SFK pulp

[Myth465]

Here is the impact of being straightforward with investors:

 

http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=Z-C%3aTMB-1733392&symbol=TMB&region=C

 

The share price is up 20% today following this disclosure. Tembec is a producer of market pulp, lumber and papers. They are highly levered to the price of pulp and a high cost producer. Their share price was down a lot in recent weeks similar to FBK likely due to concerns about the economy.

 

Why is it that Fibrek managers did not provide information on Q2 results along with the rights offering? Provide a decent guidance range along with assumptions used and you eliminate any chance of litigation if you miss. IMO, it would have helped garner some interest and prevent the share price to plummet. Q2 should be quite a bit better, so why not spreading the good news? There is a difference between issuing now 39.6 million shares and say 35 million for the exact same amount of proceeds.

 

Cardboard

 

I think they wanted to give us a chance to buy more.

 

I expect a similar pop with ATSG and FBK on Q2 release, would prefer it now though. I just about have all I want in both.

[nodnub]

I have a question for SFK shareholders that use a discount broker:

 

Did you receive a copy of the rights offering prospectus from your broker?  Or any notification of the offering?

 

[Myth465]

I received no notification or rights yet. I just got my FBK pink sheet shares yesterday, so only time will tell.

[nodnub]

I should clarify, I don't mean notification of receiving the rights in your account. 

 

In the past, dealing with another broker, I was mailed a copy of the rights offering prospectus when a different company had a rights offering. 

 

I was wondering if anyone received any advance notice of the rights offering by mail?  Either a notification or a copy of the prospectus?

[Uccmal]

I should clarify, I don't mean notification of receiving the rights in your account. 

 

In the past, dealing with another broker, I was mailed a copy of the rights offering prospectus when a different company had a rights offering. 

 

I was wondering if anyone received any advance notice of the rights offering by mail?  Either a notification or a copy of the prospectus?

 

The rights should appear in your account.  That has been my experience.  And then the offering prospectus and conditions should arrive.  Nothing Yet... Someone with IB said they had theirs - I expect them to appear sometime today or tonite - TD.

[Hoodlum]

The rights should appear in your account.  That has been my experience.  And then the offering prospectus and conditions should arrive.  Nothing Yet... Someone with IB said they had theirs - I expect them to appear sometime today or tonite - TD.

 

I talked with TD this morning and they said it would show on the 21st at the earliest.

 

 

[nodnub]

Once again, I am not talking about when I am actually going to receive the rights.  The prospectus itself states that the rights can be exercised beginning June 21st 2010.  This date is not important to me, since we have 3 weeks to exercise them.

 

What I am trying to determine is: did anyone receive notice from their broker about the rights offering prior to the ex-rights date of June 16th, so that they could actually buy additional shares that would earn additional rights in the offering.  

 

Just curious if anything was sent out by SFK that my broker has not sent to me.  (I had some problems with late delivery of corporate proxies in the past)

 

 

 

[Alekbaylee]

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

 

[SharperDingaan]

 

A discount broker is only required to send you an election notice, and the SEDAR location of the rights prospectus, asap after record date. The election notice will require you to indicate 1) if you're going to subscribe & for how many shares 2) if you're going to oversubscribe & for how many shares. Choose to do nothing & the broker will automatically subscribe your rights holding as of close of trading on expiry date, & charge your account.

 

It is your responsibility to make yourself aware of the prospectus terms, & buy/sell/oversubscribe as you wish. If you don't want to fully subscribe, it is your responsibility to sell your excess rights before expiry date. No if's/but's/maybe's.

 

SD   

[nodnub]

 

A discount broker is only required to send you an election notice, and the SEDAR location of the rights prospectus, asap after record date.

Thank you for the response Sharper -- this sentence answers my question.

[alertmeipp]

call ur brokers.

 

some brokers will not ex. your rights automatically.

[alertmeipp]

So, are you guys going to exercise all the rights?

 

[Myth465]

If mines come through, probably.

I have 4 stocks I think will do great over Q2, this is one of them.

 

Then again, I thought the same at Q1.

$1.01 vs $1.16 seems to be a no brainier though we could get back to trading down.

 

Will definitely wait to see where the share price is on the last few days.

 

----

 

What about you, you seem fairly bullish.

[alertmeipp]

I will as long as the price does not tank below it. :)

I am thinking hard whether to over-subscribe...

 

Not sure how much it will run after Q2.... Q3 - Q4 will start to show the benefits of these financing transactions.

 

:D

[Uccmal]

I will be subscribing and may over subscribe if I can.  I reduced my position in order to do this within my comfort zone (took profits).  I think at the very least the improved balance sheet and conservation of cash should make them a good target, perhaps in the price range FFH paid ($4-5). 

[Uccmal]

For awhile today we have actually managed to turn profitable on the warrants that I have not yet received.

[finetrader]

some good news.

 

http://www.theglobeandmail.com/globe-investor/news-sources/?data-ipsquote-timestamp=20100621&archive=cnw&slug=C7016

[alertmeipp]

That's good.

The management can't be more humble:

 

"We are very pleased with this revision in our rating. This upgrade coupled with our refinancing are positive signs towards recovery and are aligned with our strategy of strengthening our balance sheet"