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Alekbaylee

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    SFK pulp

    in Fairfax Financial

    Posted

    http://www.tradingmarkets.com/news/press-release/ffh_frfhf_fbkzf_fairfax-receives-rights-pursuant-to-fibrek-inc-rights-offering-993494.html

     

    Fairfax Financial Holdings Limited (TSX: FFH | PowerRating)(TSX:FFH.U) has been issued, in respect of its current holdings of common shares ("Common Shares") of Fibrek Inc. ("Fibrek"), 17,443,300 rights ("Rights") to purchase an aggregate of 7,635,500 Common Shares at a price of $1.01 per Common Share pursuant to Fibrek's rights offering (the "Rights Offering") being conducted under a short form prospectus dated June 8, 2010.

     

    Fairfax currently owns and controls, in the investment portfolios of its insurance subsidiaries, 17,443,300 Common Shares, representing approximately 19.3% of the total Common Shares outstanding. Fairfax is also party to a standby purchase agreement (the "Standby Purchase Agreement") dated May 12, 2010 with Fibrek pursuant to which Fairfax has agreed, subject to certain terms and conditions, to purchase, at the subscription price of $1.01 per Common Share, all of the Common Shares not otherwise purchased pursuant to the Rights Offering at the expiration time on July 15, 2010. Assuming that no Rights are exercised pursuant to the Rights Offering, other than those owned and controlled by Fairfax, and that Fairfax is obligated to purchase the unsubscribed Common Shares under the Standby Purchase Agreement, Fairfax would own and control, in the investment portfolios of its insurance

    subsidiaries, 57,046,148 Common Shares representing approximately 43.9% of the total Common Shares outstanding.

     

    Fairfax received the Rights pursuant to the Rights Offering. The Standby Purchase Agreement has been entered into for investment purposes. Fairfax continually reviews its investment alternatives and may purchase additional Common Shares or other securities of Fibrek from time to time in accordance with applicable laws.

     

    Fairfax Financial Holdings Limited is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

     

    SOURCE: Fairfax Financial Holdings Limited

     

    Bronco

    in General Discussion

    Posted

    Dear Sanj,

     

    may I take a moment to say how blessed we are to have you as the administrator of our board.

    Thank you from the bottom of my heart for your evenhandedness that has given us the best investing

    forum on the Internet.

    I too believe that what Sanjeev is doing here is very important.

     

    I owe a great debt to you all, I have learned much and look forward to continuing to do so.

     

    I agree with you 200%

    WTM Preliminary Estimates of Losses RE Chilean Earthquake and Xynthia

    in General Discussion

    Posted

    HAMILTON, Bermuda, March 24 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) estimates that its total net losses resulting from the Chilean earthquake will be in a range of $55 - $145 million pretax, or $40 - $105 million after tax. This range estimate, which is subject to foreign currency fluctuations, is based on industry insured loss estimates for the Chile quake of $6 billion to $12 billion and is net of all retrocessions and reinstatement premiums.  White Mountains' estimated loss from Xynthia is $10 million pretax or $7 million after tax.

     

    http://www.prnewswire.com/news-releases/white-mountains-releases-preliminary-estimates-of-losses-caused-by-chilean-earthquake-and-european-windstorm-xynthia-89045292.html

    Accounting/Income tax question (for Canadians)

    in General Discussion

    Posted

    Alek,

     

    I used the average rate (about $1.14) as most of my transactions were in Feb/Mar of last year when the U.S. dollar was between $1.25 and $1.30 Canadian.  That allowed me to report my gains at about 10-15% less than they would've been using the actual exchange rates.  It is also a simpler way to do the calculations.

     

    If most of the transactions were later in the year ($1.05-$1.10) or if you bought at $1.25 and sold when the dollar was $1.10, the actual rates would be better to reduce you gains.

     

    Using the actual rates would probably work best for most people given that the Canadian dollar mostly got stronger through the year.

     

    Makes sense. Many thanks again.

    Accounting/Income tax question (for Canadians)

    in General Discussion

    Posted

     

    Thanks bonechip1,

     

    I think that answers my question and confirms my gut feeling...

     

    http://www.jamiegolombek.com/articledetail.php?article_id=787

     

    If the Canadian dollar continues to hold strong against the U.S. dollar until the end of the year, you may wish to sit down with your accountant and determine which conversion method gives the best results for you. Next April, that may depend on the amounts you received as well as the timing of those amounts.

     

    For example, say Barb received a total of US$10,000 up to Aug. 31, 2007. Using the monthly average Bank of Canada exchange rate of $1.1147 to the end of August, she would report $11,147 of income.

     

    Digging deeper, we learn that Barb had received US$8,000 of this income on Aug. 8, 2007 (rate $1.0499) and $2,000 back on Feb. 8, 2007 (rate $1.1853). Using the actual exchange rates on the dates Barb received her U.S. dollar income would translate to only $10,770, a reduction in income of $377 compared with the "average rate."

     

    While the average rate method is more convenient, it may be worth the trouble of hunting down those historical rates as it might save you some tax.

     

    Alek

    Accounting/Income tax question (for Canadians)

    in General Discussion

    Posted

    Alek,

     

    I was doing my taxes today and working out the exchange effects too.  Assuming you've got some gains from last year, no capital losses to offset them and your tax bracket is steady from year to year it makes sense to use whichever rate method minimizes your gains.  Why pay more than you have to?

     

    Although it sounds illegal the CRA (our IRS) allows you to use either their published average rate ($1.14197729 for 2009 for US dollar transactions) or the actual rates at the time of the transaction.  There's not a lot of info on their website about it.  I'm just not sure if you can use two different methods for the buy and sell parts of the same transaction.  Anyone?

     

    Thanks Vanshon,

    From your experience, was it better to use the annualized average or the actual exchange rate at the time of the transaction?

    Something tells me the actual exchange rate at the date of the transaction should be better for us (i.e. pay less tax), but I'm not sure and want to avoid doing the whole work for nothing.

    Otherwise, I know for sure that once you choose one method, you have to stick with it, i.e. you can't use both for the buy and sell parts.

     

    Alek

    Accounting/Income tax question (for Canadians)

    in General Discussion

    Posted

    You realize the first method is probably completely illegal...

     

    Scorpion,

    I called the CRA last week and they said I could use any of the two methods. When I asked which one was better, the lady responded "well, it's up to you to decide" or something to that effect.

    Actually, was going to use the annualized average as it's much less complicated than the other method when you have to calculate every transaction almost twice (purchase/sale), but then it seemed to me that, because of the unusual moves of the canadian $ in 2009 (ups and downs), that using the actual exchange rate at the time of the transaction would be better for me (i.e. pay less tax). Hence my question.

     

    I'll check/read all the info/links you guys posted (thanks!).

     

    Alek

    Accounting/Income tax question (for Canadians)

    in General Discussion

    Posted

    Y'all!

     

    Am in the process of filing my 2009 income tax statement and was wondering what would be more advantageous for me re-capital gains : taking the annual average US$-CAN$ exchange rate, or the actual exchange rate at the date of the transaction (buy or sale). The fact is the US/CAN $ exchange rate has moved up and down quite a few times during the 2009, from 1,25 to almost par, so I guess the choice may have a material effect on the check I'll be writing to CRA.

     

    Thanks in advance.

     

    Alek

    zenith

    in Fairfax Financial

    Posted

    Following the completion of the acquisition, Fairfax expects to continue to maintain approximately $1.0 billion in cash and marketable securities at the holding company level

     

    This looks good to me.

     

    Alek

    A Long Squeeze in BRK?

    in Berkshire Hathaway

    Posted

    So I guess my question is how long do we hold out?  I tend to think that IV might be somewhere around $150k for BRK-A, or about $100 for a B-share.  The baby-b shares hit $77.50 yesterday.  Do they have enough legs to hit IV over the next few weeks? I was of the view that I might unload my Bs at some price in the 80s, and then wait for an opportunity to buy back in later in the fall.....

     

    SJ

     

    SJ,

    Looks like you were right...

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