Parsad

A face only a mother could love...or happy BAC shareholders like myself! Absolutely love this guy. He's somehow managed to turn the Titanic around. Now if Brian Burke could only do the same with the Toronto Maple Leafs, Ontario might have something to cheer about! ;D Cheers! http://www.reuters.com/article/2012/03/01/us-bankofamerica-idUSTRE8201G620120301

Article on how the U.S. government believes Hank Greenberg's suit should be rejected. I would agree! Cheers! http://www.bloomberg.com/news/2012-03-02/greenberg-s-25-billion-aig-claim-must-be-dismissed-u-s-says.html

Biglari decided that he wanted more of the pie for himself, and he took it. This unquestionably leaves a smaller percentage of the pie for other owners. The question is now whether he will make the pie bigger than it would have been had he not enacted the compensation agreement (and in turn leave other owners better off on an absolute basis). I think any intelligent and rational individual should stop at the end of the first sentence above, and then ask him or herself..."Does anything else he does matter after this point?" The answer is obvious, but many seem too beholden to the possibility they may enrich themselves alongside him. The fatted pig who walked the path with the chicken and the wolf was laughing after the wolf ate the chicken. Unfortunately he was too busy laughing to realize he was next! Cheers!

Looking average. Cheers! http://www.bloomberg.com/news/2012-03-01/north-american-rail-freight-carloads-for-feb-25-table-.html?cmpid=yhoo

I agree. I checked the duration of their bond portfolio yesterday over the last couple of years, and found it unusual as well, relative to their comments about interest rates. Maybe they are hedging their bets! ;D Cheers!

We don't get those wide swings in the price anymore usually, because for the last three years or so, I always eat lunch at my desk. Yesterday it was left over stir fry from the night before...nothing unusual...just spicy! Cheers!

Always a good read, and one of the best insurers in the business. Their views, not unlike Buffett's, seem to contradict Prem's views. Markel expects interest rates to rise...not a question of if, but when. Cheers! http://phx.corporate-ir.net/phoenix.zhtml?c=104364&p=irol-reportsAnnual

Article on Buffett and BNSF. Cheers! http://www.bloomberg.com/news/2012-03-01/buffett-poised-to-win-wager-on-america-with-burlington-freight.html?cmpid=yhoo

Article on Fairfax's suit, the hedge funds that have been dismissed, and the suits remaining against Exis Capital and Morgan Keegan. You can say what you want about the evidence against SAC and Kynikos, but the evidence against Exis seems pretty significant. And the fact that Morgan Keegan terminated Gwynn for front-running reports on Fairfax to certain hedge funds is pretty damning. Cheers! http://www.bloomberg.com/news/2012-03-01/fairfax-s-once-sprawling-racketeering-suit-shrinks-as-hedge-funds-drop-out.html?cmpid=yhoo

Article on Wilbur Ross. Cheers! http://www.nytimes.com/2012/03/01/business/wilbur-ross-with-succession-question-faces-challenge-in-raising-new-fund.html?pagewanted=1&_r=1&partner=yahoofinance

They'll be close this year, but no cigar. I think the Fed is still concerned about shocks to the system and making sure there is no repeat of 2008's liquidity crunch. Another year of cash flow, resolution of more litigation, additional capital added to the balance sheet, and more bad loans run off the book. The markets will start to recognize that as the year goes by...still say tangible book by Christmas and book within two years. Cheers!

Good article on Steven Sinofsky, the man behind Windows 8. Cheers! http://www.theglobeandmail.com/news/technology/business-technology/is-this-microsofts-next-ceo/article2352294/

ragnarisapirate, Firstly, apologies for the really late response to this. I'd meant to respond earlier. Re. the impairment to IV as a result of Sardar's compensation arrangement, reason dictates that the most fundamental assumption in your (and all the detractors') valuation, albeit implicit, is incorrect. The future will show it. Best, Ragu I think you'll find in hindsight ten, twenty years from now that you are incorrect here. How much do you want to bet that at some point in the future, he's going to lift that $10M cap once he can get enough votes and has done enough to pass it. Cheers!

Hi Carl, They are reporting before the markets open on Friday, so there is nothing to write about. I think the critics are mainly bothered by companies that report on Fridays AFTER market close...not before. Cheers!

Fannie and Freddie are unloading some of their foreclosures. Cheers! http://www.cnbc.com/id/46545642

Yup, he's pretty stupid and annoying. Pretty bad rug too! ;D Cheers!

I'm just saying. Are they going to be like Kynikos and build their reputation like Chanos on one big call (Enron) or is there more. It's a redundant question pertaining to the article. Cheers!

not for nothing, according to NHL.com "In a shocking trade of top prospects, the Canucks traded Hodgson, a 22-year-old who had 16 goals and 33 points despite playing less than 13 minutes a night, to the Buffalo Sabres shortly before Monday's deadline in exchange for Zack Kassian," Canucks need more grit + toughness which Kassian will bring(that usually helps in playoffs though Kassian is only 20 years old), Canucks have plenty of pretty boys like Hodgeson. You ll like Kassian. I hope so, but it's tough to replace a 20+ goal scorer who scored some big goals for us and will be a good player for years to come. If Kassian helps us win the Cup, all will be forgiven! ;D Cheers!

What the hell are my Canucks doing? They traded away top rookie Cody Hodgeson to Buffalo for nothing! They gave up a future point a game player, and two-way centre for nothing. The Canucks have frozen their fan message board, so I have to vent here! Insane! :o Cheers!

Article on Muddy Waters. One hit wonder? Cheers! http://www.bloomberg.com/news/2012-02-27/muddy-waters-losing-support-in-market-as-latest-calls-prove-inconclusive.html

Article on how Buffett's tax views has garnered him a whole host of new critics. Cheers! http://www.businessweek.com/lifestyle/the-warren-buffett-haters-club-02272012.html

Here are the CNBC interviews and transcripts: Part I: http://www.cnbc.com/id/46541258/ Part II: http://www.cnbc.com/id/46541556/ Part III: http://www.cnbc.com/id/46543484/ Part IV: http://www.cnbc.com/id/46543864/ Part V: http://www.cnbc.com/id/46544371/ Part VI: http://www.cnbc.com/id/46544809/ Part VII: http://www.cnbc.com/id/46546596/ Part VIII: http://www.cnbc.com/id/46546992/ Cheers!

By the way, if ABH is defrauding minority shareholders of FBK by stealing the company for $1/share, then would it not make sense for FBK shareholders to simply tender to ABH in lieu of ABH shares? All these shareholders could have easily sold their stock for $1.30 or better in the last week in the open market if all they wanted was cash. So what is the big stink about when they could easily receive ABH shares...who are apparently stealing away a company with $70M in 4th quarter losses and barely any cash on hand. Incidentally, does this sound like a company that is worth $1.30? They need cash pretty badly! By the way, I call bullshit on (i) and (iii) below. Let's call a spade a spade...FBK's management is crappy. Mercer and Fibrek also entered into a special warrant agreement (the “Special Warrant Agreement”) pursuant to which Mercer agreed to purchase 32,320,000 special warrants of Fibrek (the “Special Warrants”) on a private placement basis, at a price of $1.00 per Special Warrant for total subscription proceeds of $32,320,000. The Special Warrants are convertible into Common Shares of Fibrek on a one-for-one basis. Proceeds from the Special Warrants are initially to be used by Fibrek to reduce the amount drawn on its ABL Credit Facility given (i) the recent costs associated with its strategic alternatives review process in response to Abitibi’s Insider Bid, (ii) the high level of RBK Pulp inventories and lower than anticipated sales which have resulted in a 5-week market shutdown of the Fairmont Mill effective February 20, 2012, and an increased need for liquidity, and (iii) capital expenditures required in connection with Fibrek’s power-generation initiatives and other growth and diversification opportunities. Cheers!

We know: FBK advised FFH management, in good faith, of their intent to execute a value enhancing acquisition. Had the acquisition proceeded ALL shareholders would have owned a smaller share of FBK that was worth more, but there would supposedly have been a diluting share issue. We know that at about the same time 1) FFH rejected a solicitation from Merc for their FBK shares at $1.00/share, & 2) ABH was negotiating for a hard lock-up with FFH/Oaktree/Pabrai. - The ABH lock-up was rushed to spike FBK’s deal & avoid dilution of the combined FFH/Oaktree/Pabrai stake in FBK. It deprived FBK shareholders of the acquisitions value enhancement, circumvented the governance we pay our senior management to do, and could not have been accomplished without the FFH explicit agreement to enter a hard lockup. The transaction was a clear minority shareholder abuse, it defrauded all shareholders except FFH/Oaktree/Pabrai, & it was abetted by FFH/Oaktree/Pabrai. You have no idea whatsoever what the "value enhancement" from the acquisition would have been. It could very well have been a terrible acquisition, and Prem/Oaktree/Pabrai are preventing such an acquisition by their lock-up with ABH. They are probably in a much better position to judge this than you are. And if they think it is bad for them, then it is probably bad for the minority shareholders as well. - There is no reason to believe that existing shareholders would have been denied the opportunity to maintain their existing proportionate ownership, or that there would not have been a subsequent share consolidation to bring the trading value of FBK’s shares > the minimum $5/share institutional threshold. If it wished, FFH could have chosen not to participate, allowed its holding to dilute, & sold consolidated shares into a stronger & more liquid market after the fact. This is pure speculation! Did FBK announce that they were considering a share consolidation? Deal with the facts please. - Give FFH/Oaktree/Pabrai the benefit of the doubt, & assume they didn’t fully realize what “it’s just business” really meant. The lock-up abets a transfer of the IV of FBK minority shareholders to ABH shareholders at below fair value. At above 66 2/3% FBK minority shareholders will be forced to accept an offer on the ABH terms of $1.00/share at best –materially below Merc’s competing price of $1.30/share. A “just business” current defraudment of $0.30/share that is not possible without the explicit lockup consent of FFH/Oaktree/Pabrai Again, explain to me how minority shareholders were deprived from realizing the full value of their shares. They could have sold millions last week at well above the $1.30 offer price. And the assumed "$0.30/share" that they have been defrauded assumes what the true value of their shares would have been correct? Then why is Mercer buying 32M warrants at only $1.00! Who is defrauding whom? - We know from the recent 51.5% tender that ABH/Steelhead/Other Affiliated have been buying FBK, & that the shares could only have been purchased at well > the $1.00 ABH offer price. Within the terms of the ABH bid, the purpose can only be to coerce a tender > 66 2/3% & perpetrate a defaudment on FBK minority shareholders. Rubbish! This is actually libel...that you are accusing ABH and Steelhead of a coordinated fraud. Whatever shares they are buying is no different than boardmember here who were buying at $1.00 or higher, speculating that this deal may get done for a little more. If ABH is buying shares to solidify their ability to close the tender, then that is one thing. To say that Steelhead and ABH are working together is libel. - We know that ABH unsuccessfully attempted to spike the Merc offer of $1.30, & that FFH/Oaktree/Pabrai publicly supported that ABH effort. FFH/Oaktree/Pabrai have a fiduciary obligation to their shareholders & investors to maximize the value of their holdings – & they cannot meet that obligation unless their opportunity gain on the ABH side of this transaction exceeds their opportunity loss on the FBK side. To take this approach, is to imply that FFH/Oaktree/Pabrai are in full agreement with the intent to defraud. “It’s just business”. I think you are confusing taking care of their shareholder interests versus taking care of everyone's interests. I believe that some level of this type of accusation was thrown at Fairfax earlier by some shareholders regarding their purchase of Odyssey. It's their responsibility to take care of their shareholder's first. Just like it's FBK's executives responsibility to take care of their shareholders as well. Do you believe selling 32M in $1.00 warrants to Mercer to be in FBK minority shareholder's interest? Or would you categorize that as "It's just business." - We know that if FFH/Oaktree/Pabrai were released from the lock-up tomorrow, & the ABH bid put on the same 50%+1 terms as the Merc bid, the ABH bid would fail. It would fail because it is below the $1.30 Merc bid, & FFH/Oaktree/Pabrai have each have the fiduciary duty to tender to the highest offer. As FFH/Oaktree/Pabrai have not spoken out, ABH has not released the lock-up, or matched the Merc $1.30 bid - we can only conclude that ABH intends to defraud by coercion, & that FFH/Oaktree/Pabrai have agreed to it. Glad you can read their minds Sharper! Cheers!

The title of the thead says "Fairfax's action on Fibrek - is it fair to the minor shareholders?". Who else are you talking about? Cheers! okay, let's say Prem loves the deal but does it mean it's fair to us? okay, let's say Prem thinks FBK management sucks (which I agree), does it mean it's fair to us? What I'm saying is that we don't know exactly what Prem thinks, and it's probably unlikely that he's supporting a specific decision where it may not be entirely beneficial to minority shareholders simply because he wants to make a buck or take over Fibrek. Let's see what he has to say about all of this in the next month or two. In the meantime, the market in the last week gave minority shareholders an opportunity to reap a price better than the best deal offered. If minority shareholders didn't take it, how is that Prem's fault or even Abitibi's fault? I think some shareholders were waiting for the deal to be bid even higher and that's a risk they decided to take. Cheers!