Nnejad

You all do realize that NBSK pulp prices have fallen $200 in the last 6 months, effectively taking the run rate annual cash flow for FBK from 50 million to (optimistically) 10 million.

Generally, a vast majority of the energy created at kraft pulp mills is a result of burning black liquor, which results from the kraft pulp-making process. My gut instinct is to say that the increased capacity in this case is also tied to this, especially given the margins; yet i guess it is possible these are wood-burning generators.

Here's one problem with the "let's separate the power from the pulp business" idea - the energy business relies on the pulp business continuing to operate. No pulp business, no energy revenue.

What could be more important than "a bad thing" which makes up 50% plus of China's GDP? Or $3.5 billion of world GDP..

Thanks for pointing this out Packer. I am definitely adding the Wasatch-Hoisington reports to my reading list. Nick

Ya, basically I think post Dodd-Frank, certain securities (think of them kind of like preferred shares) no longer classified as equity, which means that banks can no longer include them when they present capital ratios to regulators. Because of this change in capital treatment, the value of these securities became less valuable to Wells, and it seems they had the foresight to include a buyback provision in case something like this should happen.

Sorry I should have been more clear. I think this law firm has totally jumbled up its paperwork. The way I read it, they are accusing Fairfax Financial of being in the for-profit education business. I googled Penn Foster and got a career training college.

Okay, I've been a shareholder of Fairfax for a long time, but uhm... what??? http://finance.yahoo.com/news/Gilman-Pastor-LLP-Announces-iw-2469742959.html?x=0 The Complaint alleges that Fairfax violated federal securities laws by failing to disclose the following facts: (i) the Company's revenues and earnings were negatively impacted by increased competition in its marketplace, including from companies with lower cost offerings; (ii) a number of significant operational problems existed at the Company that negatively impacted its business; and (iii) the Company had shifted its focus, and a significant amount of resources, away from its core higher education readiness and Penn Foster core businesses in pursuit of unproven projects to the detriment of its business, financial performance and prospects. As a result of Defendants' misleading statements, shares of FFH traded at artificially high price levels. Then on March 22, 2006, Fairfax revealed that the Securities and Exchange Commission ("SEC") had subpoenaed records of all of Fairfax's finite reinsurance contracts in the previous year. Consequently, shares of FFH dropped significantly... In fact, all three points don't sound anything like the Fairfax I know.

That statement gives him far too little credit. He bought stocks agressively when the S&P was in the 700's. He hedged at 1060, and today we're at 1170, but arguably, he's got $1 billion (11%) in bond gains just this quarter.

What "change in customer mix" means for the receivables build is likely that they are shifting towards more international customers. NA paper demand has been down 4.5% this year, whereas the rest of the world is growing; and typically days of sales outstanding increases as you sell to farther international customers.

Hey Liberty, hey abcd, The Nasdaq data works for what I need. As it turns out, shorts are piling onto another company of mine. Thanks everyone.

Is there a way to find monthly data regarding the amount of short interest in a stock ?

104 million in expense this quarter for buying back the debt

News articles are now flooding with details regarding the B of I recapitalization. First off, Fairfax is investing nearly US$420 million of its own capital into the deal. This immediately makes it one of its larger positions. According to Mr Watsa, “the market’s view of Ireland is wrong.” He praised them for taking drastic austerity measures quickly, as opposed to many of its other European peers. Of the six original domestic lenders in Ireland, two have been shut down, another two have merged, and the fifth has been nationalized by the government. Bank of Ireland (if it survives) will thus be situated in an attractive oligopoly position once the crisis is past them. Kennedy Wilson helped first find the deal. Their group has lately been busy purchasing Irish properties out of foreclosure, reasoning it to be an attractive long-term investment. Whatever their reasoning, it undoubtedly helped Fairfax get comfortable with BoI's loan book. Two other direct quotes I thought worthwhile: 1. Fairfax’s team was left with the impression that the bank has taken larger writedowns in its portfolio of troubled real estate assets than even a worst case scenario would likely suggest, while the recapitalization plan should boost the bank’s Tier 1 capital level to a strong 15 per cent. The bank had been running its property portfolio through scenarios based on what happened in Nevada, the state hit hardest by the U.S. real estate crisis." 2. Mr. Watsa remains more of a bear about the U.S. and other parts of Europe. “We continue to be nervous about the economies in Europe and the United States,” he said. “We have very little ammo left – interest rates are at zero – and deficits are high and coming down, meaning government spending is coming down. We have to digest the booms of the past and it may take many years for that to happen.”

You know, I haven't looked at Sino again for years, but I think MW might just be confusing scandal with a crummy economic business (from a return on capital perspective). As I remember the model, it was: buy trees and land for X, sell trees for X, and maybe in the far future get a small value Y from replanting. Doesn't mean the timber is fake, just that the 4 billion invested is only worth 4 billion.

Thumbs up.

Hahaha

A majority the goodwill comes from the Zenith acquisition. I think its approximately $600 million there, 200 at ORH, 100 mil at NB, and the rest is the other recent international acquisitions.

Well, that's one opinion. Then again, nearly all of the goodwill came over the last two years... You should probably check what brought up that goodwill value.

But then, there are the $15 per share in fair value gains that are excluded from that measure.

According to my friend, a nice two bed room in Shanghai or Beijing will cost you about $1000 a month. Not bad... for a US income-earner.

You're not using a full year's worth of post-merger data. If you include the acquisition for a full year, you get (off the top of my head) about 2 billion in CFO, 750 million in cap. ex., and this doesn't inclcude 300 million in expected synergies. 1.2 to 1.5 billion in FCF. Check the presentation in investor relations.

Anyone want to take a stab at why they hold so many insignificant stakes in so many companies?

Why is he so vocal about his short positions? And then, reports them to the SEC?

Just to clarify, I'm pretty sure Partner was saying "No" , you are not wrong. Max exposure for FFH is the amount spent.