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Strategies / Most insightful letters and transcripts
« Last post by petec on January 27, 2021, 11:48:41 PM »
I'm looking for recommendations on the best company letters or call transcripts for deep insight into trends and sectors.

Who do you feel is really good at clearly laying out what's going on?
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Fairfax Financial / Re: Fairfax stock positions
« Last post by Parsad on January 27, 2021, 10:25:11 PM »
Imagine if FFH does not sell any shares, Chen earns more than $200 million bonus and shares return to $7 per share in the coming months :-)


CEO John Chen could collect more than US$200-million in compensation if recent huge gains in its share price hold up.
- https://www.theglobeandmail.com/business/article-blackberry-share-craze-could-yield-windfall-for-ceo-john-chen/

Mr. Chen is in his eighth year in his turnaround attempts at BlackBerry, and has seen the company’s stock rapidly rise and fall for much of his tenure. But he’s seen nothing like the frenetic trading this month: The shares have quadrupled, including a gain of 80 per cent since Friday. Retail investors in the U.S. and Canada, many participating in a Reddit forum called WallStreetBets, have swept them up in a frenzy of social-media speculation.

Mr. Chen is poised to be a huge beneficiary. When Mr. Chen renewed his employment contract in March, 2018, he received five million performance-based shares that he’d only be able to sell if the stock hit certain thresholds. He earns each block of one million shares if BlackBerry’s share price hits targets in one-dollar increments from US$16 to US$20 (its shares trade in Toronto and New York).

... When BlackBerry awarded Chen the shares in 2018, they traded at US$10.63, and the targets seemed aggressive, but achievable. BlackBerry needed to return 50 per cent to 90 per cent over five years for the awards to kick in, and the stock needed to nearly triple for the big cash award.

It looked much, much harder in November of last year, when BlackBerry traded below US$5.

However, in Monday’s trading, BlackBerry shares blew through all five price targets for the first time since the company made the award. The stock rose from US$14.04 on Friday to touch US$20.83. On Wednesday, it hit US$28.77 in intraday trading, before closing at US$25.10.

Mr. Chen can’t bank the shares just yet: The terms of the stock award require BlackBerrry to average the minimum price points over 10 days of trading. BlackBerry only began topping the minimums Monday, so Mr. Chen hasn’t qualified for any of the payouts yet.

Also, BlackBerry structured the share grant to keep Mr. Chen at the helm for the full five years: The stock “vests,” or can be sold by Mr. Chen, in five annual increments from 2019 to 2023. So even if BlackBerry shares stay up for several weeks, he can’t realize all of the gains for several years.

At Wednesday’s closing price of US$25.10, the five million award shares are worth US$125.5 million. If the US$90-million payment is triggered at US$30, the whole package would be worth US$240-million.

I'm fine with that...as long as BB and Fairfax were able to capitalize on it too!  Cheers!
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Investment Ideas / Re: AMA:AU - Ama Group
« Last post by kab60 on January 27, 2021, 10:07:20 PM »
I agree, it is a very bizarre situation with the CEO suing the Company for repressing his minority shareholder rights. I got tired of their execuses and sugarcoating, but I didn't exactly foresee anything like this. :o

I doubt this is anything like Wirecard, just the nature of the business and Blackstone doing due dilligence and almost buying the Company back in 2018, but their last big acquisition obviously gives some room to hide stuff.

Anyway, the company is pretty cheap if one believes they're not far off their 10 pct. margin targets, and the press release does state things are going well operationally. But I also don't think one gets compensated for the risk of some really bad stuff surfacing, so I'm not at all considering going back in. It's not like the board is helping much with their statement that raises more questions than it answers, so frankly I think there are much better risk/rewards around elsewhere.
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Investment Ideas / Re: KOSS - Koss Corp
« Last post by jschembs on January 27, 2021, 10:06:57 PM »
This one worked out well.

Amazing post. The most comical aspect of all of this WSB shit to me is that it's ending up bailing out deep value guys who rode most of this stuff down to the point where it was effectively stub value. And I say that as a deep value guy who unfortunately didn't own any of these fun exit trades.

QFT.

If only Sears had managed to last to Jan 2021...  ;D

Ain't that the truth. SHLD and JCP would've been some amazing charts.

Edit: nevermind, didn't realize SHLDQ still trades - of course, that was up 113% today.
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Fairfax Financial / Re: Fairfax stock positions
« Last post by Viking on January 27, 2021, 10:04:44 PM »
Imagine if FFH does not sell any shares, Chen earns more than $200 million bonus and shares return to $7 per share in the coming months :-)


CEO John Chen could collect more than US$200-million in compensation if recent huge gains in its share price hold up.
- https://www.theglobeandmail.com/business/article-blackberry-share-craze-could-yield-windfall-for-ceo-john-chen/

Mr. Chen is in his eighth year in his turnaround attempts at BlackBerry, and has seen the company’s stock rapidly rise and fall for much of his tenure. But he’s seen nothing like the frenetic trading this month: The shares have quadrupled, including a gain of 80 per cent since Friday. Retail investors in the U.S. and Canada, many participating in a Reddit forum called WallStreetBets, have swept them up in a frenzy of social-media speculation.

Mr. Chen is poised to be a huge beneficiary. When Mr. Chen renewed his employment contract in March, 2018, he received five million performance-based shares that he’d only be able to sell if the stock hit certain thresholds. He earns each block of one million shares if BlackBerry’s share price hits targets in one-dollar increments from US$16 to US$20 (its shares trade in Toronto and New York).

... When BlackBerry awarded Chen the shares in 2018, they traded at US$10.63, and the targets seemed aggressive, but achievable. BlackBerry needed to return 50 per cent to 90 per cent over five years for the awards to kick in, and the stock needed to nearly triple for the big cash award.

It looked much, much harder in November of last year, when BlackBerry traded below US$5.

However, in Monday’s trading, BlackBerry shares blew through all five price targets for the first time since the company made the award. The stock rose from US$14.04 on Friday to touch US$20.83. On Wednesday, it hit US$28.77 in intraday trading, before closing at US$25.10.

Mr. Chen can’t bank the shares just yet: The terms of the stock award require BlackBerrry to average the minimum price points over 10 days of trading. BlackBerry only began topping the minimums Monday, so Mr. Chen hasn’t qualified for any of the payouts yet.

Also, BlackBerry structured the share grant to keep Mr. Chen at the helm for the full five years: The stock “vests,” or can be sold by Mr. Chen, in five annual increments from 2019 to 2023. So even if BlackBerry shares stay up for several weeks, he can’t realize all of the gains for several years.

At Wednesday’s closing price of US$25.10, the five million award shares are worth US$125.5 million. If the US$90-million payment is triggered at US$30, the whole package would be worth US$240-million.

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Investment Ideas / Re: KOSS - Koss Corp
« Last post by Jurgis on January 27, 2021, 09:50:22 PM »
This one worked out well.

Amazing post. The most comical aspect of all of this WSB shit to me is that it's ending up bailing out deep value guys who rode most of this stuff down to the point where it was effectively stub value. And I say that as a deep value guy who unfortunately didn't own any of these fun exit trades.

QFT.

If only Sears had managed to last to Jan 2021...  ;D
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Investment Ideas / Re: KOSS - Koss Corp
« Last post by jschembs on January 27, 2021, 09:28:33 PM »
This one worked out well.

Amazing post. The most comical aspect of all of this WSB shit to me is that it's ending up bailing out deep value guys who rode most of this stuff down to the point where it was effectively stub value. And I say that as a deep value guy who unfortunately didn't own any of these fun exit trades.
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Investment Ideas / Re: KOSS - Koss Corp
« Last post by stahleyp on January 27, 2021, 08:07:43 PM »
This one worked out well.

Only took 10 years.  ;D

Do you still own it by any chance?
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Investment Ideas / Re: TSLA - Tesla Motors
« Last post by KFS on January 27, 2021, 08:06:33 PM »
Another interesting thing about Tesla is the stock is staying (largely) at the nosebleed price. I would have expected after the spike to see some kind of material reversal. Not so far... Are we at the ‘permanently higher prices’ stage? :-)

It's true - Tesla bulls are definitely more stubborn and dedicated compared to a typical WSB stonk. 

Tesla is more like a cult with members who are always refining their collective cult-narratives and worshiping the almighty Elon. 

Conversely, WSB is more like a purely mindless ant colony - completely retarded on an individual level and almost zero knowledge of any stonk they buy, but collectively they still accomplish amazing things.   ;D
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Investment Ideas / Re: KOSS - Koss Corp
« Last post by enoch01 on January 27, 2021, 08:02:12 PM »
This one worked out well.
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