villainx Posted September 27 Share Posted September 27 @adventurer Buyback announcements are normal. % or $ permitted to be repurchase will be different. And it's discretionary. Can be opportunistic, to offset dilution, or a way to return money to shareholders. At same time, it can be suboptimal if valuations are high. Link to comment Share on other sites More sharing options...
UK Posted September 30 Share Posted September 30 https://www.prnewswire.com/news-releases/fairfax-to-acquire-controlling-ownership-of-peak-achievement-athletics-302261917.html Link to comment Share on other sites More sharing options...
Hoodlum Posted September 30 Share Posted September 30 59 minutes ago, UK said: https://www.prnewswire.com/news-releases/fairfax-to-acquire-controlling-ownership-of-peak-achievement-athletics-302261917.html So it looks like they could not find a buyer at the price they wanted. We will find out in Feb what this acquisition was valued at. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted September 30 Author Share Posted September 30 1 hour ago, Hoodlum said: So it looks like they could not find a buyer at the price they wanted. We will find out in Feb what this acquisition was valued at. I don’t know if that’s the right read. It seems like Sagard was a seller but management was not so that explains why FFH wants to stay in the deal. Sagard likely wanted to run the process to make sure they were getting a fair price. Presumably it was a price that FFH can still earn a 15% return which is what PE would be looking for as well. Link to comment Share on other sites More sharing options...
dartmonkey Posted September 30 Share Posted September 30 On 9/6/2024 at 10:24 AM, dartmonkey said: I love it when Fairfax opportunistically accepts a nosebleed offer, like the pet insurance bid by JAB Holdings a couple of years ago or this Stelco bid. When I heard they were shopping Bauer/Maverik/Peak, which seems to have been a modestly successful investment (about 10% CAGR I think), I wondered why they don't just hold onto it, hoping someone develops an irresistible craving for a hockey/lacrosse equipment company. What's the hurry? So it looks like they could not find a buyer at the price they wanted. We will find out in Feb what this acquisition was valued at. ...I don’t know if that’s the right read. It seems like Sagard was a seller but management was not so that explains why FFH wants to stay in the deal. Sagard likely wanted to run the process to make sure they were getting a fair price. Presumably it was a price that FFH can still earn a 15% return which is what PE would be looking for as well. Looks like I got what I hoped for, Fairfax hanging on, and it seems that it was Sagard that wanted to get out. I much prefer having Fairfax the buyer of an asset they know well, from a motivated seller. If at some point someone desperately wants to own the #1 hockey brand, maybe Fairfax would sell, but in the meantime, they have a nice asset at what may be a nice price. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted September 30 Author Share Posted September 30 27 minutes ago, dartmonkey said: So it looks like they could not find a buyer at the price they wanted. We will find out in Feb what this acquisition was valued at. ...I don’t know if that’s the right read. It seems like Sagard was a seller but management was not so that explains why FFH wants to stay in the deal. Sagard likely wanted to run the process to make sure they were getting a fair price. Presumably it was a price that FFH can still earn a 15% return which is what PE would be looking for as well. Looks like I got what I hoped for, Fairfax hanging on, and it seems that it was Sagard that wanted to get out. I much prefer having Fairfax the buyer of an asset they know well, from a motivated seller. If at some point someone desperately wants to own the #1 hockey brand, maybe Fairfax would sell, but in the meantime, they have a nice asset at what may be a nice price. I think they like to sell with management so incentives are aligned and they don’t get left holding the bag Link to comment Share on other sites More sharing options...
Masterofnone Posted October 1 Share Posted October 1 For what it is worth, my niece and nephew who both have been upper level lacrosse players tell me that Cascade Lacrosse and Maverik Lacrosse are first tier brands. No close second in helmets. Link to comment Share on other sites More sharing options...
giulio Posted October 1 Share Posted October 1 Link to comment Share on other sites More sharing options...
MMM20 Posted October 1 Share Posted October 1 (edited) Can Bauer be Fairfax’s Sees Candy? A wide moat but niche regional brand that prints money without any great internal reinvestment prospects. Too small to really matter to the parent returns, but a symbol of what they’re looking for / why they’re special, and a signal to Canadian business owners that Fairfax is the best long term home when they decide to sell. Thoughts? Edited October 1 by MMM20 Link to comment Share on other sites More sharing options...
hardcorevalue Posted October 1 Share Posted October 1 It seems a much smaller TAM and less pricing power than See’s is famous for. Link to comment Share on other sites More sharing options...
villainx Posted October 1 Share Posted October 1 1 hour ago, hardcorevalue said: It seems a much smaller TAM and less pricing power than See’s is famous for. cause of global warming? Link to comment Share on other sites More sharing options...
MMM20 Posted October 1 Share Posted October 1 1 hour ago, hardcorevalue said: It seems a much smaller TAM and less pricing power than See’s is famous for. I need to learn more about Bauer, but I'd assumed they had solid pricing power. What self-respecting Canadian or Minnesotan wants to be seen with Temu skates? Only half joking. Is there a legit competitor? Link to comment Share on other sites More sharing options...
Gamecock-YT Posted October 1 Share Posted October 1 CCM for one. Warrior and True maybe lesser known brands but lots of people favor them over Bauer or CCM. Then you get down to Sherwood and Winwell. Link to comment Share on other sites More sharing options...
Thrifty3000 Posted October 1 Share Posted October 1 (edited) Great brands at a fair price. Whether mattresses, hockey sticks, banks, airports or container ships, I say the more the merrier. Edited October 1 by Thrifty3000 Link to comment Share on other sites More sharing options...
Jaygo Posted October 2 Share Posted October 2 Anyone notice some new sleep country advertisements. I dont watch too much TV so maybe they have been running the whole time and I never paid attention until the fairfax deal I also noticed they dumped the Canada in the name. Maybe a US expansion? Link to comment Share on other sites More sharing options...
villainx Posted October 2 Share Posted October 2 1 hour ago, Jaygo said: Anyone notice some new sleep country advertisements. I'll be shopping for a new mattress soon, will share if Sleep Country is among the finalist! Link to comment Share on other sites More sharing options...
hardcorevalue Posted October 2 Share Posted October 2 Ikea has way better deals if you research the right one. They don’t have to spend a massive amount of the topline on marketing dollars. Link to comment Share on other sites More sharing options...
Haryana Posted October 4 Share Posted October 4 https://www.theglobeandmail.com/investing/markets/inside-the-market/article-thursdays-analyst-upgrades-and-downgrades-for-october-3 RBC’s Scott Heleniak raised his Fairfax Financial Holdings Ltd. target to US$1,425 from US$1,325 with an “outperform” rating. The average is $1,950 (Canadian). “We are reducing our 2024 EPS estimate to US$133.40 (from US$138.00) to factor in higher-than-modeled Q3 catastrophe loss assumptions,” he said. “We now assume US$450-milllion in Q3 cat losses (7.1 loss ratio points), up just over US$125-million from our previous forecast. We expect Fairfax to have exposure to several international cat events including Canadian events, U.S. hurricanes, and Asia/European storms. Our 2025 EPS estimate of US$154.00 remains unchanged.” Link to comment Share on other sites More sharing options...
Haryana Posted October 6 Share Posted October 6 On 7/17/2024 at 3:04 AM, SafetyinNumbers said: GWO has a low weighting because most of its market cap is included in POW’s float cap as @bearprowler6noted. It doesn’t make sense to add the 63rd biggest weight to the 60 over the 27th (FFH). FFH has not been overlooked yet but it might be with the next opening. That’s probably better in the long run for most shareholders as they might be tempted to sell on the multiple expansion when the compounding in BV should go on forever. It’s just too big to not go in eventually. It’s a matter of if not when, IMHO. Was going through this as was discussed. Like nitpicking, you meant, a matter of when Not if. Link to comment Share on other sites More sharing options...
SafetyinNumbers Posted October 6 Author Share Posted October 6 21 minutes ago, Haryana said: Was going through this as was discussed. Like nitpicking, you meant, a matter of when Not if. indeed, nice catch. It is indeed inevitable. The most important name to catch is Intact Financial which almost every active fund is overweight but has struggled to grow book value. Multiple expansion has helped it outperform other financials but not owning FFH gets more painful when it's in the 60 and when its a bigger weight than IFC. Although it might take a while as IFC will likely be issuing stock at 2.9x book value which will be accretive which increases its float weight. Meanwhile FFH is buying back shares which has the opposite effect. Growing 15%+/yr and multiple expansion more than offsets that though. Link to comment Share on other sites More sharing options...
Junior R Posted October 7 Share Posted October 7 2 year and 10 year both above 4% ...Should be good for fairfax if they want to extend any Link to comment Share on other sites More sharing options...
MMM20 Posted October 7 Share Posted October 7 (edited) I missed this last week. CIBC's "index specialist" now thinks FFH is #1 in the queue for inclusion in the TSX 60, which would bring "close to 1mm shares of demand into the stock, representing ~15x its 30-day average daily volume." I'm guessing this is music to @SafetyinNumbers's ears and explains the recent strength. Here's hoping we eventually get to sell at a big premium to intrinsic value to know-nothing index investors. Sorry, grandma! Edited October 7 by MMM20 Link to comment Share on other sites More sharing options...
Luke Posted October 7 Share Posted October 7 11 minutes ago, MMM20 said: I missed this last week. CIBC's "index specialist" now thinks FFH is #1 in the queue for inclusion in the TSX 60, which would bring "close to 1mm shares of demand into the stock, representing ~15x its 30-day average daily volume." I'm guessing this is music to @SafetyinNumbers's ears and explains the recent strength. Here's hoping we eventually get to sell at a big premium to intrinsic value to know-nothing index investors. Sorry, grandma! Amazing when it happens, thanks for sharing. Link to comment Share on other sites More sharing options...
Thrifty3000 Posted October 7 Share Posted October 7 I wouldn’t be surprised if FFH breaks into the top 25 within 6 months, and the top 20 within 18 months. Link to comment Share on other sites More sharing options...
dartmonkey Posted October 7 Share Posted October 7 On 10/1/2024 at 11:18 AM, giulio said: Aw shucks, and here I was thinking I was going to get some of it via Fairfax. Link to comment Share on other sites More sharing options...
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