shalab Posted January 5, 2011 Share Posted January 5, 2011 I dont own FMMH or BH. I think Biglari made the initial offer for BH at $19 or there abouts - don't remember the exact amount. Now he is making an offer at $31 roughly an year out. Now, if the management waits another year, the offer may go up to $40. Can't fault FMMH here for holding out ;D Link to comment Share on other sites More sharing options...
Parsad Posted January 5, 2011 Share Posted January 5, 2011 Sanjeev, how much do you know about Stilwell? And how confident are you with the stated book value? Not terribly. I've never owned Kingsway, nor was I interested in the past. But I'm more intrigued now at these prices after the fall, and now that they've sold a number of assets. We still don't own it, as I'm still working my way through the issues there and the risks involved, and examining exactly if there is an activist opportunity there. I'm not a pay up for a good business type of guy, let alone pay up for a business run by a guy like Dunning. Cheers! Link to comment Share on other sites More sharing options...
PlanMaestro Posted January 5, 2011 Share Posted January 5, 2011 Not terribly. I've never owned Kingsway, nor was I interested in the past. But I'm more intrigued now at these prices after the fall, and now that they've sold a number of assets. We still don't own it, as I'm still working my way through the issues there and the risks involved, and examining exactly if there is an activist opportunity there. I'm not a pay up for a good business type of guy, let alone pay up for a business run by a guy like Dunning. Cheers! Parsad, could you share your views on KFS? With a substantial part of the equity in cash (after the sell of the Canadian business), an aggressive expense reduction program and buying their debt at a discount it seemed like there was an opportunity. Also Stilwell was buying at prices higher than $4 in Nov 2009 and it looked like they only needed to solve the Lincoln issues for a fine turnaround. However, they have been unable to fix the loss ratio of a short tail American business after more than two years. Do you understand why they have not stopped u/w at these rates? Also regarding the spinoffs of some of their divisions, I am still in the dark for the reasons. Do you know what they are trying to achieve? Link to comment Share on other sites More sharing options...
Ballinvarosig Investors Posted January 5, 2011 Share Posted January 5, 2011 That article about Biglari stealing Fremont was a hoot. For one, can anyone name me any thinly-traded company on the OTC market that trades at fair value? Secondly, the article completely ignores the two most recent quarters for Fremont. If you look at the last two 10Q's, you'll see that underwriting losses have ballooned in their personal lines business and that the combined ratio will almost certainly finish the year at over well over 100%. Ignoring book value growth (which really has only been a result of a rising market), does anyone really think that an illiquid insurer with poor underwriting really deserve a premium price? In my opinion, $28 (which is about book value, is what Fremont is actually worth). the $31 offer is a fair premium that an acquirer should have to pay. Disclosure: I sold up after the $31 offer was announced. Link to comment Share on other sites More sharing options...
mmiller Posted January 12, 2011 Share Posted January 12, 2011 http://finance.yahoo.com/news/Fremont-Michigan-InsuraCorp-prnews-742570257.html?x=0&.v=1 mmiller Link to comment Share on other sites More sharing options...
shalab Posted January 12, 2011 Share Posted January 12, 2011 http://finance.yahoo.com/news/Fremont-Michigan-InsuraCorp-prnews-742570257.html?x=0&.v=1 Seems like the board is doing the right thing here... Link to comment Share on other sites More sharing options...
Ballinvarosig Investors Posted January 12, 2011 Share Posted January 12, 2011 That to me sounds like the Board will fight the takeover. The special committee also disclosed that it retained Philo Smith Capital Corporation as its financial advisor to explore a broad range of strategic alternatives to enhance shareholder value. These alternatives include, but are not limited to, a revised business plan, operating partnerships, joint ventures, strategic alliances, acquisitions, exchange listing applications, a recapitalization, and the sale or merger of Fremont. Link to comment Share on other sites More sharing options...
OracleofCarolina Posted January 13, 2011 Share Posted January 13, 2011 Gteat for shareholders unless they are able to stall long enough that Biglari withdraws his offer Link to comment Share on other sites More sharing options...
dcollon Posted January 14, 2011 Share Posted January 14, 2011 This is good stuff http://www.businesswire.com/news/home/20110113006626/en/Letter-Gideon-King-President-Loeb-Capital-Management Link to comment Share on other sites More sharing options...
SmallCap Posted January 14, 2011 Share Posted January 14, 2011 That was a beautiful letter, thanks for posting it. A very entertaining read and I don't think they are exaggerating at all. Link to comment Share on other sites More sharing options...
Parsad Posted January 14, 2011 Share Posted January 14, 2011 Good letter, but it won't do anything. These guys are entrenched! They will go to the courts or find an alternate buyer before they sell to Sardar. Cheers! Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 14, 2011 Share Posted January 14, 2011 Perhaps the Michigan school systems suck, and students are thought that $31 is less than $27.50 or whatever the current stock price is. What a bunch of jokers. Disclosure - no position in FMMH or BH Link to comment Share on other sites More sharing options...
Guest Bronco Posted January 14, 2011 Share Posted January 14, 2011 guess I shouldn't pick on school systems with grammar mistakes in the same sentence. will get coffee now. Link to comment Share on other sites More sharing options...
Alekbaylee Posted January 14, 2011 Share Posted January 14, 2011 Meanwhile, BH is up up up! $450? What the heck is going on here? Link to comment Share on other sites More sharing options...
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