Fairfax stock positions

[Cigarbutt]

There is interesting additional disclosure concerning the 'stock positions' historically held by Fairfax and now held by CVC. The notion of an "asset value loan note" is introduced.

It seems that CVC is now the indirect 'owner' of the assets but Fairfax remains the owner of the assets' risk. The arrangement is effectively equivalent to a total return swap agreed upon by both parties. Fairfax gets both the upside and the downside (it looks like dividends stay at CVC but it's not clear) of the market price movements. In exchange, Fairfax either pays interest on the 1.3B nominal amount or may have structured the transaction so that the 1.3B is at a premium to where fair value of the assets stood when the deal was negotiated (so the interest would be embedded within the notional amount). So regular quarterly cash flows don't occur in relation to the asset price movement but mark-to-market changes are recognized. Also, it appears Fairfax has the possibility to terminate the contract by somehow exchanging 1.3B of cash for the assets (whatever the value of the assets at that time) but the ultimate maturity is at the end of 2022, unless the maturity is extended. Note: in Q3, this guaranteed amount stood at 1.2B as some of the securities held by CVC and part of this deal were sold.

-----

Also related to where Fairfax invests the float and the level of float, from AR 2020: "In the past five years our float [total float] has increased by an average of 7% annually..." and total float per share has just crossed 1000USD per share (25.96B (USD)/25.88M (shares)) and total float per share in 2021 so far has increased by about 8%.

[petec]

9 hours ago, StubbleJumper said:

Net Written was up by more than 25%?  I nearly shit my pants when I saw that. 

 Me too. Wow.

 

9 hours ago, StubbleJumper said:

we need to temper that a bit because there is once again a bit of a quality of earnings question.  Paper gains were recorded for Toys R Us ($85m), Eurobank ($130m) and Singapore Re ($32m).

 

I agree that these items flatter earnings, but IMHO they make book value more reflective of underlying value, so if that's your main valuation metric (it is mine) then I'm happy to see them.

 

9 hours ago, StubbleJumper said:

Why are we not seeing more favourable development?  I had anticipated that the strong price movements over the past few years would have resulted in a bit more cookie-jarring of income.

 

This is key. With luck it means they are reserving conservatively and have stocked their cookie jar for a rainy day. 

[petec]

8 hours ago, maxthetrade said:

 

Sure, you can back out cat losses to get some analytical insight into the business but in the end you have to add a normalized cat loss estimate. If they can't write business significantly below 100 including normalized cat losses the business is a dud. Considering their past record I'm also bit worried about the growth at Brit.

 

This is exactly right but if they didn't break it out, how would you know how to calculate a normalised CAT number? You wouldn't know how much of the long term average was normal and how much was CAT, and I think that helps you judge the risks.

 

Said another way, if they didn't disclose it you can bet your bottom dollar that this board would be full of posts about how they should disclose more to help us understand the underwriting.

[petec]

Being really dull...can we shift the discussion about quarterly results to the Farifax 2021 thread? I find it much easier when each topic is concentrated in one place and I can't be the only one.

[maxthetrade]

13 hours ago, Viking said:

do you own Fairfax primarily because of its underwriting prowess?

 

No but I think good underwriting results are necessary for the stock to trade at a premium to book.

[Viking]

Given we are about 5 weeks into Q4 here is an update of Fairfax's equity holdings (mid day Nov 5). The holdings that I track are up about $550 million = $21/share (pretax) of which $14 is mark to market.  

- Eurobank +$228

- Blackberry +$116

- Commercial Industrial Bank +$92

- FFH TRS +60

- Stelco +$41

- Kennedy Wilson +$40

- Thomas Cook +$35

- Dexterra +$31

- Recipe +$27

- IIFL Finance +$27

- the gains are very broad based with lots of positions up quite a bit

- the biggest decliner? Atlas -$175 (incl. warrants)

 

If equity markets finish the year strong Fairfax is positioned to deliver very strong investment gains in Q4. Which would deliver an outstanding 2021

 

Notes:

1.) I am slowly adjusting Fairfax ownership % for the various holdings to include Riverstone. Atlas needs to be updated.

2.) I added more detail to Gulf Insurance Group in the Other Insurance Equity Accounted group. I think I got my ownership and share count correct. Please let me know if you see any errors. If my math is right this is a US$400 million holding. Now the shares are VERY thinly traded given Fairfax and Kipco own something like 95% of the business. 

Fairfax Equity Holdings Nov 5 2021.xlsx

Edited November 5, 2021 by Viking

[glider3834]

Eurobank - Fairfax slightly increased its share holding over Q3'21 from 30.5% to 32.2% 

 

Atlas Corp - it doesn't appear Fairfax exercised any warrants in Q3 as shareholding about the same as Q2

 

 

[glider3834]

On 11/6/2021 at 4:08 AM, Viking said:

Given we are about 5 weeks into Q4 here is an update of Fairfax's equity holdings (mid day Nov 5). The holdings that I track are up about $550 million = $21/share (pretax) of which $14 is mark to market.  

- Eurobank +$228

- Blackberry +$116

- Commercial Industrial Bank +$92

- FFH TRS +60

- Stelco +$41

- Kennedy Wilson +$40

- Thomas Cook +$35

- Dexterra +$31

- Recipe +$27

- IIFL Finance +$27

- the gains are very broad based with lots of positions up quite a bit

- the biggest decliner? Atlas -$175 (incl. warrants)

 

If equity markets finish the year strong Fairfax is positioned to deliver very strong investment gains in Q4. Which would deliver an outstanding 2021

 

Notes:

1.) I am slowly adjusting Fairfax ownership % for the various holdings to include Riverstone. Atlas needs to be updated.

2.) I added more detail to Gulf Insurance Group in the Other Insurance Equity Accounted group. I think I got my ownership and share count correct. Please let me know if you see any errors. If my math is right this is a US$400 million holding. Now the shares are VERY thinly traded given Fairfax and Kipco own something like 95% of the business. 

Fairfax Equity Holdings Nov 5 2021.xlsx 164.66 kB · 12 downloads

thanks Viking - using your estimate I have estimated adjusted forward book value per share

 

Adjusted Forward BVPS - current estimate

 

BVPS (30 Sep)                                               562 (reported)

Digit revaluation                                               37 (expected Q4'21 or possibly Q1'22)

Pre-tax excess                                                 15 (19 pre-tax) (reported)

 

Adjusted BVPS                                               614

Add

Unrealised gain (post-30 Sep)                        17  (21 pre-tax)  (using estimate per Viking update)

 

Adjusted Forward BVPS                                631 USD ( 788 CAD)

 

Stock Price (5 Nov)                                       432 USD (538 CAD)

 

Price to Adjusted Forward BVPS                 0.68

 

(edit note : removing word forward as its confusing - adjusted bvps incorporates Digit revaluation expected Q4 or Q1'21)

 

Edited November 7, 2021 by glider3834

[glider3834]

3 hours ago, glider3834 said:

thanks Viking - using your estimate I have estimated adjusted forward book value per share

 

Adjusted Forward BVPS - current estimate

 

BVPS (30 Sep)                                               562 (reported)

Digit revaluation                                               37 (expected Q4'21 or possibly Q1'22)

Pre-tax excess                                                 15 (19 pre-tax) (reported)

 

Adjusted BVPS                                               614

Add

Unrealised gain (post-30 Sep)                        17  (21 pre-tax)  (using estimate per Viking update)

 

Adjusted Forward BVPS                                631 USD ( 788 CAD)

 

Stock Price (5 Nov)                                       432 USD (538 CAD)

 

Price to Adjusted Forward BVPS                 0.68

 

 

Taking the above estimates, lets think about Fairfax's Earnings yield (incl net investment gains) going forward in terms of current share price - how about we use Return on Forward Adjusted BVPS as a proxy for ROE

 

7.5% ROFABV = $47 (Earnings yield 11%)

10% ROFABV = $63 ( Earnings yield 15%)

12% ROFABV = $75 (Earnings yield  17%)

15% ROFABV = $95 (Earnings yield  22%)

 

I think over time they can do around 12% Return on Adjusted BV (and everything over this is a bonus),  however, even if they end up in high single digits eg 7.5%, the earnings yield on current share price still works out to be in low double digits at ie 11% - Fairfax's shares still look very cheap IMO

 

(Edit note: removing the word 'forward' as its confusing - adjusted book value incorporates remaining Digit revaluation $37)

Edited November 7, 2021 by glider3834

[petec]

57 minutes ago, glider3834 said:

Taking the above estimates, lets think about Fairfax's Earnings yield (incl net investment gains) going forward in terms of current share price - how about we use Return on Forward Adjusted BVPS as a proxy for ROE

 

7.5% ROFABV = $47 (Earnings yield 11%)

10% ROFABV = $63 ( Earnings yield 15%)

12% ROFABV = $75 (Earnings yield  17%)

15% ROFABV = $95 (Earnings yield  22%)

 

I think over time they can do around 12% ROFABV (and everything over this is a bonus),  however, even if they end up in high single digits eg 7.5%, the earnings yield on current share price still works out to be in low double digits at ie 11% - Fairfax's shares still look very cheap IMO

 

 

Why use forward BV, not current?

[glider3834]

1 hour ago, petec said:

Why use forward BV, not current?

@petecactually maybe I shouldn't have used 'forward' - you are right it should be current BV - but I wanted to capture residual Digit revaluation (deal done more timing issue) and portfolio increase since 30 Sep - maybe return on adjusted book value is a better expression. Hope that makes sense.

Edited November 7, 2021 by glider3834

[glider3834]

Atlas's results are out & they look great on an underlying basis - Fairfax's largest equity holding so important that Atlas does well

 

Atlas Corp. Third Quarter 2021 Financial Performance Compared to Third Quarter 2020

• Revenue growth of 17.0% to $451.9 million
• Adjusted EBITDA⁽⁴⁾ growth of 29.0% to $322.2 million
• Funds From Operations ("FFO")⁽¹⁾ growth of 42.9% to $248.0 million and FFO Per Share⁽¹⁾ growth of 36.8% to $0.93
• Earnings per diluted share of $0.30
• Adjusted diluted EPS⁽¹⁾ of $0.56, representing growth of 107.4%, excluding $70.9 million non-cash charge, or $0.26 per diluted share, related to loss on debt extinguishment

https://ir.atlascorporation.com/2021-11-08-Atlas-Reports-Third-Quarter-2021-Results

 

[Daphne]

STelco reports record revenue in Q3 and increased dividend by 50%

Edited November 10, 2021 by Daphne

[Viking]

25 minutes ago, Daphne said:

STelco reports record revenue in Q3 and increased dividend by 50%

Stelco market cap is C$3.2 billion. Cash = $400 million. Q4 earnings $500-$600 million. Land sale? Q1 2022 shipments are already happening at very good prices. IF steel prices stay high into 2022 the stock should have another leg higher   The conference call tomorrow AM should be entertaining and informative. What to do with $1 billion in cash?

Edited November 10, 2021 by Viking

[nwoodman]

32 minutes ago, Daphne said:

STelco reports record revenue in Q3 and increased dividend by 50%

"The money will roll right in.."  

 

(Ah Fang what a legacy of covers you left us)

[omagh]

Latest 13F is available here...

https://www.sec.gov/Archives/edgar/data/915191/000110465921138402/xslForm13F_X01/a21-32105_1informationtable.xml

[gfp]

I would assume that most of the higher profile position reductions are due to the Riverstone divestment and are not actually sales since FFH effectively retained the risk/reward for the transferred positions.

 

https://www.dataroma.com/m/holdings.php?m=FFH

[glider3834]

hidden value at Eurobank?  

 

https://www.businessdaily.gr/epimonos-kipoyros/52739_oi-kryfes-yperaxies-tis-eurobank-oi-nees-tis-dei-kai-i-episkepsi-psalti-sti

The news of the acquisition in Bulgaria of Raiffeisenbank (Bulgaria) by the Belgian KBC caused a lot of smiles in Eurobank , news that in Greece went to the "fine". KBC acquired 100% of the shares of the Bulgarian Raiffeisenbank for 1.015 billion euros, a price that corresponds to 13 times the P / E based on the expected profits of 2022 and 1.64 times the book value (also tangible book value, also of 2022) . And why are they smiling at Eurobank? Because, based on the size of Postbank, a subsidiary of Eurobank in Bulgaria, its respective valuation is set at 1.5 billion euros, when the market value of Eurobank on the Athens Stock Exchange is set at 3.5 billion. euro. And the forgotten value of the subsidiary in Bulgaria is not the only unrecognized value of the group.

Edited November 17, 2021 by glider3834

[glider3834]

On 11/16/2021 at 1:24 AM, gfp said:

I would assume that most of the higher profile position reductions are due to the Riverstone divestment and are not actually sales since FFH effectively retained the risk/reward for the transferred positions.

 

https://www.dataroma.com/m/holdings.php?m=FFH

yep

[Redskin212]

Fairfax Announces US$1.0 Billion Substantial Issuer Bid and Sale of 9.99% Minority Stake in Odyssey Group BY GlobeNewswire — 7:00 AM ET 11/17/2021   TORONTO, Nov. 17, 2021 (GLOBE NEWSWIRE) -- Fairfax Financial Holdings Limited ( FRFHF      Loading...     ) (“Fairfax” or the “Company”) announces its intention to commence a substantial issuer bid (the “Offer”), pursuant to which the Company will offer to repurchase for cancellation up to US$1.0 billion of its subordinate voting shares (the “Shares”) from shareholders for cash. Fairfax also announces that it has entered into an agreement with an affiliate of CPPIB Credit Investments Inc. (“CPPIB Credit Investments”), a wholly-owned subsidiary of Canada Pension Plan Investment Board, and OMERS, the defined benefit pension plan for Ontario’s municipal sector employees pursuant to which each of CPPIB Credit Investments and OMERS will acquire 100% of a new series of securities representing a 4.995% interest in Odyssey Group Holdings, Inc. (“Odyssey Group”), Fairfax’s U.S. based reinsurance and insurance subsidiary, for an aggregate cash purchase price of US$900.0 million (the “Odyssey Group Transaction”). After closing, Fairfax will retain the flexibility to repurchase the interests of OMERS and CPPIB Credit Investments in Odyssey Group over time. The Offer will proceed by way of a “modified Dutch auction”, which allows shareholders to select the price, within the specified range, at which each shareholder is willing to sell all or a portion of their Shares. The Offer prices range from US$425.00 to US$500.00 per Share (in increments of US$5.00 per Share). The Offer will be for up to a maximum of 2,352,941 Shares, or approximately 8.72% of Fairfax’s 26,986,170 total issued and outstanding Shares, based on full participation and a purchase price equal to the minimum purchase price per Share. Shareholders who wish to participate in the Offer will be able to do so through (i) auction tenders in which they will specify the number of Shares being tendered at a price of not less than US$425.00 and not more than US$500.00 per Share, in increments of US$5.00 per Share; or (ii) purchase price tenders in which they will not specify a price per Share, but rather, will agree to have a specified number of Shares purchased at the purchase price to be determined by auction tenders. Shareholders who validly deposit Shares without specifying the method in which they are tendering their Shares will be deemed to have made a purchase price tender. Fairfax has been informed by Mr. Watsa that he, and entities controlled by him, will not deposit any Shares owned or controlled by him pursuant to the Offer (including, for greater certainty, in respect of any Shares into which multiple voting shares of Fairfax controlled by Mr. Watsa are convertible). Upon expiry of the Offer, Fairfax will determine the lowest purchase price (which will not be more than US$500.00 per Share and not less than US$425.00 per Share) that will allow the Company to purchase the maximum number of Shares properly tendered to the Offer, and not properly withdrawn, having an aggregate purchase price not exceeding US$1.0 billion. If Shares with an aggregate purchase price of more than US$1.0 billion are properly tendered and not properly withdrawn, Fairfax will purchase the tendered Shares on a pro rata basis after giving effect to “odd lot” tenders (of shareholders beneficially owning fewer than 100 Shares), which will not be subject to proration. In that case, all Shares tendered at or below the finally determined purchase price will be purchased, subject to proration, at the same purchase price determined pursuant to the terms of the Offer. Shares that are not purchased, including Shares tendered pursuant to auction tenders at prices above the purchase price, will be returned to shareholders. The Offer will expire at 5:00 p.m. (Eastern time) on December 23, 2021, unless the Offer is extended or withdrawn by Fairfax. The Offer will not be conditional upon any minimum number of Shares being tendered. The Offer will, however, be subject to other conditions and Fairfax will reserve the right, subject to applicable laws, to withdraw or amend the Offer, if, at any time prior to the payment of deposited Shares, certain events occur. Fairfax intends to use the proceeds of the Odyssey Group Transaction and other available cash resources to fund the purchase of Shares under the Offer, however, the Offer is not conditional upon closing of the Odyssey Group Transaction. Details of the Offer, including instructions for tendering Shares, will be included in the formal offer to purchase and issuer bid circular, letter of transmittal, notice of guaranteed delivery and other related documents (the “Offer Documents”). The Offer Documents will be mailed to shareholders and will be filed on or about November 18, 2021 with the applicable Canadian securities regulatory authorities and made available without charge on SEDAR at www.sedar.com, filed on a Schedule 13E-4F with the U.S. Securities and Exchange Commission and made available without charge on EDGAR at www.sec.gov. Neither Fairfax nor its Board of Directors makes any recommendation to shareholders as to whether to tender or refrain from tendering any or all of their Shares to the Offer or as to the purchase price or prices at which shareholders may choose to tender Shares. Shareholders are urged to read the Offer Documents carefully and in their entirety, and to consult their own financial, tax and legal advisors and to make their own decisions with respect to participation in the Offer. Any questions or requests for assistance in tendering Shares to the Offer may be directed to Computershare Investor Services Inc., the depositary for the Offer. Fairfax has engaged Scotiabank to act as exclusive financial advisor in respect of the Offer. Odyssey Group Transaction Pursuant to the Odyssey Group Transaction, each of OMERS and CPPIB Credit Investments will acquire a 4.995% interest in Odyssey Group. Following the closing of the Odyssey Group Transaction, Fairfax will have the flexibility to repurchase the interests of OMERS and CPPIB Credit Investments in Odyssey Group over time. Closing of the Odyssey Group Transaction is subject to customary closing conditions and is expected to occur during the fourth quarter of 2021. Proceeds from the Odyssey Group Transaction will be used by Fairfax to fund the purchase of Shares pursuant to the Offer. Closing of the Odyssey Group Transaction is not conditional upon the closing of the Offer or any minimum number of Shares being acquired in the Offer and the Offer is not conditional upon the closing of the Odyssey Group Transaction. Not an Offer or Solicitation This press release is neither an offer to purchase nor a solicitation of an offer to sell any Shares. The solicitation and the offer to purchase Shares by Fairfax will be made pursuant to the Offer Documents that Fairfax will file with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission. Neither Fairfax nor its Board of Directors makes any recommendation to any shareholder as to whether to deposit or refrain from depositing Shares. These documents contain important information about the Offer and shareholders of Fairfax are urged to read them carefully. Fairfax is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management. For further information, contact: John Varnell, Vice President, Corporate Development at   (416) 367-4941 Certain statements contained herein may constitute forward-looking statements and are made pursuant to the “safe harbour” provisions of applicable Canadian securities laws. Particularly, statements about the Offer and the Odyssey Group Transaction and the terms thereof (including relating to the size, timing, and terms and conditions of the Offer and the timing for closing of the proposed Odyssey Group Transaction) are forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fairfax to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: uncertainty in the level of shareholder participation in the Offer; failure to complete the Offer due to conditions to the Offer not being satisfied or waived; failure to complete the Odyssey Group Transaction which is subject to customary conditions; reduction in net earnings if our loss reserves are insufficient; underwriting losses on the risks we insure that are higher or lower than expected; the occurrence of catastrophic events with a frequency or severity exceeding our estimates; changes in market variables, including interest rates, foreign exchange rates, equity prices and credit spreads, which could negatively affect our investment portfolio; risks associated with the global pandemic caused by a novel strain of coronavirus (“COVID-19”), and the related global reduction in commerce and substantial downturns in stock markets worldwide; the cycles of the insurance market and general economic conditions, which can substantially influence our and our competitors’ premium rates and capacity to write new business; insufficient reserves for asbestos, environmental and other latent claims; exposure to credit risk in the event our reinsurers fail to make payments to us under our reinsurance arrangements; exposure to credit risk in the event our insureds, insurance producers or reinsurance intermediaries fail to remit premiums that are owed to us or failure by our insureds to reimburse us for deductibles that are paid by us on their behalf; our inability to maintain our long term debt ratings, the inability of our subsidiaries to maintain financial or claims paying ability ratings and the impact of a downgrade of such ratings on derivative transactions that we or our subsidiaries have entered into; risks associated with implementing our business strategies; the timing of claims payments being sooner or the receipt of reinsurance recoverables being later than anticipated by us; risks associated with any use we may make of derivative instruments; the failure of any hedging methods we may employ to achieve their desired risk management objective; a decrease in the level of demand for insurance or reinsurance products, or increased competition in the insurance industry; the impact of emerging claim and coverage issues or the failure of any of the loss limitation methods we employ; our inability to access cash of our subsidiaries; our inability to obtain required levels of capital on favourable terms, if at all; the loss of key employees; our inability to obtain reinsurance coverage in sufficient amounts, at reasonable prices or on terms that adequately protect us; the passage of legislation subjecting our businesses to additional adverse requirements, supervision or regulation, including additional tax regulation, in the United States, Canada or other jurisdictions in which we operate; risks associated with government investigations of, and litigation and negative publicity related to, insurance industry practice or any other conduct; risks associated with political and other developments in foreign jurisdictions in which we operate; risks associated with legal or regulatory proceedings or significant litigation; failures or security breaches of our computer and data processing systems; the influence exercisable by our significant shareholder; adverse fluctuations in foreign currency exchange rates; our dependence on independent brokers over whom we exercise little control; impairment of the carrying value of our goodwill, indefinite-lived intangible assets or investments in associates; our failure to realize deferred income tax assets; technological or other change which adversely impacts demand, or the premiums payable, for the insurance coverages we offer; disruptions of our information technology systems; assessments and shared market mechanisms which may adversely affect our insurance subsidiaries; adverse consequences to our business, our investments and our personnel resulting from or related to the COVID-19 pandemic; and the failure to complete or realize the anticipated benefits of the Odyssey Group Transaction. Additional risks and uncertainties are described in our most recently issued Annual Report which is available at www.fairfax.ca and in our Base Shelf Prospectus (under “Risk Factors”) filed with the securities regulatory authorities in Canada, which is available on SEDAR at www.sedar.com. Fairfax disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law.  Image: https://www.globenewswire.com/newsroom/ti?nf=ODM5NTkxMiM0NTU4Nzg1IzIwMTAxMjk= Image: https://ml.globenewswire.com/media/MDQ3MmNhYTItN2NjZC00MzBlLWJmYzEtYzgyNWI1NTdmNjViLTEwMjE3MDI=/tiny/Fairfax-Financial-Holdings.png Image: Primary Logo Source: Fairfax Financial Holdings ( FRFHF      Loading...     ) MORE FRFHF NEWS   Argus Research A6/Quantitative drops coverage for FAIRFAX FINANCIAL HOLDINGS SUB VOTING ORD SHS. Investars Analyst Actions - private - 12:06 PM ET 11/11/2021   Fairfax Financial Price Target Lowered to $775 at Scotiabank MT Newswires - 8:06 AM ET 11/08/2021   Fairfax Financial Holdings Limited CEO Prem Watsa on Q3 2021 Results -- Earnings Call Transcript FRFHF DJ Realtime News - 1:32 PM ET 11/05/2021

[nwoodman]

23 hours ago, glider3834 said:

yep

This from ATCO

 

https://ir.atlascorporation.com/2021-11-17-Atlas-Clarifies-Incorrect-Recent-Media-Coverage-Concerning-its-Common-Shareholders

[glider3834]

Gulf Insurance group results look strong & obviously benefiting from AXA acquisition

 

https://www.insurancebusinessmag.com/asia/news/breaking-news/gulf-insurance-group-profits-skyrocket-242-316608.aspx

 

Shares have advanced close to a 52 week high - current market cap 313 mil KWD ( approx US$1.04 bil )

 

Fairfax ownership 43.4% - now worth approx US$450 mil) 

 

 

 

I think part of GIG investment is included in Riverstone sale - I think Fairfax will repurchase unless they want to sell in meantime - either way I believe this GIG - Riverstone portion will be reflected in Fairfax's earnings as a derivative gain (from GIG share price increase) on their repurchase contract option.

Edited November 19, 2021 by glider3834

[Thrifty3000]

The next 80 years look pretty bright for Fairfax Africa and India. This graphic was in today's Washington Post...

 

[glider3834]

not a huge holding for Fairfax but LFL has launched a 10.7% substantial issuer bid after a record 3Q result - Fairfax stake around 9% or US$140mil approx now but could get pushed up further with this buyback- LFL looks to be trading for less than 10x PE - looks interesting I might take a look further at this one

 

https://finance.yahoo.com/news/leons-furniture-limited-announces-intention-133000362.html

 

https://www.lflgroup.ca/English/news/news-details/2021/LFL-Canadas-Largest-Home-Furnishings-Retailer-Releases-Record-Financial-Results-for-the-Third-Quarter-ended-September-30-2021/default.aspx

 

 

 

[Viking]

2 hours ago, glider3834 said:

not a huge holding for Fairfax but LFL has launched a 10.7% substantial issuer bid after a record 3Q result - Fairfax stake around 9% or US$140mil approx now but could get pushed up further with this buyback- LFL looks to be trading for less than 10x PE - looks interesting I might take a look further at this one

 

https://finance.yahoo.com/news/leons-furniture-limited-announces-intention-133000362.html

 

https://www.lflgroup.ca/English/news/news-details/2021/LFL-Canadas-Largest-Home-Furnishings-Retailer-Releases-Record-Financial-Results-for-the-Third-Quarter-ended-September-30-2021/default.aspx

 

 

 

Yes, Glider, thanks for all the updates. Lots of good things going on at many of the companies Fairfax owns. Leon’s certainly has been a big winner during the pandemic. People are staying at home more and they are upgrading their furnishings. Record earnings is a beautiful thing. The stock is up about 40% from its pre-pandemic price range.   3 months ago they announced a C$1.25 special dividend. And now a massive buyback. Interesting it is another dutch auction.
 

A few Fairfax owned companies have been very aggressive this year with share repurchases: Stelco, Fairfax India and Leons. And of course, Fairfax. RFP as well but more so last year (i think). Great to see.

Edited November 20, 2021 by Viking