Jump to content

Fairfax getting busy


AZ_Value
 Share

Recommended Posts

Well, there is nothing unusual with their normal course issuer bid. They always release this news each year. Under the last bid they repurchased 109,480 shares.

 

Some people seem to be unaware of this, because the stock had a nice pop today.

 

Don't worry i have seen the pop.  ;D  They probably purchase always around book value, which should be higher with recent bond gains.

Link to comment
Share on other sites

Thera a cause and effect news report that fry is up on the announcement.  This belongs inthe don't believe everything u read category.  It was already flying before the standard September announcement and if u read through it they only bought and retired 106k in the last year even though prices were down.  I believe there's a rush to hedged safety coupled with CDs and bond potential

D

Link to comment
Share on other sites

In terms of relative value, the markets are setting up for FFH to have lots of better opportunities to deploy capital than to buyback stock. I hope the guys at HWIC are salivating and conserving their capital for bargain basement sales.

 

I bet no one is complaining about their equity hedges today. :D

Link to comment
Share on other sites

 

I bet no one is complaining about their equity hedges today. :D

 

 

Exactly. :-)

 

I know I posted this in the Berkowitz/WealthTrack thread, but I love the quote "In February I was a hero, now I’m a bum. So, we’ll see six months from now. Revenge should be sweet."

 

Six months ago, people (sans people on this board, of course) thought Prem & Co. were bums for hedging their exposure to equity markets -- nice to see them vindicated.

Link to comment
Share on other sites

FFH shares are expensive compared to the investments they could make in other areas.  They will assess and go where the best returns are.

On a look through basis, suppose one FFH share at book value is equivalent to some shares and bonds and chunk of business, etc. that Prem et. al. has already found attractive at their prices. Then which is better:

  • buying the share of FFH, i.e. the equivalent of buying the underlying assets at their already attractive prices
  • buying some other assets, i.e. assets that has not yet been attractive

 

Cheers!

Link to comment
Share on other sites

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 account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...