bathtime

JSArbritage - thanks, that makes sense. I got lost in the details.

JSArbitrage, you make some fair points. I find it unfortunate that the government has taken little civil and criminal action. I think that would be for the good of the country. Here's a good article on the case: http://newsandinsight.thomsonreuters.com/Legal/News/ViewNews.aspx?id=34198 And a recent Walnut Place court filing which includes their legal argument: http://newsandinsight.thomsonreuters.com/uploadedFiles/Reuters_Content/2011/12_-_December/walnutvcountrywide--MTDresponse.pdf I'm not so sure whether much good for the country will come out of this legal battle. I read through the above filing and was left with the feeling it just seems to come down to lawyers using very fine legalese to battle over money. One excerpt from page 6 of the Walnut Place argument: --- The Walnut Place entities own securities issued by two of Countrywide's trusts. Concerned by widespread reports about the poor quality of Countrywide's loans, Walnut Place spent many hundreds and thousands of dollars to investigate the true quality of the loans in the two trusts. It found that hundreds of loans in each trust were not of good quality and breached several of the representations and warranties that countrywide had made about them. --- At this point I wish they had inserted, "We were shocked, I tell you, shocked!" On page 12 of the document a crucial argument is discussed, which is what comprises an "Event of Default." I'm no expert, but on a cursory reading I don't buy the Walnut Place argument on that question from a "common sense" reading of the paragraph, which is not to say that they can't prove their point with enough legal argument, which they provide aplenty.

From the article: --- "In a May court filing, Bank of America said that Baupost sent letters to the Bank of New York Mellon, claiming it was a certificate holder and that loans in two trusts did not comply with representations and warranties made by Countrywide Home Loans. They said appraisals were inflated and other information had been misrepresented. Baupost demanded the trustee give notice of the alleged breaches to Countrywide, according to the document, and require Countrywide to repurchase the loans. On December 21, 2010, the trustee received a letter concerning one of the trusts from entities including the "Walnut Place" entities." --- It's not as if "Walnut Place" was ignorant of the nature of these MBS when they bought them. To a lot of people the optics of this will look like another case of the rich getting richer because they know how to game the system. While many working people are struggling to make ends meet, a billionaire with a few good lawyers can make hundreds of millions for his company in a settlement over acts that hurt those working people.

Thanks bonechip1, good watch!

Hmm, this seems brazen. Let us hope that Klarman announces that Walnut Place is the name of a low-income housing project funded by the settlement proceeds. Baupost was looking opportunistic on their investment to turn farmland into a limestone quarry : http://www.inthehills.ca/2009/09/back/melancthon/ I thought that Klarman operated at a higher ethical level than others on Wall Street, not so sure now.

10% per their latest presentation.

Anything is possible, but I have a hard time believing this would happen in an election year. It would be red meat for the Republican nominee to paint Obama as against jobs, domestic energy, etc.

Cool Microsoft vision of the future: http://www.kurzweilai.net/microsoft-offers-a-glimpse-into-the-future-of-productivity

Thanks, that was a great read. MHK selling for $43 now and he bought it at $58, perhaps a goo dbuy. CRI selling for near his purchase price.

Anyone buying BP? Can buy it at 15% less than Klarman. I'm wondering what the likelihood is of the dividend increasing dramatically once Macondo is in the rear view mirror. If the dividend was restored to its heights, the yield would be 9.2% (currently 4.6%). Based on S&P's projected 2012 earnings stock is trading at a forward P/E of 4. Book value is around $34/share I believe.

Ross, Do you know of a good link summarizing the Alere thesis? Always good to look at a Klarman stock on sale. I couldn't figure out exactly why Klarman bought ANV recently, so I didn't buy any, but it has far outperformed other gold stocks lately.

Here are employee reviews of Salesforce, in case it's useful: http://www.glassdoor.com/Reviews/Salesforce-com-Reviews-E11159.htm

I'm glad to see that some here own FTP, thanks for the useful input on it. I've been toying with taking a position at these prices, though it's hard to have missed the big run. In my research on the company I found this interesting transcript of Wasilenkoff testifying before the Canadian government. He talks about FTP's existing businesses, but it also gives a feel for his broader financial and intellectual acumen. http://www.parl.gc.ca/40/3/parlbus/commbus/senate/com-e/agri-e/07eva-e.htm?Language=E&Parl=40&Ses=3&comm_id=2 Rumors in the press now of FTP buying a mill from Domtar to convert to dissolving pulp. http://www.radio-canada.ca/regions/abitibi/2011/04/12/002-domtar-relance-lebel-sur-quevillon.shtml