allycat18
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Posts posted by allycat18
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17 hours ago, Viking said:
It is highly likely that Fairfax will buy back a significant number of shares over the next couple of years. Why?
1.) capital allocation priorities:
- The hard market in insurance is drawing to a close. Funding growth of subs will be less of a priority.
- While debt levels are elevated, the company is not over leveraged. I also expect earnings to be significant in Q4 and 2023 so this will help. So debt reduction is not necessary.
- That leaves share buybacks as the obvious choice. I expect NCIB purchases to be meaningful in Q4. I think Fairfax could take out a million shares quite easily over the next year. It could be much higher.
- We could also see Fairfax continue to take out minority shareholders in 2023. Perhaps they buy another slug of Allied. Or perhaps Brit. Or a slug of Odyssey.
2.) cash flow should be robust. Fairfax will be earning record amounts from underwriting and interest and dividend income. An average of $600 million per quarter moving forward (pre-tax and before minority interests).
3.) future asset monetizations - more are likely coming in 2023.Trading at under US$600, stock is still crazy cheap. My guess is Fairfax will utilize the NCIB in 2023. If so, this could just keep powering the shares higher for an extended period.
Seasons greetings Viking I always admire and value your analysis. With buy backs where would you see the market price December 2023
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Hi all
Just thought I would share Mr. Zechner's wisdom. I don't think he follows Federated or it's holdings too closely.
Unfortunately I think he is view tends to be the same as Mr. Market. They just don't want to see the changes over the last couple of years.
Fairfax 2023
in Fairfax Financial
Posted
Hi all
Do you believe morning stars Horn's comments will put a long term slow down o growth for Fairfax ? Do they have to put a few more quarters of results to see the value progression?