[FFH delisting from NYSE]

I have an Etrade account, and at the moment you cannot hold foreign stocks in your retirement accounts.  That may force me to move to someone like Interactive Brokers if I want to hold FFH for the long term.  I'll have to look into it to see how the pricing works over there. 

 

Does anyone have any other suggestions for those who want to hold FFH in their retirement accounts other than IBKR?

 

Also, this brings up another issue that I've been wondering about for a while.  Does anybody know how tax withholding works for Canadian companies that issue dividends?  Does tax withholding for foreign investors differ if you own a Canadian company via the TSX versus the NYSE?  I've been trying to avoid Canadian stocks that issue dividends because I don't know how the distribution process works.

 

Not asking for tax advice -- just general information about how tax withholding for dividends works for U.S. investors in Canadian stocks.

 

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

[Fairfax Stock this week Part II]

"For What Its Worth"   by Buffalo Springfield

 

Love that song but have to credit wikipedia to remember name

 

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

[Fairfax Stock this week Part II]

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).

[Fairfax Stock this week]

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?

[FFH insiders who buy the new offering of preferred shares]

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

[ORH Revisited]

The link works just fine, thanks.

[SEC Completes Fairfax Investigation!!]

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.

[Mystified]

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.

[Reinsurance capacity falls]

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.

[Yahoo Board - FFH]

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)?

[Reinsurance rates]

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.

[Welcome!]

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