Guest Posted October 12, 2010 Share Posted October 12, 2010 Gentlemen, I will be accepting congratulations, toasts, high fives, kudos, champagne, and boxed chocolates. ;D It has been an honor to make anyone who listened to me gobs of money. ;D If any of the Houston crew want to meet up for drinks, I am up for it. Let's have a party. haha. A great investor and modest too! ;) Link to comment Share on other sites More sharing options...
Myth465 Posted October 12, 2010 Share Posted October 12, 2010 At 1.25 times book, he would be paying up for the company and it's probably not worth it unless he can guarantee himself significant investment returns. He doesn't know what contracts they have been writing in the last year and if the premiums are adequate. There would be little margin of safety at 1.25 times book. Cheers! I think 1.1 isnt leaving alot of room for error in this environment. I think it will be interesting to watch, and think he may go a shade higher. Management will say book value now is higher. Either way I agree, there isnt much margin and it will be interesting to see him watch. The think about SNS is he got it for cheap so there was room for error. Also the more cash allocated to stocks the less yield they will have. Returns will then be extremely lumpy because Biglari seems to prefer take over vs. buy and wait. haha. A great investor and modest too! ;) Lol congrats Harry, I am sure today has been profitable. Link to comment Share on other sites More sharing options...
beerbaron Posted October 13, 2010 Share Posted October 13, 2010 Lol, finally Harry can stop making web pages to enhance an insurance company's value! BeerBaron Link to comment Share on other sites More sharing options...
shalab Posted October 13, 2010 Share Posted October 13, 2010 From Lion Fund annual report in 2009, ( for 2008 ), I got the below: Our overall performance in 2008 was minus 28.1%. Over the last 9 years, The Lion Fund has achieved a rate of return of 13.6% compounded annually. Link to comment Share on other sites More sharing options...
farnamstreet Posted October 13, 2010 Share Posted October 13, 2010 Interesting coincidence: It was two years from the time Buffett got control of Berkshire before he purchased his first insurance company ;) Link to comment Share on other sites More sharing options...
Guest Bronco Posted October 13, 2010 Share Posted October 13, 2010 When does the board expect to respond? If they accept I will be warming up to BH - still would like to buy at a cheaper price but if he can pull this off he could be really on to something. Insurance = float (can be a vicious weapon in the right hands) Money management - great business SNS - cash flow machine I can still invest in a company even if I don't like the CEO - mabye... Link to comment Share on other sites More sharing options...
Guest HarryLong Posted October 15, 2010 Share Posted October 15, 2010 Of course, to settle the Tim/Bronco debate, we really have to ask if book value really matters if a company uses the legislature to block itself from being taken over. This is a rare case in which Tim and Bronco are both right. Without a negotiated transaction/settlement/compromise/lawsuit/legal win, the book value can't be unlocked. With a solution, the book value matters. You discount the risk of the unlock accordingly. It's dirt simple. Anything that's true usually is. Link to comment Share on other sites More sharing options...
SmallCap Posted October 15, 2010 Share Posted October 15, 2010 I noticed that the price of FMMH is now down to $25.92. Is it now at a point where it becomes a good arbitrage situation based on the probability of the offer being accepted or renegotiated? SmallCap Link to comment Share on other sites More sharing options...
QLEAP Posted November 6, 2010 Share Posted November 6, 2010 Did Sardar's new compensation get approved in the proxy meeting today ? Link to comment Share on other sites More sharing options...
Alekbaylee Posted November 6, 2010 Share Posted November 6, 2010 Apparently yes... http://www.mysanantonio.com/business/local/biglari_shareholders_approve_ceos_incentive_pay_106797313.html Link to comment Share on other sites More sharing options...
biaggio Posted November 6, 2010 Share Posted November 6, 2010 "I can still invest in a company even if I don't like the CEO - mabye..." I don think it is a matter of liking the CEO. Is it wise to buy, if you don t trust him? What did WEB say, that he looks for integrity + energy/ability with integrity being the most important because if the CEO don t have integrity , then his energy/ability will kill you. SB is very able. Will he make money with you or off you that is the question. What do others think? Link to comment Share on other sites More sharing options...
Myth465 Posted November 6, 2010 Share Posted November 6, 2010 I will buy one day if it gets cheap enough. Right now inmo it still trades at a premium for management and that isnt deserved. Link to comment Share on other sites More sharing options...
Guest Bronco Posted November 6, 2010 Share Posted November 6, 2010 Truth be told I have been trading this in my wife's 401k and taken profits. Bh is set up to make good cash flow... Question for me comes down to price. To me, liking a CEO is less important than making money. And I don't like biglari, but respect the cash flow. Link to comment Share on other sites More sharing options...
Alekbaylee Posted November 8, 2010 Share Posted November 8, 2010 Book value increased to $27,77. Guess Biglari will have to hike up his offer... http://www.prnewswire.com/news-releases/fremont-michigan-insuracorp-reports-third-quarter-2010-earnings-and-announces-quarterly-cash-dividend-106890693.html Link to comment Share on other sites More sharing options...
ragnarisapirate Posted November 8, 2010 Share Posted November 8, 2010 Book value increased to $27,77. Guess Biglari will have to hike up his offer... http://www.prnewswire.com/news-releases/fremont-michigan-insuracorp-reports-third-quarter-2010-earnings-and-announces-quarterly-cash-dividend-106890693.html That's a lovely combined ratio, there... Link to comment Share on other sites More sharing options...
Guest Bronco Posted November 8, 2010 Share Posted November 8, 2010 Alek, To beat a dead horse... Is $29 cash worth less than $27.77 book value? If book value equates to liquidation value, I would rather have $29 cash than $27.77, but its been a while since I had my last arithmetic class. But than again, these prized, Michigan, shareholder friendly insurance companies should always trade at a premium to book - worth a significant deal more than ex-Michigan insurance companies. Just ask them. Link to comment Share on other sites More sharing options...
Alekbaylee Posted November 8, 2010 Share Posted November 8, 2010 If book value equates to liquidation value, I would rather have $29 cash than $27.77,[/i] Me too my friend, me too. I hold a small position and would be happy to sell for $29, but I'm sure management would ask more if it's willing to sell, which doesn't seem to be the case or at least they don't seem to be in any hurry : "With regard to recent SEC filings by certain shareholders, we issued a news release on Oct. 14, 2010 indicating that the Board of Directors had asked its previously appointed Special Committee to review the matter and make an appropriate recommendation to the Board on what it believes to be in the best interests of all shareholders and the Company. The Special Committee is undertaking a careful examination of the issues in fulfillment of its fiduciary duties and will make a recommendation when it is feasible to do so. In the meantime, we will continue to operate Fremont in a way that enhances shareholder value." Link to comment Share on other sites More sharing options...
Guest Bronco Posted November 8, 2010 Share Posted November 8, 2010 Alek - Good response. Of course, I am poking fun at the BOD at Fremont. I wrote about Jerry Yang on SA right after he shot down Microsoft. This, to me, feels very similar, and I think it sucks. Link to comment Share on other sites More sharing options...
Josh4580 Posted November 8, 2010 Share Posted November 8, 2010 Picked up 100 shares at $27 on this news, now have 200 shares at $26.28 Link to comment Share on other sites More sharing options...
Guest Bronco Posted November 16, 2010 Share Posted November 16, 2010 What's slower? a) a board member on Fremont's BOD b) a tortoise c) a Vancouver Canuck defensemen This is a trick question. While they are all super slow...and this is subjective, I am leaning towards (a). Any thoughts? BTW - the Flyers are the best team in hockey right now for those that care. Broad street is back. Link to comment Share on other sites More sharing options...
Parsad Posted November 16, 2010 Share Posted November 16, 2010 Ha, ha Bronco, very funny! Pittsburgh and Washington will kick your butt in the playoffs. And we'll play one of them in the finals. 40 years and no cup! This is our year baby...Vancouver all the way. Cheers! Link to comment Share on other sites More sharing options...
OracleofCarolina Posted November 29, 2010 Share Posted November 29, 2010 Sheesh...when will the Fremont board make a decision? Link to comment Share on other sites More sharing options...
ragnarisapirate Posted November 29, 2010 Share Posted November 29, 2010 Sheesh...when will the Fremont board make a decision? Probably when Biglari is elected to the BOD. Link to comment Share on other sites More sharing options...
Myth465 Posted November 30, 2010 Share Posted November 30, 2010 I think they made the discussion on day 1. The question is how long will it take for them to find another buyer. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now