Author Topic: JEF - Jefferies Group  (Read 604676 times)

Mungerish

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Re: JEF - Jefferies Group
« Reply #1490 on: May 24, 2018, 09:27:04 AM »
 I was at the meeting and it was a nothing burger in terms of any new information. Perhaps the worst LUK meeting I have ever attended in terms of Q&A...Yet the highest turn out in terms of shares voted in favor of the name change, etc.

This was not the only paradox

They are trying to simplify the LUK/JEF story and get analyst coverage, which is good. There are lots of good things happening which have all been previously disclosed. The irony is that they still have the meeting in a basement with no web cast or transcript...Where they talk about getting more coverage. This is my main bitch.

Handler mentioned that Joe and Ian were/are legends, which is true. Brian chimed in that value has way under performed growth and that is part of the reason they lag in share price. They are all frustrated with the share price and that is why they have taken to buying in the stock now that they have excess liquidity and are ready for the next down turn in that sense.

 The real reason the stock under performs in my view is that they are NOT Joe and Ian even though they have done a very good job with the  hand they were dealt....So they can't get away with doing the bare minimum of being a public company and get a decent share price. Joe and Ian could get away with that.... ( Meaning no quarterly calls, AM in a basement, one investor day per year in spite of having a very complicated story) The real frustration for me is that they are in the business of employing analysts, raising capital, underwriting securities, etc....Surely they do not need the likes of me to tell them this.

My thesis is that they need to become more "promotional" in their view...which I would call more traditional.... and highlight the good things they have accomplished and I believe they will. It shouldn't be trading where it is and they are need to change that by owning the fact that they need to behave more closely to their peers in terms of investor relations.

The fundamentals of why I think its undervalues have all been discussed here so I'm not going to repost any of that. Cheers!


benhacker

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Re: JEF - Jefferies Group
« Reply #1491 on: May 24, 2018, 09:46:05 AM »
Hey M,

I appreciate you sharing.

"My thesis is that they need to become more "promotional" in their view...which I would call more traditional.... and highlight the good things they have accomplished and I believe they will."

However, I agree with much of what you say, the remedy here, I disagree with.

I think you need to communicate clearly and honestly about your business... they do it ok, full transparency IMO, and no need to promote.  It won't change anything long term, and probably would do much in the short term.

I see no irony in them helping others capital raise but don't do the same for themselves.... because they are not raising capital.

Buybacks in size are the answer to this situation, again, IMO.

Again, my 2 cents... probably worth less than that.
Ben Hacker
Beaverton, Oregon - USA

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Re: JEF - Jefferies Group
« Reply #1492 on: May 24, 2018, 09:51:12 AM »
Just to quote the BusinessWire link above:

Quote
Jefferies’ CEO, Rich Handler, and President, Brian Friedman, noted, “Changing our name to Jefferies Financial Group Inc. reflects that we are now a diversified financial services company, and Jefferies is by far our largest business and our engine of opportunity. We will continue to use the wonderful Leucadia name in our asset management and merchant banking activities where its reputation for long-term value creation is widely recognized.

“Jefferies Financial Group Inc. better reflects who we are today and going forward, materially aids the brand recognition of our Jefferies investment banking and trading operations, and unifies our presence and our prominence in the financial community.”

So since they're seeing Jefferies as largest and engine for opportunity, they'll probably put more capital into it? Like others are saying, Rich and Brian are not Ian and Joe. I doubt they can emulate Ian/Joe. Rich and Brian have always been in finance than turn around guys. Even though LUK acquired JEFF, I think it's becoming the other way around.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

LowIQinvestor

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Re: JEF - Jefferies Group
« Reply #1493 on: May 24, 2018, 09:51:53 AM »
Thanks for sharing your thoughts on the annual meeting & strategy moving forward!

Ironically the volume in JEF today ( their debut as Jefferies) is insanely low.

I agree they need to be a little more visible.

scorpioncapital

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Re: JEF - Jefferies Group
« Reply #1494 on: May 24, 2018, 12:54:43 PM »
If they hired me I'd suggest

1. Sell everything, fire (almost) everyone, reduce compensation to minimum.
2. Buy BRK or S&P500 index and manage the equity-cash ratio as you feel fit.
3. Go play golf and I suspect the results will be equal or better than what they have done or plan to do over the next decade.

However I think 'dumb' advice like this doesn't get much respect from the 'intelligent' investment programs they are running.


benhacker

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Re: JEF - Jefferies Group
« Reply #1495 on: May 24, 2018, 02:21:03 PM »
Undervalued:

Quote
So since they're seeing Jefferies as largest and engine for opportunity, they'll probably put more capital into it? Like others are saying, Rich and Brian are not Ian and Joe. I doubt they can emulate Ian/Joe. Rich and Brian have always been in finance than turn around guys. Even though LUK acquired JEFF, I think it's becoming the other way around.

They started dividend-ing out cash from JEF recently (to holdco)... how do you frame that into the context of what was said above?

I'm seriously curious, I have my own opinion, but it seems necessary to juxtapose actions/words...
Ben Hacker
Beaverton, Oregon - USA

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Re: JEF - Jefferies Group
« Reply #1496 on: May 24, 2018, 02:38:57 PM »
Undervalued:

Quote
So since they're seeing Jefferies as largest and engine for opportunity, they'll probably put more capital into it? Like others are saying, Rich and Brian are not Ian and Joe. I doubt they can emulate Ian/Joe. Rich and Brian have always been in finance than turn around guys. Even though LUK acquired JEFF, I think it's becoming the other way around.

They started dividend-ing out cash from JEF recently (to holdco)... how do you frame that into the context of what was said above?

I'm seriously curious, I have my own opinion, but it seems necessary to juxtapose actions/words...

In the past, JEF didn't pay any meaningful dividends. They kept it constant. Looking from history, it's seems likely that they will keep dividend at .10 until who knows when. For the past few acquisitions, all of them have been related to financial/forex companies. I don't really care what kind of companies they invested in as long as it produce good returns. Now that they started to build some nice cash cushion, I guess we'll see what kind of companies they'll purchase.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

benhacker

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Re: JEF - Jefferies Group
« Reply #1497 on: May 24, 2018, 03:56:37 PM »
Uv, I’m referring to sub->holdco dividends. Not shareholder dividends. If Jefferies (the sub) is paying dividends to jef holdco... how do you think that aligns to handlers comments.

If it’s not clear you can ignore. Typing from phone. ;)
Ben Hacker
Beaverton, Oregon - USA

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Re: JEF - Jefferies Group
« Reply #1498 on: May 24, 2018, 04:13:18 PM »
Uv, I’m referring to sub->holdco dividends. Not shareholder dividends. If Jefferies (the sub) is paying dividends to jef holdco... how do you think that aligns to handlers comments.

If it’s not clear you can ignore. Typing from phone. ;)

I get it. I don't think it matters anymore right because now it's all Jefferies? In the past there was discussion whether Handler will ever sell JEF, I doubt this will happen ever. Maybe I am wrong, I hope I am wrong. Let me just tell you that if this thing hits 45 again, I am reducing half lol.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

Parsad

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Re: JEF - Jefferies Group
« Reply #1499 on: June 06, 2018, 12:12:57 AM »
Just a heads up...the old LUK and JEF threads have now been merged into this thread.  Cheers!
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