Fairfax sells Chorus Aviation shares

[wknecht]

http://business.financialpost.com/2013/02/12/fairfax-sells-off-all-chorus-aviation-shares/

 

I hadn't even heard of this small investment, but looks like the proceeds from the sale will be around $4.30 a share. Not sure what the cost was.

 

EDIT: I meant $4.30 per Fairfax share.

[onyx1]

Chorus is a Canadian regional operator.  Similar business to SkyWest and the Republic Airways here in the US.

[StubbleJumper]

Prem allowed FFH to hold a $90m investment in an airline?  He has always struck me as a fellow with a strong understanding of the history of financial markets and on the economics of the various sub-industries, so the original purchase of airline shares seems counter-intuitive. 

 

 

SJ

[JEast]

I was a very cheap REIT at the time of purchase (i.e. the old Jazz Income Fund).

 

Cheers

JEast

[Daphne]

At current price dividend is about 14%

[PED]

"so the original purchase of airline shares seems counter-intuitive" : Indeed!!... single reason why "investment" is the business of"never say never".

When run by excellent managers (owner-founder), it can be a decent (but not a fantastic) business, and resulted as great investment.

Dart group, (UK based, leisure airline's Jets2com) is "THE" example of a "counter-intuitive" opportunity achieving profitability since 1985 (?) free of debt(!), owning their (all second hands) planes (except 2 or 3 leased ?), still growing wisely, trading around 6-7X, flying stealth for years, including from the "investment radars". ;)

PED

 

PS: not sure to understand how well FFH did with Chorus.

[MrB]

Give Ryanair some respect.

It is an airline and a fantastic business!

 

There, I said it. No I'm waiting to be kicked off the board  ;D

[benhacker]

Looks like the 18m shares were directly from Jazz purchases which they did over a few years if I recall... looks like (from historical quotes) they were buying I think around $3.00 to a little over $4 maybe.  Dividend was 0.05 / month roughly.  Probably a decent but not stellar return given this was a purchase made when some things were really cheap.

 

Ben