JEF - Jefferies Group

[benhacker]

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.

[undervalued]

Just to quote the BusinessWire link above:

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.

[LowIQinvestor]

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]

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]

Undervalued:

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...

[undervalued]

Undervalued:

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.

[benhacker]

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.

[undervalued]

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.

[Parsad]

Just a heads up...the old LUK and JEF threads have now been merged into this thread.  Cheers!

[greenwave]

Just a heads up...the old LUK and JEF threads have now been merged into this thread.  Cheers!

---
" Jefferies Financial Group Inc. Announces Second Quarter 2018 Results
Business Wire   Business Wire•July 26, 2018
NEW YORK--(BUSINESS WIRE)--

Increases Share Buyback Authorization by Additional 25 Million Shares,
Having Repurchased over 24 Million Shares in the Second Quarter

Increases Quarterly Dividend by 25% to 12.5 Cents Per Share....."
-------

Hopefully the buybacks and dividend increase are indicative of a long term sustainable trend towards intrinsic value .

greenwave

-----
 'At December 31, 2017 , we have recognized net deferred tax assets of $743.8 million. '

Maybe this finally becomes a useful asset over the next few years .