FairFacts

Blackberry to get $600 million ($450m in cash, $150 in debt). I wonder if they will pay down some or all of the convertible debt to Fairfax? https://finance.yahoo.com/news/blackberry-sell-patents-related-mobile-125713253.html

Alright, just a comment on the divi policy, not the biggest of deals. Meanwhile (conspiracy theorist hat on) why is the Q3 earnings release date late????

I don’t disagree but it’s a non-standard dividend policy, why not pay him a proper salary like everyone else. The dividend policy could then be ‘normalized’. As it is it’s just another ‘wrinkle’ (exception or anomaly)….

Its just one more 'wrinkle' in the Fairfax story. The dividend policy is set (firmly) to accommodate the founder.

Another thing that bothers me is their very inflexible dividend policy (its been fixed at $10/share for years). It means its neither a dividend appreciating play nor a steady income play (in real terms).

BlackBerry The Trade: BlackBerry Limited (NYSE: BB) President and COO Tom Eacobacci sold a total of 171300 shares at an average price of $9.35. The insider received $1,601,655.00 from selling those shares. (copied from yahoo).

RFP up 8% today on double normal volumes.

No brainer….

Indian Life Insurer IPO at potentially $109 billion...... https://www.yahoo.com/finance/news/india-seeks-109-billion-valuation-084211913.html

Blackberry announces Secure Authentication for Microsoft 365. https://finance.yahoo.com/news/blackberry-delivers-secure-modern-authentication-120000568.html Could this be significant for BB?? Show me the money!

A big difference in Woods favor is that she has publicly laid out her analysis in some detail. The ArkInvest price target detailed analysis is available on the www.ark-invest.com web site free ( I can’t insert the URL for some reason). I you go to their website search on Tesla. in general Wood’s strategy of investing in disruptive innovation has merit (think Digit). She sees a convergence of technologies that will catapult industries into a new era of advancement over the coming 10 years.

SJ, I was referring to this article Why the Worries About the Outlook of BB Stock Are Way Overdone | InvestorPlace and 3/4 of the way down....... "RBC Capital recently suggested that BlackBerry could obtain around $1 billion from the deal, but I think that the total could easily reach $2 billion to $3 billion."

Having slated the BB investment as a complete dog I am aware that there are murmurs of an imminent deal to sell the old patents relating to physical devices and messaging. If BB were to pull this off and realize over $1bil. how might that affect Fairfax’ view of their investment?

I wouldn’t be surprised if they are not considering a 5% buyback similar to the Fairfax India offer. The only issue would be at what price they could expect it to be a success. An offer of $480 per share might get them there.

BB - if you knew nothing about software 10 years ago and invested in the top three software companies Microsoft, Oracle and SAP you would have a +500% return. Don’t even bother to compare with AAPL.

Atlas announced that it is repaying $300mil to Fairfax on 8/23 (yesterday). I wonder where on the balance sheet this was and if it will filter through to holding co. cash.

“the trend is your friend”, short-term and long-term are relative, “‘the market can stay irrational longer than you can stay solvent”, the long-term is a series of ‘short-terms’, the majority, I sense from the critical thinkers on this board think that things are in the upper looking tragectile. BB and Eurobank ?, Digit the Indian unicorn (PW has poured scorn on these ‘unicorns’), is the whole just a mishmash or over complicated. Mr Market may not be as good at pricing everything at the moment due to the WW pandemic and it’s impact. We, as the students of value investing must exercise caution, why do we accept a $54 per share increase in BV due to Digit? Some say we should buy/hold now and sell into a BV above x1, why? I’m constantly re-reading the AR and the stated “grow BV by 15% per year” leading goal. ‘if we can’t get to a 1xBV by the end of this year I’m going to unwind……

My largest position (again) ....don't get me wrong....but BB??....why not sell a little just to loosen up their thinking....share price is at a 5 year low excluding the pandemic....I don't know what it will take to catalyze the stock price back to life (above 1x of bv).

I fail to understand why Fairfax doesn’t seem to perform basic portfolio management practice. With regard to BB why not take some profit, they could easily sell 20% of their total gross position over the coming months without drawing too much negative attention (for BB). Prem, on the Q2 call was asked about BB, he replied that Fairfax is an insider and therefore had certain restrictions on the timing of transactions and ‘we support John Chen’. In my view they could still support John Chen and reduce their exposure due to ‘portfolio management’. my 2 cents….

Xeres, no offence intended. The Market was closed on Monday/

Public holiday in Canada on Monday. The analysts were all in holiday mode on Friday and its only dawning on them now how good things look.....

This is a fantastic thread, lots of differing opinions, I like it a lot. On Fairfax overall I often ask myself is it just a bit too complicated. On Blackberry I often give up trying to understand what is the thinking behind holding on to it for so long. On Prem I think we have a talented leader who's demonstrated talents far outweigh any weaknesses. I find it a little ironic that one of the big 'hopefuls' for a big gain is a Unicorn (Indian digital insurance startup DIGIT). Great stuff I look forward to reading the commentary after the results release.

and a small thorn in Prem's side with regard to exec. pay at Blackberry....

High level scan of the shipping industry, certainly pertinent to ATCO and its seeming very capable management.....

Just a thought, I have no direct knowledge of anything like this.... Could Fairfax have entered into an automatic sale plan with a broker with respect to its BB holdings in order to avoid any blackout restrictions under certain circumstances (such as a Reddit-fed frenzy). As part of its annual announcements Fairfax has in the past used an automatic share purchase plan of its own stock during the restricted period. a hopeful thought, maybe?