Jump to content

Leucadia to Acquire National Beef!


Parsad
 Share

Recommended Posts

I certainly didn't see that one coming  ???

 

Rarely you can predict their moves in advance. You can predict when they are adding to their existing holding but any new buys are not easy to predict. In my opinion, a bet on LUK at right price is essentially a bet on these two guys and they are very good at that they do.

Link to comment
Share on other sites

5 min scan

 

FY (Aug 27)          2011  2010  2009 

Revenue (M)  6,849.47  5,807.93  5,449.28 

EBITDA (M)        324.15  322.15  219.09 

EBIT (M)                  272.96  271.01  174.72 

Income Available to Com Excl ExtraOrd (M)  258.49  247.09  142.86 

 

P/S    0.13

PE      3.30

EV/NI  5.20 ((868+528-50)/258) 528 on and off balance sheet debt

 

Other: Unconsolidated sub - Might be worth something

          Balance sheet will need extra analysis work

 

Link to comment
Share on other sites

Yes, I had a quick look at ebit etc. as well and it looks crazy cheap. Ajusted for their 79% stake they get $200M in earnings per year and possibly growing.  :o

 

I sold some BRK for LUK at $24 and later at $20,2 and think they will do very well, as they did in the past. Great to see that they are making big deals that won't be affected by Mr. Markets sentiment and will provide steady streams of cash.

Link to comment
Share on other sites

Yes, I had a quick look at ebit etc. as well and it looks crazy cheap. Ajusted for their 79% stake they get $200M in earnings per year and possibly growing.  :o

 

I sold some BRK for LUK at $24 and later at $20,2 and think they will do very well, as they did in the past. Great to see that they are making big deals that won't be affected by Mr. Markets sentiment and will provide steady streams of cash.

 

Where's the beef?  ;)

 

* Buy out the business or have a very large position, so that Mr Market has very little to say in the matter - Control

 

* Steady streams of cash 

 

* The Warren Buffett Way

 

These are the luxuries of having the elephant guns, otherwise investors have to ride coat tails.

Link to comment
Share on other sites

 

 

Mediocre business at best as beef prices have almost doubled over the last 2 years. This is obviously reflected in the price they paid. Classic Graham.....they are very different then berkshire...this business could be very bad. However, they feel they are protected by the cheap price. I trust their judgement as  they are extremely smart.

 

Dazel.

Link to comment
Share on other sites

From way back in the dark ages when I did some feed lots, ranchers and packing houses, the bottom line isn't based on the price of beef but getting their x.xx per pound for cutting the steer up.  If they know what they are doing they can hedge the price. The poor ranchers can't.

Link to comment
Share on other sites

Some news that rational investors use to buy more instead of being scared.  ;D

 

Ian Cumming & Joepeh Steinberg, one of the best investor duo next to Buffett/Munger and Watsa/Chou, may get downgraded. I sleep very well being LUK long  :)

 

Do I love silly announcements.  ;)

 

Moody's eyes ratings downgrade for Leucadia

 

http://finance.yahoo.com/news/Moody-eyes-ratings-downgrade-apf-1464092740.html?x=0

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...