giofranchi

FDA Approves 28 Additional Styles Of Allergan's Natrelle® 410 Highly Cohesive Anatomically Shaped Silicone-Filled Breast Implants http://phx.corporate-ir.net/phoenix.zhtml?c=65778&p=irol-newsArticle&ID=2076275 Gio

Liberty Media Corporation Reports Second Quarter 2015 Financial Results http://ir.libertymedia.com/releasedetail.cfm?ReleaseID=925877 Gio

Endo Divests Non-Core Business Lines from Litha Healthcare Group International Business, Enhancing Focus on Specialty Pharmaceuticals http://www.endo.com/news-events/press-releases Gio

Allergan and KYTHERA Announce that Pending Transaction will now be for All-Cash Consideration http://phx.corporate-ir.net/phoenix.zhtml?c=65778&p=irol-newsArticle&ID=2075975 Gio

It means that I would be more careful from now on about investing in a company that spends lots of money from 2011 to 2015 in building a strong franchising network, the results of which might start becoming evident no sooner than 2016… even if I think it is the right strategy and the right way to invest shareholders’ capital. I used to think I wanted long term thinking whatever the short term results might be, but I have changed my mind: now I want to see both long term thinking and good short term results. Impossible? I think the companies I have bought redeploying the proceeds from my sale of BH and FFH have both displayed satisfactory long term thinking and posted strong business results during the past 5 years, and are well positioned to go on for the next 5 years. We will see! Cheers, Gio

No, not the same reason… You have already asked me… It might be… I don’t really keep track of my portfolio turnover ratio: when I change my mind, and when I find something that I like more, I sell the old and buy the new. Gio

Btshine has asked me through a PM why I sold some BH. Basically, two reasons: 1) I think Biglari wants to buy much more stocks personally, and this process will take time. Given the fact he probably wants to buy them at bargain prices, the stock might continue to trade at a discount to a SOTPA valuation. 2) And probably the true reason: I used to be looking for companies with very long runways… the longer the better! But no more… I have changed my mind. Now I prefer companies which I think will do very well (meaning will make much money) during the next 5 years. I don’t like a much larger timeframe anymore… Because investing for long term results, in spite of short term pains, is good but many times I have witnessed might go to the detriment of the “sense of urgency” always needed in any business. Also, as an investor, when I see a very long runway, I tend to be “forgiving”: if I like what I see, I tend to be patient for a very long period of time… for too long! This might be dangerous imo for outside investors: we will always have information about a business that are incomplete at best, and business results are in the end the only thing we could truly rely upon. Given the fact BH runway is so long, I don’t really mind missing the first part of the ride! Cheers, Gio

He bought another 7,875 shares in the public market on July 30-31. $254 - $257 USD https://www.canadianinsider.com/company?ticker=VRX Good to know: I also bought more yesterday! ;) Cheers, Gio

I take this one! ;) Cheers, Gio

No no! ;D ;D Cheers, Gio

http://seekingalpha.com/news/2688325-transdigm-group-misses-by-0_01-misses-on-revenue?app=1&uprof=25 Missed on revenues, but still a solid quarter imo. With 2.6% organic growth. Gio

http://www.transdigm.com/phoenix.zhtml?c=196053&p=irol-newsArticle&ID=2075297 Gio FY_2015_Third_quarter_earnings_call_.pdf

I agree. Though I try to uncover and read every single short thesis of any investment of mine. I think it is never really a waste of time… If they are bad and loosely put together, well then nothing to worry about! ;) Cheers, Gio

Also, to compare companies like TEVA and GILD with VRX makes very little sense to me… Gio

Valeant Pharma Exciting But Fairly Valued http://seekingalpha.com/article/3389595-valeant-pharma-exciting-but-fairly-valued?app=1&auth_param=7i5hb:1aruon4:99f8e6b7f7fffec7b56d3c3126a678f1&uprof=25 Of course an 11% discount rate for VRX is too high imo. Second, even if revenues growth stops 5 years from now, FCF per share might still grow significantly through a deleveraging process and buying back shares: a growth rate of 4.8% for years 6 to 20 and then 3% in perpetuity cannot imo describe what will probably happen with VRX. Gio

Sorry! My fault! I think revenues are much more indicative of the runway still left for both companies: VRX surely has more room for growth, but I would be very surprised if AGN wouldn’t double in the next 5 years! Then, of course, the recent sale to TEVA imo highlighted the fact that revenue growth is not the only way both companies have to create shareholders value: 1) aggressively deleveraging their balance sheets surely is another (which is what has happened thanks to the recent sale of AGN’s generic business); 2) buy backs might be a third way to create shareholders value; 3) and finally spin-offs or strategic sales (like the recent one to TEVA) might be a fourth way. Therefore, who knows? They both might be able to go on creating shareholders value, even after rapid revenues growth is finally over. What are your thoughts on AGN? Never taken into consideration as a diversifier? Gio

--Daniel Loeb, Q2 2015 Letter From the website of ROP: Jellison is 69 and could be at the helm for the next decade. Cheers, Gio

--Daniel Loeb, Q2 2015 Letter 1) $15.5 billion in revenues after the recent sale to TEVA, compared to $11 billion in revenues at VRX. 2) $130 billion in market cap, compared to $115 billion of VRX. 3) Very similar strategies. 4) A very reasonable P/E multiple. 5) The main worry was they had paid too much for Allergan, but the recent sale of a mature business for 17x 2015 EBITDA to TEVA should solve any problem. 6) A balance sheet that is not levered, and therefore could be levered back again quickly, should the right opportunity come. I think VRX’s performance will be better than AGN’s, but what about AGN as a way to diversify? Spreading the risk over two companies, instead of putting all the eggs just in VRX? Cheers, Gio

jeyfox, your web site seems to be quite interesting! What about those who do not speak French? ;) Cheers, Gio

Some not so great news... http://www.forbes.com/sites/dougbandow/2015/07/30/india-losing-opportunity-to-become-next-great-power-narendra-modis-faltering-revolution/ Gio

Q2 2015 Results. The two meaningful investments recently announced were made after the end of the quarter. Cheers, Gio 2015-Q2-Press-Release-FIH-Final.pdf

Couldn't agree more! :) Gio

Yes! That’s what I said before: you don’t want them to diversify away from the iPhone (have I written it right this time? Ahah!!), instead you want them to concentrate on making it ever better. To this add the ecosystem stuff and you get a wonderful short answer! Why all the "mystery" to get here I still don’t understand… doesn't matter! ;) Cheers, Gio

I was asking why it is not risky to have such a large percentage of revenues derived from one single product. Wasn’t it clear? The answer: because, if you buy that single product, you get access to an entire ecosystem which offers much more than that single product and from which it is very difficult to exit. If true, it is a good answer indeed! One of many possible answers?! Ah! Come on! You must be kidding me! ;D Gio

Mmm... Nothing to add! ;) Ok! This is good! Was it so difficult to give me the short answer?... Usually, this is how I proceed: first the short answer, if it convinces me, and only if it convinces me, then I am willing to read 459 pages! ;) No, you misunderstood my intentions! Gio