Parsad

I've watched boxing about as long as I've watched hockey, soccer, tennis and football. HBO has a terrific sports documentary called 24/7, which usually focuses on boxing, but has recently focused on hockey as well. Actor Liev Schreiber narrates, and 24/7 has won numerous awards over the years. They've just started a shorter six-part series on boxing trainer Freddie Roach, who was a fighter turned trainer, and has taught some of the best boxers in the last decade. Roach suffers from Parkinson's and the new six-part series focuses solely on him...arguably the greatest trainer in boxing history with the number of world champions he's coached in such a short span. This series actually has no narration, except for the occasional comments by Roach himself. The first episode was on tonight, and I have to say it's probably one of the most poignant sports documentaries I have ever seen. A brave, but sad undertone, to the distinguished career Roach has established in the world of boxing. A man who doesn't feel cheated, but actually fortunate to do what he does every day, and will continue as long as his body can hold out. Great documentary! Anyway, I thought I would give any members who enjoy sports a heads up. Cheers!

and mortgages is still the most important stress ahead. I have both but Citi seems to be on the fast lane and also very cheap. Thanks Eric, love your comments. I would be careful with Citi. Their exposure to Asian markets may (probably) will come back to haunt them. We own only BAC and WFC. As mentioned, I'm more confident in U.S. banks and the financial system than any other part of the world at the moment...including Canada! Our bet is on the U.S. coming back, while the rest of the world struggles. Cheers!

More sellers than buyers! ;D I suspect the ex-dividend date, along with capital moving from safer, hedged investments to undervalued, distressed investments. Cheers!

Article on treasury returns so far this year. Cheers! http://www.bloomberg.com/news/2012-01-20/treasuries-set-for-biggest-weekly-loss-in-a-month-before-home-sales-data.html

December sales numbers: http://www.cnbc.com/id/46070422 Cheers!

Looks like bondholders are close to taking a 70% haircut! Higher than I expected...50% is what I thought was fair. EU should legislate strong measures now against Greece and hold them up to strict fiscal measures for the next ten years! Cheers! http://www.cnbc.com/id/46064939

Article on Megabrands suit against Lego. Cheers! http://www.theglobeandmail.com/globe-investor/mega-brands-drops-lego-suit/article2309312/

Thanks ValueInv! Exactly what I was looking for. Looks like we are more than half way through and we should see some stabilization in the next 12 months, with an upturn in starts in 2013 based on demand and supply. Cheers!

Dr. George Athanassakos, who runs the Ben Graham Centre For Value Investing at the Richard Ivey School, has organized the 2012 Value Investing Conference for April 25, 2012, from noon to 6pm at the Board of Trade in Toronto. Speakers include David Winters, Mohnish Pabrai and the CEO's of MegaBrands, Resolute, Sandridge Energy & Kennedy Wilson. Works out perfectly for those attending our dinner from 6pm on! Details are at the link below: http://www.bengrahaminvesting.ca/Outreach/2012_conference.htm Program: http://www.bengrahaminvesting.ca/Outreach/Conference_Program.pdf Cheers!

Dr. George Athanassakos, who runs the Ben Graham Centre For Value Investing at the Richard Ivey School, has organized the 2012 Value Investing Conference for April 25, 2012, from noon to 6pm at the Board of Trade in Toronto. Speakers include David Winters, Mohnish Pabrai and the CEO's of MegaBrands, Resolute, Sandridge Energy & Kennedy Wilson. Works out perfectly for those attending our dinner from 6pm on! Details are at the link below: http://www.bengrahaminvesting.ca/Outreach/2012_conference.htm Program: http://www.bengrahaminvesting.ca/Outreach/Conference_Program.pdf Cheers!

I like both those exchanges Txlaw, and I feel very much in line with what was said about buybacks/capital ratios and the general strength of U.S. banks. I'm more comfortable owning U.S. banks presently, in particular large, national U.S. banks, than any other region in the world right now...more so than Canadian banks, more so than Asian banks and definitely more than European banks. Cheers!

The JP Morgan conference call indicated that there is a race to the top -- there were some comments made surrounding their wanting to get to fully phased in Basel III compliance sooner rather than later. It seems this is what they see as the measuring stick that separates the men from the boys. Then the Bank Of America release stated that they were "in line with peers" -- as if that's the end all and be all place to be. So I guess maybe it is. At least it's a lower risk strategy. Well, if the company won't buy more shares on your behalf perhaps you should fork over some of your own money. I think investors have to remember that things aren't completely rosy out there. If you have a significant event occur, banks as very leveraged institutions would be vulnerable. They could buy back shares with excess cash, but would that actually make the bank stronger and less impervious to such events? The answer is obviously no. So they really need to get to a level of capitalization where there is tremendous strength in the balance sheet, and then they can explore buying back shares or paying a dividend. But getting their capital ratios higher is the best thing to do. I don't think they need to sell any more shares. They could easily raise more cash by selling and then leasing back just their core offices in various cities, as well as selling other non-core businesses. The announced cuts, drops in loan servicing, and existing cash flows will be enough to reach Basel III compliance in the time-frame they have. Cheers!

Buffett was at a club in NYC last night chilling with Jay-Z! Some good pictures. Cheers! http://www.huffingtonpost.com/2012/01/19/warren-buffett-jay-z-diamond_n_1216458.html

Starts are at an all-time low: http://www.bloomberg.com/news/2012-01-19/u-s-housing-starts-fell-more-than-forecast-on-drop-in-multifamily-units.html Government getting close to a deal on 1M foreclosures. Are we getting near the bottom of the housing debacle? Anyone have the latest inventory numbers? Cheers!

I agree. We all know what a fortress balance sheet means in business, and it certainly makes a difference in a leveraged business like banking when things get rocky. When investors have no doubt about their capitalization, the stock will make its way above book like Wells Fargo. Until then, it trades at a discount. Building a bank that customers know will be one of the last ones standing makes a big difference over the long-term. They are half-way there now, where they are as well-capitalized as their peers, but taking that next step is where they need to go. Cheers!

Carol Loomis covers the debt donation: http://finance.fortune.cnn.com/2012/01/18/warren-buffett-scott-rigell-match/?section=magazines_fortune Cheers!

Yup! And existing cash flows are already enough to cover legal expenses and legacy loan losses. They've reduced exposure to Europe...so really their business will be determined by how the U.S. economy behaves and the housing market here. Cheers!

You are correct Eric. They are mutually exclusive. The $5B in cuts is coming from just normal operating cuts at various levels...nothing to do with the separate legacy costs associated with the loan portfolios. The $11B number would be correct, and you should see cuts on both ends showing up quarter after quarter. As I said...lean and mean! You will have a business focused solely on core banking, running efficiently, with a solid balance sheet and a constantly improving loan portfolio. They'll be smaller than JPM and WFC long-term, but run as efficiently and as strong...if not stronger. This will be one of the greatest turnarounds in the financial industry once Moynihan is done...he managed to save the Titantic! Cheers!

Good article in Forbes. Cheers! http://www.forbes.com/sites/toddwoody/2012/01/19/warren-buffetts-long-quest-to-build-a-geothermal-power-plant/?partner=yahootix

Article in Investopedia about Fairfax. Cheers! http://stocks.investopedia.com/stock-analysis/2012/Fairfax-Financial-No-Stone-Goes-Unturned-FFH.TO-BRK-A-L-MKL-A0119.aspx?partner=YahooSA#axzz1jwZhGycA

Flat, but better than last week. Cheers! http://www.bloomberg.com/news/2012-01-19/north-american-rail-freight-carloads-for-jan-14-table-.html?cmpid=yhoo

Good article! Cheers!

Room for improvement of course, but I like the trend in all departments. Primarily stabilization in real estate loan losses and provisions, and overall their loan loss provisions are showing nice drops. We still have to see the impact from the $5B in operating costs that will be eliminated over the next couple of years...this thing is going to get lean and mean. I still see it hitting tangible common equity per share sometime in 2012...so the $12+ range per share. Based on their legacy loan portfolio, I would prefer if they used capital to increase Tier 1 common equity further, rather than distribute it in dividends. Some cash spent on share buybacks would be fine with me. Cheers!

I don't remember the quotes you referred to Carl, but I have on numerous occasions adjusted my views on LVLT primarily to ease the burden on a friend who has an ungodly sum tied up in LVLT...whenever emailed. ;D We've never owned LVLT in our personal, corporate or fund accounts other than some call options we owned briefly in 2008, lost money on, and sold. Batting 0% in actuality! My friend is batting 0% too! Cheers!

Level 3 has done nothing but grow the intrinsic value of the business. It is Mr. Market who has been so destructive on incorrectly placing a price on the worth of the business. Intrinsic value is all the cash that can be taken out of a business over its life and discounted back to the present. Take a look at the chart below and is cash coming out of LVLT or being sucked in by LVLT? http://financials.morningstar.com/ratios/r.html?t=LVLT&region=USA&culture=en-US Building the most advanced IP fiber optic network in the world is no easy task. Now the next stage is to deliver the content or goods, by hooking up the ends. The Super Bowl streamed live online is a prime example. Live streaming HD video over the Internet will bring in the big bucks. Probably, but is it enough to compensate for the annual capital costs required to build out and maintain the network, as well as pay back all of the debt the company has and will continue to accumulate? I have no idea, and I don't think you know either, and I'm pretty sure the executives at LVLT aren't sure as well. Why does FAIRFAX FINANCIAL HOLDINGS LTD/ CAN hold so many shares of Level 3 Communications? They own the debt too, so they've hedged their bets. If the company goes under, they get part of the network. If the company succeeds, they get their notes paid off and their shares go up. In the meantime, they've enjoyed and continue to enjoy some pretty nice interest payable on those notes. The worst thing that will happen to Fairfax is that they will break even over the years. The worst thing for just equity owners is they could get completely wiped out. Cheers!