Tommm50

All Y'all, In looking at the tax forms I see no restriction to owning foreign stocks in an IRA. See http://www.ira.com/faq/faq-14.htm Where do you get the notion it's a problem? Tommm

Absolutely correct, although I mangled the second line it's "into your heart it will creep".

Am I alone in wondering what the heck is going on with the trading of this stock? It has made billions in the face of an epic financial disaster over the last two years, has grown book value at an eye popping clip, just announced a quarter that beat analysts estimates by over $20 dollars a share! Results, it gets zero mention in the trade press for the spectacular performance and the stock actually goes down on higher than average volume. We've all noted the power of the hedge funds and their influence with the trade press, particularly the Wall St. Journal. The market maker on this stock has done weird things in my opinion. Is it possible the hedge funds being sued by Fairfax are wielding their influence behind the scenes? Paranoia strikes deep...into your soul it will creep... (name that tune).

Any thoughts as to the strange behavior of the stock price this week? It's down over 20 points over a couple of days on above average volume. I'd thought it might be speculation the Odyssey transaction would not complete but it has and the stock is down again today. All signs point to a sterling quarter about to be announced next week so I'm stumped. Any insights?

It seems three of the four purchases are trivial and the fourth not substantial either. It's hard to draw any conclusions from this.

The link works just fine, thanks.

I quite agree Card. I can't help but wonder what's going on behind the curtain of the stock trading. Paranoids and conspiracy theorists (I'm trying hard not to be one) can't help but note Fairfax has engaged in a lawsuit against some of the biggest players in the rigged game Wall St has become since Long Term Capital (aka Cassandra) sounded a warning no one listened to. These guys move trillions of dollars without much in controls. It looks very unlikely, whatever the merits of the suit, there will be anything more than lip service to regulating these modern day robber barons. If I had that much money and someone was suing me and threatening everything I have (plus jail time) I might work to hold the stock down (and let Fairfax know it to an unprovable degree) as a bargaining chip to get Prem to call off (or settle for pennies) the lawsuit. There, I've said it, now I feel better.

I must be incredibly naive but isn't the function of the market maker on the NYSE to provide an orderly market in the stock? How do less than 18,000 shares move a stock with millions of shares outstanding by over 4%?? Particularly on a day when AM Best affirms Fairfax's ratings, cites all the improvements (cash, commuted reinsurance treaties, cleanup of C&F's property cat exposure, etc.) and declares the outlook stable. This happens all the time with Fairfax stock.

Stubble Jumper is correct, the property values insured are typically replacement cost, not market value. The replacement cost is usually inching up year on year although the down economy may help a bit on this score. In the face of a major cat replacement costs can spike due to scarcity of raw materials and labor as so many properties need to be reconstructed at once.

Looks like a fresh round of FFH bashers on the Yahoo board. Isn't this traditionally a leading indicator the stock will rise (it's a paradox, but the posters are so inept)?

I wouldn't put too much stock in that kind of statement from an individual reinsurer. Hannover is a "broker market" reinsurer rather than a "direct reinsurer". A direct deals directly with the insurance company a broker market reinsurer goes through an intermediary like Guy Carpenter, Aon Re, or Willis Re. Carpenter is reporting (and their perspective includes all the broker market reinsurers on the placements) January 1 renewals were a mixed bag. Some improvement on Property Cat placements, less on Property Per Risk, and none to speak of on Casualty placements. It's too early to see any significant improvement for reinsurers and certainly not yet for insurers.

Even a neophyte like me can navigate it. Thanks Sanj.