSH spinoff.  But each case is different.  Best to check with your broker. 

Parsad

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Re: JEF - Jefferies Group
« Reply #513 on: February 02, 2013, 01:33:43 PM »
I have LUK options, what happens to those option when they have spin off.

Thanks

Nothing.  With the spin-off, if the market believes that the wine business is of worth, it may reduce the trading price of LUK once the spin off occurs...meaning you will be further behind on the exercise price of your options if they are presently under water.  Cheers!

hmm, this is not always true.  often times the current option will become an option on the combined entity.  I believe this was the case with SHLD when the did the OSH spinoff.  But each case is different.  Best to check with your broker.

You could be right Bargainman.  May be best to contact Leucadia IR.  Cheers!
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racemize

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Re: JEF - Jefferies Group
« Reply #514 on: February 02, 2013, 02:05:30 PM »
I have LUK options, what happens to those option when they have spin off.

Thanks

Nothing.  With the spin-off, if the market believes that the wine business is of worth, it may reduce the trading price of LUK once the spin off occurs...meaning you will be further behind on the exercise price of your options if they are presently under water.  Cheers!

hmm, this is not always true.  often times the current option will become an option on the combined entity.  I believe this was the case with SHLD when the did the OSH spinoff.  But each case is different.  Best to check with your broker.

You could be right Bargainman.  May be best to contact Leucadia IR.  Cheers!

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EdWatchesBoxing

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Re: JEF - Jefferies Group
« Reply #515 on: February 02, 2013, 07:26:07 PM »
I remember having an option position in Cardinal Health, before their spin off of Carefusion. I believe I was entitled to options in both. I was pretty sure I got information regarding options treatment from the OCC website.

fareastwarriors

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Re: JEF - Jefferies Group
« Reply #516 on: February 04, 2013, 09:00:48 AM »
http://www.bloomberg.com/news/2013-02-04/jefferies-hefty-compensation-is-credit-negative-moody-s-says.html


Jefferies Group Inc. (JEF)’s plan to pay two executives $78 million in future incentive compensation poses a negative threat to the firm’s bondholders, Moody’s Investors Service said.

“While Jefferies has outperformed its peers, an excessive focus on short-term compensation has been at the root of many outsized trading, credit and litigation losses at investment banks,” Moody’s said today in a report.




Even though the awards are subject to three-year vesting, risks can take longer than that to appear, Moody’s said. Jefferies’s board may also be “insensitive” to the concerns of regulators regarding compensation levels, the ratings firm wrote.


jay21

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Re: JEF - Jefferies Group
« Reply #517 on: February 18, 2013, 05:30:36 AM »
I want to dig more into LUK and now JEF is the biggest part of LUK.  Two quick questions:

1.  How comfortable are people with Handler?  What have you read about him and what has he done that makes you think he will be a good CEO of the combined company?  I know he brought LUK the Fortescue deal, so maybe he does have a good eye for deals. 

2.  Everyone mentioned the compensation ratio is high as they are luring talent to the Company.  Is this easy to bring down?  Will normalized earnings look better?
@jay_21_

Parsad

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Re: JEF - Jefferies Group
« Reply #518 on: February 18, 2013, 09:30:50 AM »
I want to dig more into LUK and now JEF is the biggest part of LUK.  Two quick questions:

1.  How comfortable are people with Handler?  What have you read about him and what has he done that makes you think he will be a good CEO of the combined company?  I know he brought LUK the Fortescue deal, so maybe he does have a good eye for deals. 

2.  Everyone mentioned the compensation ratio is high as they are luring talent to the Company.  Is this easy to bring down?  Will normalized earnings look better?

1)  He has a very good track record at JEF.  Take a look at some of the earlier presentations.

2)  I'm of the opinion that if you own a significant portion of the business, you should have enough motivation to perform your best regardless of any other compensation.  Unfortunately, not everyone feels this way, and Handler is getting compensation on par with any other financial firm.  So either you are ok with it, or you aren't.  I think he'll do very well for LUK over time, so I am ok with it for now, as I've become accustomed to seeing this type of plan for CEO's.  Doesn't mean I have to like it, nor do shareholder's have to put up with it if he does not perform.

Cheers!
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Parsad

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Re: JEF - Jefferies Group
« Reply #519 on: February 19, 2013, 01:54:35 PM »
Leucadia continues to spinoff or sell non-core assets.  Empire Insurance is being sold to White Mountains.  No price given.  Cheers!

http://finance.yahoo.com/news/white-mountains-solutions-acquire-empire-213000982.html
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