junto.investing

For anyone involved or following - Remy International, which was spun out of FNFV has signed an agreement to be acquired by BorgWarner for $29.50 in cash: http://finance.yahoo.com/news/remy-signs-definitive-agreement-acquired-120000012.html Their presentations always do a nice job of mapping out their next steps / monetization efforts: http://www.investor.fnf.com/common/download/download.cfm?companyid=FNT&fileid=826412&filekey=FA2E30BA-3BED-4029-A52A-2D243E012CB0&filename=Investor_Update_FNFV_May_2015.pdf

How much of an opportunity is there to reduce expenses? When MA and V went public this was a huge source of value creation. As independent companies they were able to drastically reduce expenses. Revenue grew and continues to grow at a faster clip than expenses. In each of the past two years PYPL has grown revenue by 19%. But expenses have grown at roughly the same pace, 17% and 19%. This might just be a result of being trapped inside of eBay. I'd have to think there's an opportunity to reduce or stabilize expenses, which would make current valuation much more attractive.

I plan on holding the shares I receive from the spin. But I'm not adding at this price.

When issued trading begins July 6th.

Thank you liberty. This is one stock I was so looking forward to this year. Hope it trades at a reasonable price to allow me to accumulate. Any guesses /estimates as to price? My quick rough estimate gets me to about 100 bucks a share Edit: just saw the when issued trading at around 38. Maybe I am missing something here. Assuming 45 mill of shares outstanding (5% of 880 mill lbty shares), gives this a market cap of approximately 1.7 bill. Adding the 2 BIL in debt, gives EV of 3.7 bill. This is just 8x 2014 OCF and 3x 2014 Revs. Market cap is only 8xfcf. Seems very cheap compared to the parent. What am I missing? If you can get it at $38 - agreed, it's cheap. However, the spread on this thing has been crazy.

Competition is my biggest concern. But in addition to fraud protection, I'd think there has to be an advantage in their infrastructure and scale. 4-5 years ago would've been much more interesting, but there's still a ton of opportunity here. Surprisingly cash and check are still the preferred methods of payment worldwide. This is a huge market. So even with some competition, they should continue to get their fair share. They also have a head start here. eBay is loading them up with cash and they generate significant FCF. As an independent company, they'll probably start acquiring some of their competitors more aggressively.

I don't think a date has been set yet. I was mistaken in suggesting it was July.

Lots of spinoffs coming up in July*. PayPal is probably the most notable. I'd say most are probably bullish on this one. Given the name and distribution ratio, I don't know that there will be an immediate attractive entry point. Ultimately, the opportunity might be in eBay stub. In any case, what's the bear case on this one? What could potentially drive new owners to sell? *For those that are interested the other spinoffs I'm referring to are NI/CPGX, ENR/EPC, GHC/CABO, and LBTYA/LILA

Great points. Completely agree that New Charter offers substantial value (I believe that is what you were implying). I've structured accordingly and am long LBRDA/K, CHTR, and TWC (in order of size).

I think there is a good chance this goes through. Anyone who is a TWC client knows TWC currently leaves much to be desired. Not saying things will improve much under CHTR - but it won't be hard to make a strong argument. On the downside, I don't know that it will go all the way back down to pre-Comcast talks. This industry is in a consolidation phase. One way or another TWC will participate.

I've been pleasantly surprised at how quickly they've taken these actions. I used to own JAX, so I'm interested to see where it trades once it's spun out. Are you paying attention to FNF as well? They're spinning Black Knight, which has some nice prospects.

folks, thanks for all the solid suggestions. ev, i will certainly contact you with regards to RIA's in my state. really like the brk idea, especially with some sort of instructions/restrictions in place. finally, never really gave thought to insurance. always thoughts it'd make more sense once we started having kids. but i'll have to look into premiums, etc to see if it's something that makes sense. the way you've described it, certainly seems like a viable and prudent option. thanks again

Apologies in advance for the morbid subject, but unfortunately, death has become a common occurrence within the family in the past year. Naturally, it's got me thinking how to best prepare in the event that I pass. Some quick facts about me - in my early 30's, wife, no kids. In a perfect world, I'd simply have a close friend advise my wife, should something happen. But, my friends, much as I love them, don't have much interest in investing. I don't qualify as an accredited investor, so hedge funds are out. In terms of mutual funds, I like Fairholme and Wintergreen. And of course, there's always the S&P index. So for now, I'm thinking she could just dollar cost average into these, but I'd love to hear others thoughts/opinions on the matter. An ideal solution, would require little to no effort on her part - an automated plan, so to speak.

I would guess that most people on paypal use it with their credit card, no? I guess over time there could be a movement to direct account linking, but for that paypal would have to make people feel as safe as CCs which protect people from most forms of frauds right now. Liberty, this is a crucial point. V, MA, and AXP have all built global brands that are trusted and respected. This doesn't happen overnight. It will take a while for consumers and businesses to fully trust new mobile payment platforms.

Nice pick. Trader Joe's is a fascinating business. Extremely well run.