Fairfax 2017

[wondering]

as per usual, Fairfax declares dividend $10/shares US. date of record Jan 18, payment date Jan 25

 

http://www.fairfax.ca/news/press-releases/press-release-details/2018/Fairfax-Declares-Annual-Dividend/default.aspx

[wondering]

sorry the subject title should read Fairfax 2018

[petec]

Might be worth changing the title given there is already a Fairfax 2017 thread.

 

On a 2018 topic, worth highlighting BBRY is worth $1.3bn to Fairfax at yesterday's closing price, assuming conversion of the bonds. Fairfax has much greater upside exposure than it has downside risk given the convert.

[Luckyone77]

Might be worth changing the title given there is already a Fairfax 2017 thread.

 

On a 2018 topic, worth highlighting BBRY is worth $1.3bn to Fairfax at yesterday's closing price, assuming conversion of the bonds. Fairfax has much greater upside exposure than it has downside risk given the convert.

 

How much did they pay for it?

[Dazel]

 

Resolute has quietly tripled....as well.

 

I am betting (large) on Fairfax redemption in 2018...Prem you have talked the talk now walk the walk please! The hold co is now loaded with cash lets see the share count come down substantially in 2018! I will call FFH $1000 this year.

 

Cheers and Happy New year to all!

 

Dazel

[petec]

Might be worth changing the title given there is already a Fairfax 2017 thread.

 

On a 2018 topic, worth highlighting BBRY is worth $1.3bn to Fairfax at yesterday's closing price, assuming conversion of the bonds. Fairfax has much greater upside exposure than it has downside risk given the convert.

 

How much did they pay for it?

 

Good question. from memory (which may well be wrong) they averaged $16-something for the equity. But, above $10, over half their equity now comes from the convert and I don't think that's included in the $16 number. So they are probably around breakeven on a ?5? year position. I'm not saying it has been a great investment. I'm highlighting a) its size now, b) the recent rise, which will be partly hidden in BV because of the convert, and c) the skewed risk in the position because of the convert.

[Valuehalla]

Thats not totally correct, but they paid app. 14,70 US$ per Blackberry share

 

Q                       Price         Total

Q3 10 2,0650 $49,39 $101,99

Q2 11 6,3083 $28,82 $181,81

Q3 11 3,4250 $20,33 $69,63

Q4 11 1,0000 $14,49 $14,49

Q1 12 14,0502 $14,68 $206,26

Q3 12 25,0062 $7,52 $188,05 AVG Buy

51,8547 $762,22                 $14,70

 

i AM NOT SURE IF THIS IS CORRECT, i HAVE THE FIGURES FROM DATAROMA

 

[petec]

Thanks. They might have sold some then because I think they have 46.7m now.

 

And then, when they convert the bond they get 50m at $10 so their average all-in will be in the $12's, I would think.

[Valuehalla]

Yes, they sold a few, but 14.70 US$ was the avg. buying price.

 

So total avg buying price is 12,27 US$ and total quantity 96,7 m now.

 

BB marketprice today 14,40 US$ = already 206 m unrealized gains

[StubbleJumper]

Yes, they sold a few, but 14.70 US$ was the avg. buying price.

 

So total avg buying price is app. 12,35 US$ and total quantity 96,7 m now.

 

BB marketprice today 14,40 US$ = already 198 m unrealized gains

 

 

"Already" $198m in gains?  I hate to say it, but we've been waiting 6 or 7 years to see those gains!  ;)

 

But seriously, for a long time, this one was looking like a permanent loss of capital, so it's nice to see it back in the black.

 

 

SJ

[Valuehalla]

I had to correct a little bit my figures: see above.

 

But you are right, though now it looks like a happy end is approaching.

 

Avg holding time of the shares are app. 6 years.

[Dazel]

 

Not great investments for sure but Resolute, Blackberry, and Eurobank were all left for dead...very possible to recoup a couple of Billion in book value from their bottoms and possibly more depending on how we go from here.