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Showing content with the highest reputation since 07/12/2022 in all areas

  1. I think many people are completely missing what is going on with Atlas. Since the news first hit all of is have learned more. ONE is offering up $1.4 billion to take Atlas private. ONE is the driver of this deal. Everyone, take a deep breath and think about this. This is not a Fairfax deal. Or a David Sokol deal. For Atlas this is a kick ass offer. Because going private offers many big big advantages for Atlas, especially in its current state (big time expansion). Public markets are a big pain in the ass. For the other large shareholders (like Fairfax) going private is also a big win. So what do you do? You support the proposal. It is the rational and right thing to do. This is not screwing anyone. This is how business is supposed to work. i am sorry, but i do not get all the anger on this site about this proposal. It is a business deal. Not that complicated. Atlas stock was stuck; mired in the toilet. Shipping rates could drop through the floor in the coming months. Actually it is pretty likely that shipping rates will come down. Atlas stock could easily have fallen off a cliff from here. For anyone who was paying attention, the stock tracks what is going on with container rates. NOT Atlas as a finance/leasing/capital allocation company. Mr Market WAS NOT DRINKING the Kool-Aid. And despite all the talk about how cheap Atlas stock was pretty much nobody on this board was buying when the stock was trading below $11.00. At least i wasn’t. The bottom line is current Atlas shareholders have been given a gift. An opportunity for a quick, sizeable gain. In the middle of a bear market where the funds can easily be re-deployed into lots of other great opportunities. ————— Many years ago when Odyssey was bought out by Fairfax a majority of my net worth was in Odyssey stock. I welcomed the news of the buyout. At the time i expected the buyout offer (unlike the current situation). Was Fairfax being opportunistic? Yes. Smart bastards. My only mistake was not waiting for the the small bump Fairfax delivered to shareholders to close the deal (very predictable in hindsight).
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  2. They are simply offering a price they are willing to pay to acquire the outstanding shares. I’m sure most of us have placed a low ball bid on the shares of a company we like at some point. Based on their condition, it’s up to the majority of the minority to ultimately make the decision, not Fairfax nor the Consortium. That’s what makes it fair. The sellers decide if they like the price. If you don't like the price, just vote no with your shares.
    1 point
  3. This board makes me smile. COBF when Prem bought at $6.50: oh FFS. Why can’t he just pay up for quality growth like everyone else? COBF when Prem offers $14.45 to minorities: Stop! Thief! He’s stealing the company! 7x future earnings is a perfectly reasonable multiple for a ship leasing company, especially when that multiple might reflect peak earnings (it’s quite possible when contracts roll in 4/5 years they’ll roll onto similar or lower rates, and it’s quite likely the cost of capital rises). ATCO is basically a specialist bank: it applies leverage to a narrow spread between the cost at which it sources and the price at which it supplies capital. It just isn’t worth a high P/E. The reason ATCO is going to be worth more than $14.45 in the future is because Sokol will allocate capital brilliantly, but capital allocation isn’t and shouldn’t be capitalized before it happens. Asking buyers to pay for it up front is nuts. (That’s actually why I liked it - I felt the value would compound nicely for years without it ever getting too expensive.) So, although ATCO is 7% of my portfolio and I’d hoped to own it for 20 years, I don’t think this is a crazy cheap price for the current business and I won’t feel cheated if my minority peers vote to sell. Genuine question, SJ: did you think ATCO was cheap enough to own at $11 a few weeks ago? And if you didn’t, why do you think Prem buying it at $14.45 (but only if the sellers approve) proves that he can’t be trusted?
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  4. Yeah, that would be nicer and more fair to those that don't want to sell and understand the value of the company, but really, in a capitalist market, we're bitching about a company making a capitalist decision?! I loaded up on the stock over the last year, while some on here were bitching about how it was fairly priced considering the industry and possibly deteriorating shipping rates...now people are complaining that one of the majority shareholders also finds it cheap and makes a takeover offer? Crazy! Should I feel bad that I bought shares at $10.25...somehow taking advantage of shareholders who didn't know what the value was? Cheers!
    1 point
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