Author Topic: JEF - Jefferies Group  (Read 604807 times)

fareastwarriors

  • Hero Member
  • *****
  • Posts: 3550
Re: JEF - Jefferies Group
« Reply #770 on: May 24, 2014, 09:51:57 AM »
pink slime is back, we like our low price ground beef too much


http://online.wsj.com/news/articles/SB10001424052702303749904579579991127674958

 'Pink Slime' Makes Comeback as Beef Prices Spike

Surging U.S. Beef Prices Revive Ingredient That Nearly Disappeared Two Years Ago


ajc

  • Guest
Re: JEF - Jefferies Group
« Reply #771 on: May 29, 2014, 09:17:11 AM »

Quote
Berkadia Commercial Mortgage LLC, the joint venture of Berkshire Hathaway Inc. (BRK/A) and Leucadia National Corp. (LUK), added $2 billion to its loan-servicing portfolio with the purchase of Phoenix-based Keystone Commercial Capital.

Keystone, with mortgage-banking offices in Boston and San Diego as well as Phoenix, will continue to be overseen by co-founder and managing partner Charlie Williams, Berkadia said today in a statement. Berkadia picks up 16 employees with the purchase.

“Berkadia has invested significant time in developing relationships -- particularly with life-insurance companies -- to expand our financing capabilities,” Ernie Katai, head of production, said in the statement. “This demonstrates our continued commitment to that expansion.”

Berkadia, the third-largest U.S. commercial and multifamily mortgage servicer, had a portfolio of more than $229 billion as of March 31, according to the statement. Servicers collect payments from borrowers and pass them on to mortgage lenders or investors, minus fees. They can also handle foreclosures when borrowers don’t pay.


http://www.bloomberg.com/news/2014-05-28/berkadia-boosts-loan-servicing-by-2-billion-with-deal.html



racemize

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2737
Re: JEF - Jefferies Group
« Reply #772 on: May 30, 2014, 12:42:39 PM »
from Tweedy's last AR:

Quote
We also pared back our positions in Google, Henkel, Leucadia, Unifirst, Wal-Mart, and Sysco, all of which were trading at, or getting nearer to, estimated intrinsic value.

Sportgamma

  • Sr. Member
  • ****
  • Posts: 475
    • Fundamental Finance Playbook
Re: JEF - Jefferies Group
« Reply #773 on: May 30, 2014, 01:06:50 PM »
from Tweedy's last AR:

Quote
We also pared back our positions in Google, Henkel, Leucadia, Unifirst, Wal-Mart, and Sysco, all of which were trading at, or getting nearer to, estimated intrinsic value.

I don´t really get that...LUK went as high as 32 around the merger, now they are around 25.60 and I for one am pretty satisfied with what they have been doing in the mean time.

racemize

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2737
Re: JEF - Jefferies Group
« Reply #774 on: May 30, 2014, 04:34:48 PM »
I thought it was a bit strange as well.

Parsad

  • Administrator
  • Hero Member
  • *****
  • Posts: 8773
Re: JEF - Jefferies Group
« Reply #775 on: May 30, 2014, 05:51:27 PM »
from Tweedy's last AR:

Quote
We also pared back our positions in Google, Henkel, Leucadia, Unifirst, Wal-Mart, and Sysco, all of which were trading at, or getting nearer to, estimated intrinsic value.

I don´t really get that...LUK went as high as 32 around the merger, now they are around 25.60 and I for one am pretty satisfied with what they have been doing in the mean time.

Tweedy is well off what LUK's intrinsic value is.  I wouldn't pay attention.  Cheers!
No man is a failure who has friends!

Spekulatius

  • Hero Member
  • *****
  • Posts: 3577
Re: JEF - Jefferies Group
« Reply #776 on: May 30, 2014, 06:16:11 PM »
Quote
Tweedy is well off what LUK's intrinsic value is.  I wouldn't pay attention.  Cheers

I think the Jeffries reverse takeover made the stock less interesting. I owned some LUK but sold when the Jeffries merger was annouced. National Beef did not work out. I don't know how to value Lake Charles and the Oregon LNG terminal and my concern was and still is, that these could become huge money pits, because I think that LUK does not have the expertise to really manage such huge projects. I know the idea is to partner but even though, I still think they are risky and current NPV us close to zero.

If these projects come to pass with good economics, they could be a gamechanger.
« Last Edit: May 30, 2014, 09:40:01 PM by Spekulatius »
Life is too short for cheap beer and wine.

Parsad

  • Administrator
  • Hero Member
  • *****
  • Posts: 8773
Re: JEF - Jefferies Group
« Reply #777 on: May 30, 2014, 07:23:34 PM »
Quote
Tweedy is well off what LUK's intrinsic value is.  I wouldn't pay attention.  Cheers

I think the Jeffries reverse takeover made the stock less interesting. I owned somd LUK but sold when the Jeffries merger was annouced. National Beef did not work out. I don't know how to value Lake Charles and the Oregon LNG terminal and my concern was and still is, that these could become huge money pits, because I think that LUK does not have the expertise to really manage such huge projects. I know the idea is to partner but even though, I still think they are risky and current NPV us close to zero.

If these projects come to pass with good economics, they could be a gamechanger.

I think the Jefferies deal is one of the smartest deals they ever pulled.  It resolved a number of issues, while allowing them to acquire the best mid-tier investment bank in the industry for a very fair price.  The value of which won't appear probably for another 5-10 years.  Cheers!
No man is a failure who has friends!

matjone

  • Hero Member
  • *****
  • Posts: 601
Re: JEF - Jefferies Group
« Reply #778 on: May 31, 2014, 06:49:02 AM »
I think valuing this is way out of my league,  but I decided to buy some during the merger because it seemed like I could get a good deal on LUK by buying JEF and then I'd just let Cumming/Steinberg work their magic.  Alright, that didn't work out but Handler's record is impressive and I am going to let it ride, and in fact I'm tempted to buy more. 

LUK is at 90% of book and just glancing at their report and looking what these businesses are earning  it seems like they like to carry things conservatively on their balance sheet. They haven't made much on national beef so far, but I think it's too soon to judge whether that was a smart deal or not.  They have said it is the toughest time in the last decade for beef processing, and they are earning a really small margin.  Tyson says earning a 2.5%-4.5% margin on beef processing is a reasonable expectation.  If that happens then national beef may turn out to be a good deal after all.
When stocks are high, money rates rising, and business prosperous, at least half a given fund should be placed in short-term bonds. - Philip Carret

scorpioncapital

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1834
    • scorpion capital
Re: JEF - Jefferies Group
« Reply #779 on: May 31, 2014, 07:25:54 AM »
Oregon LNG is a big maybe. No ferc approval yet, and no construction till at least 2015-2016. I would consider it zero for now, those Oregon environmentalists are extremely confrontational about protecting Nature.

Lake Charles is in my mind a done deal. Financial closing and the $500m investment is imminent this year although I hear an echo of Greenspan who said that boards are reluctant to approve ready to go long term capital investments if they can't know future tax rates and the inflation environment. Investment in long lived assets is not paying off (that is why Greenspan believes we are nowhere close to a bubble - bubbles form when all is well with the world. That 20-30 year assets are not being invested in suggests a dysfunctional market, hence no bubble)

 Even if you earn 10% on your $8.5 billion of tangible equity, that's $2.3/share being added each year. I see IV at $35/share without much excitement happening. Pretty much everything LUK owns is pretty cyclical. I can't think of one business that isn't. Cyclical businesses are up and down. It's no Berkshire. National Beef is down. Jefferies is down too (most investment banks are down, returning hardly 10% on equity). It would be best to read up on how to value cyclical businesses because that is what we have here ...plus a few new projects. Now what I want to understand is compensation in cyclical companies. It seems LUK is paying as if it assumes an average over the cycle because one can't justify such high compensation during the low parts and I think this is evidenced by the large block of 'no' votes for a compensation-related vote at the latest AGM.
« Last Edit: May 31, 2014, 07:39:14 AM by scorpioncapital »