Author Topic: JEF - Jefferies Group  (Read 599086 times)

Munger

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Re: JEF - Jefferies Group
« Reply #80 on: November 04, 2011, 12:31:36 PM »
Txlaw -- those are the exact questions and answers.

Even better -- I would encourage all to listen to the conference call so they can hear management hem and haw through the q&a.

And Txlaw -- why don't you answer the following for us based on your "reading" of the SEC filings and the transcript with direct, specific answers -- feel free to cut and paste exactly from management comments and SEC filings.  (this should be interesting given the BAC experience)  Reality will show you can't provide anything more than vague rhetoric offered by management.


What good is a hedge if it doesn't work when you need it most?

What good is citing high inventory turnover when the inventory doesn't turn during periods of stress?

Even if it's just roughly, what was maybe the percentage of impacts of secondary trading versus prop and then inventory marks, even if it's just generally speaking? I mean, was one disproportionately impactful than any other?

And then just one last for me on the comp ratio, I mean clearly jumped up in the quarter. Revenues were down. For the nine months, it's about 60%. I mean, if we assume I hope not but sort ofstatic level of revenues going forward, is the 3Q absolute number of comp, kind of sticky?

Okay. So even though it's happened a few quarters in a row, it's really just about when clients
are looking to transact?

How did the convert market collapse but JEF avoid losses?

« Last Edit: November 04, 2011, 12:33:39 PM by Munger »


txlaw

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Re: JEF - Jefferies Group
« Reply #81 on: November 04, 2011, 01:35:47 PM »
Txlaw -- those are the exact questions and answers.

Even better -- I would encourage all to listen to the conference call so they can hear management hem and haw through the q&a.

And Txlaw -- why don't you answer the following for us based on your "reading" of the SEC filings and the transcript with direct, specific answers -- feel free to cut and paste exactly from management comments and SEC filings.  (this should be interesting given the BAC experience)  Reality will show you can't provide anything more than vague rhetoric offered by management.


What good is a hedge if it doesn't work when you need it most?

What good is citing high inventory turnover when the inventory doesn't turn during periods of stress?

Even if it's just roughly, what was maybe the percentage of impacts of secondary trading versus prop and then inventory marks, even if it's just generally speaking? I mean, was one disproportionately impactful than any other?

And then just one last for me on the comp ratio, I mean clearly jumped up in the quarter. Revenues were down. For the nine months, it's about 60%. I mean, if we assume I hope not but sort ofstatic level of revenues going forward, is the 3Q absolute number of comp, kind of sticky?

Okay. So even though it's happened a few quarters in a row, it's really just about when clients
are looking to transact?

How did the convert market collapse but JEF avoid losses?


How is "No direct answer" the exact answer given in the CC?

Reality will be understood by those who actually read the filings and the available CC transcripts.  Thanks Ben for attaching them.

I already know how I interpret the CCs and quarterly filings.  I'd like to hear from folks who do not have a dog in the fight (I now own JEF) whether they agree with your (Munger's) interpretation.


fuluvu

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Re: JEF - Jefferies Group
« Reply #83 on: November 07, 2011, 06:34:34 AM »
JEF reduces Sovereign Debt  in a single days!
Jefferies Reduces Gross Holdings Of Sovereign Debt Of Portugal, Italy, Ireland, Greece, And Spain By 49.5% In Today's Trading In Europe

rijk

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Re: JEF - Jefferies Group
« Reply #84 on: November 07, 2011, 07:02:09 AM »
Jefferies Cuts Holdings Of European Sovereign Debt
Last update: 11/7/2011 9:42:16 AM
DOW JONES NEWSWIRES
Jefferies Group Inc. (JEF) reduced its gross holdings of Portugal, Italy, Ireland, Greece and Spain sovereign securities by 49.5% since the close of business Friday, a move it said resulted in no meaningful profit or loss.
"We undertook this reduction in our holdings solely to demonstrate the liquid nature of this market-making trading book," said Chairman and Chief Executive Richard Handler and Executive Committee Chairman Brian Friedman in a joint statement. "We will now resume our normal market-making activities and serve our clients around the world."
Shares were up 7.3% at $12.95 in early trading and are off 52% this year.
The investment bank was dogged last week by questions about its European exposure. Jefferies disclosed on Friday a $2.4 billion long position and a $2.3 billion short position to European nations including Italy, Spain, Ireland, Portugal, and Greece. Its net cash exposure to the region at the time was $91 million.
The company said Monday its trading positions in the sovereign securities were reduced by about $1.1 billion long and $1.1 billion short.
Jefferies' current net exposure to these sovereign securities is currently $59 million, or 1.7% of shareholder equity.

Grenville

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Re: JEF - Jefferies Group
« Reply #85 on: November 07, 2011, 07:26:23 AM »
I spent the weekend reading the 10-K, was hoping someone here could shed light on who the European bank is that supports the commodity business.

Here's the info from the K: p.121 of the 2010 10-K
"JFP maintains a credit intermediation facility with a highly rated European bank (the "Bank"), which allows JFP customers that require a counterparty with a high credit rating for commodity index transactions to transact with the Bank.  The Bank simultaneously enters into offsetting transactions with JFP and receive fees from JFP for providing credit support."

Grenville

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Re: JEF - Jefferies Group
« Reply #86 on: November 17, 2011, 05:56:43 AM »
Nice commentary on Jefferies on Bloomberg. Recent quotes from Handler and Friedman.

http://www.bloomberg.com/news/2011-11-17/jefferies-ceo-sees-turmoil-easing-as-mf-global-comparison-fades.html

oddballstocks

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Re: JEF - Jefferies Group
« Reply #87 on: November 17, 2011, 07:08:45 AM »
So I saw Jef is dropping like a rock again this morning.  I've read through this thread and the business seems decent, they unloaded their European Sovereigns eliminating that risk.  So what I'm trying to understand is what is the bear case here?  Why is this stock being punished?

It seems like this is a classic panic play, I don't mind speculating on this, but I can't get my head around why it's so hated if they've worked to cut/eliminate exposure.
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nkp007

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Re: JEF - Jefferies Group
« Reply #88 on: November 17, 2011, 08:29:45 AM »
Anyone looking at the debt? Yielding above 10%.


scorpioncapital

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Re: JEF - Jefferies Group
« Reply #89 on: November 17, 2011, 08:31:03 AM »
The debt is an amazing deal. 10% for 10 years. If you leverage up 50% that's 15% return. If debt is yielding this, the stock could yield even better!