jay21 Posted September 18, 2013 Share Posted September 18, 2013 8-K: http://www.sec.gov/Archives/edgar/data/1084580/000115752313004440/a50710907ex_99.htm Interesting quarter. I am still wrapping my head around IB F/S so take my comments with a grain of salt, but I found a few interesting things: Obviously, the headline numbers are the poor net income and low fixed income numbers. Principal transactions were negative so I think that a good chunk of the low revenue is due to their inventory being marked down. IB posted a good quarter compared to last quarter and last year. Advisory was up substantially since last quarter. Also, they made the following comments: "Since Labor Day, client flows have been stronger and fixed income performance has markedly improved to more normal levels. Momentum in Investment Banking appears to be building for our fourth-quarter and into 2014, as our backlog is strong and improving." This was a bright point as rate volatility is generally bad for deal execution and they had a good quarter. Guidance seems to be good as well. The most interest point: compensation expense. This quarter ~293m, last quarter ~373m, and last year, ~440m. I am not sure if there is any reason for this huge drop in expense from last year, but I hope they are getting on the right track of lowering their comp expense. Link to comment Share on other sites More sharing options...
fareastwarriors Posted September 19, 2013 Share Posted September 19, 2013 http://www.breakingviews.com/jefferies-shows-fixed-income-isnt-for-everyone/21108284.article Jefferies shows fixed income isn't for everyone Link to comment Share on other sites More sharing options...
Gopinath Posted September 27, 2013 Share Posted September 27, 2013 It looks like Leucadia acquired 13.2% of Harbinger Group. http://secfilings.com/searchresultswide.aspx?link=2&filingid=9528037 Link to comment Share on other sites More sharing options...
rogermunibond Posted September 27, 2013 Share Posted September 27, 2013 Phil Falcone vehicle. Holds Spectrum Brands stake and a life insurer Fidelity and Guaranty. Harbinger Group Inc. operates as a diversified holding company. The company, through its subsidiaries, offers various branded consumer products, such as consumer batteries, including alkaline and zinc carbon batteries, rechargeable batteries and chargers, hearing aid batteries, and other specialty batteries, as well as portable lighting products; small appliances comprising small kitchen appliances and home product appliances; pet supplies consisting of aquatic equipment and supplies, dog and cat treats, small animal foods, clean up and training aids, health and grooming products, and bedding products; home and garden control products, including household insect controls, insect repellents, and herbicides; electric shaving and grooming devices; and electric and wet personal care, and styling devices. Its brand portfolio includes Rayovac, VARTA, Beltone, Miracle Ear, Starkey, George Foreman, Black & Decker, Russell Hobbs, Farberware, Juiceman, Breadman, Toastmaster, Tetra, Marineland, Whisper, Jungle, Instant Ocean, FURminator, 8-in-1, Dingo, Firstrax, Nature’s Miracle, Wild Harvest, Littermaid, Hot Shot, Cutter, Repel, Black Flag, TAT, Spectracide, Real-Kill, Garden Safe, Remington, Carmen, and Andrew Collinge. The company sells its products through retailers, wholesalers and distributors, hearing aid professionals, industrial distributors, and original equipment manufacturers to home improvement centers, mass merchandisers, hardware stores, home and garden distributors, food and drug retailers, and pet stores. It also provides life insurance and annuity products through independent agents, managing general agents, and specialty brokerage firms; and secured asset-based loans to entities in various industries with additional financing throughout the capital structure. The company was formerly known as Zapata Corporation and changed its name to Harbinger Group Inc. in December 2009. Harbinger Group Inc. was founded in 1954 and is headquartered in New York, New York. Link to comment Share on other sites More sharing options...
rogermunibond Posted September 27, 2013 Share Posted September 27, 2013 http://www.bloomberg.com/news/2013-08-30/falcone-insurer-said-to-seek-1-billion-valuation-in-ipo.html F&G listing 10% in an IPO. Link to comment Share on other sites More sharing options...
VersaillesinNY Posted September 28, 2013 Share Posted September 28, 2013 "Three funds run by Harbinger Capital Partners LLC sold a combined 18.6 million shares of Harbinger Group, a publicly traded holding company run by Falcone, for $8.50 a share". http://www.bloomberg.com/news/2013-09-27/falcone-s-funds-sell-harbinger-group-shares-to-leucadia.html?cmpid=yhoo Link to comment Share on other sites More sharing options...
Sportgamma Posted October 3, 2013 Share Posted October 3, 2013 Investor presentation - Oktober 2013 http://www.leucadia.com/luk_presentation_10-02-13.pdf Link to comment Share on other sites More sharing options...
jay21 Posted October 3, 2013 Share Posted October 3, 2013 Investor presentation - Oktober 2013 http://www.leucadia.com/luk_presentation_10-02-13.pdf This was good. Thanks. I'm looking over the presentation and a lot of what they are doing seems to be smart, but I am having trouble coming up with what I think each business is worth. Here's the businesses they always high light and their BV: Jefferies - 5.2b National Beef - 877m Berkadia - 188m Garcadia - 122m Berkadia and Garcadia are ~1% to 2% of BV positions and are hardly going to move the needle. So this is still comes down to a bet on Jef, National Beef, and what the jockeys do with the cash. I'll probably add more, just want to think this one over so more. Link to comment Share on other sites More sharing options...
HJ Posted October 3, 2013 Share Posted October 3, 2013 Investor presentation - Oktober 2013 http://www.leucadia.com/luk_presentation_10-02-13.pdf This was good. Thanks. I'm looking over the presentation and a lot of what they are doing seems to be smart, but I am having trouble coming up with what I think each business is worth. Here's the businesses they always high light and their BV: Jefferies - 5.2b National Beef - 877m Berkadia - 188m Garcadia - 122m Berkadia and Garcadia are ~1% to 2% of BV positions and are hardly going to move the needle. So this is still comes down to a bet on Jef, National Beef, and what the jockeys do with the cash. I'll probably add more, just want to think this one over so more. It seems that the BV on Berkadia, Garcadia and National Beef all understates the value of those businesses. As for Jefferies, we can all have our own opinions on the proper valuation. Link to comment Share on other sites More sharing options...
thepupil Posted October 3, 2013 Share Posted October 3, 2013 I 100% agree. Something that gives you $191MM of distributions in 4 or so years is not worth $188MM. Berkadia's growth is very likely to slow however, given Walker Dunlop's recent announcement http://finance.yahoo.com/news/walker-dunlop-plunges-loan-outlook-151838964.html Leucadia’s original investment was $217 million. As of July 15, 2013, cumulative cash distributions to Leucadia have been $191 million, with substantial value going forward Link to comment Share on other sites More sharing options...
Grenville Posted October 3, 2013 Share Posted October 3, 2013 Any thoughts on why they are filing an S3 and the presentation. Are they raising capital or something else? Link to comment Share on other sites More sharing options...
rogermunibond Posted October 3, 2013 Share Posted October 3, 2013 http://www.sec.gov/Archives/edgar/data/96223/000093041313004834/c75184_424b5.htm Relates to Jefferies convertible senior debentures Link to comment Share on other sites More sharing options...
jay21 Posted October 5, 2013 Share Posted October 5, 2013 Investor presentation - Oktober 2013 http://www.leucadia.com/luk_presentation_10-02-13.pdf This was good. Thanks. I'm looking over the presentation and a lot of what they are doing seems to be smart, but I am having trouble coming up with what I think each business is worth. Here's the businesses they always high light and their BV: Jefferies - 5.2b National Beef - 877m Berkadia - 188m Garcadia - 122m Berkadia and Garcadia are ~1% to 2% of BV positions and are hardly going to move the needle. So this is still comes down to a bet on Jef, National Beef, and what the jockeys do with the cash. I'll probably add more, just want to think this one over so more. It seems that the BV on Berkadia, Garcadia and National Beef all understates the value of those businesses. As for Jefferies, we can all have our own opinions on the proper valuation. I agree too. But, my point for Berkadia and Garcadia is that they need to be many multiples of book to have an a material impact on the valuation for me. Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 9, 2013 Share Posted October 9, 2013 http://www.bloomberg.com/news/2013-10-09/jefferies-posts-18-days-of-trading-losses-most-since-11.html Jefferies Posts 18 Days of Trading Losses, Most Since ’11 Link to comment Share on other sites More sharing options...
Grenville Posted October 16, 2013 Share Posted October 16, 2013 Leucadia raising 750mln in Senior Notes at 5.5% due 2023 http://www.sec.gov/Archives/edgar/data/96223/000093041313004943/c75331_fwp.htm Press release: http://www.marketwatch.com/story/leucadia-national-corporation-announces-pricing-of-senior-notes-offering-2013-10-15?reflink=MW_news_stmp Leucadia National Corporation Announces Pricing of Senior Notes Offering NEW YORK, Oct 15, 2013 (BUSINESS WIRE) -- Leucadia National Corporation LUK +0.10% today announced the pricing of its public offering of $750,000,000 principal amount of its 5.50% Senior Notes due 2023 (the "senior notes") at an issue price of 98.641%. The offering is expected to close on October 18, 2013. The Company intends to use the net proceeds from the proposed offering for the repayment, repurchase and/or redemption of its 8(1)/8% senior notes maturing in 2015 and general corporate purposes. The offering is being made pursuant to an effective registration statement filed by Leucadia National Corporation with the Securities and Exchange Commission on October 2, 2013. Jefferies LLC is acting as sole bookrunner for the proposed offering. Interested parties may obtain a written prospectus relating to the senior notes offering from the following: Debt Capital Markets, Jefferies LLC, 520 Madison Avenue, 8th Floor, New York, NY 10022, (212) 284-3417. Link to comment Share on other sites More sharing options...
Myth465 Posted October 16, 2013 Share Posted October 16, 2013 Very nice rate reduction. Link to comment Share on other sites More sharing options...
twacowfca Posted October 16, 2013 Share Posted October 16, 2013 Very nice rate reduction. Interesting. Leucadia, our fourth largest investee is now paying about the same rate as Lancashire on their recent ten year notes. I think the credit analysts are starting to appreciate the increased financial strength of the Leucadia - Jefferies combination. :) Link to comment Share on other sites More sharing options...
Myth465 Posted October 16, 2013 Share Posted October 16, 2013 I hate paying taxes, and plan to hold LUK in a taxable account and increase it overtime. LRE is in a Roth IRA because of those pesky special dividends. I like Jefferies Management but still dont quite understand investment banks. I think Owning LUK could be a good way to get comfortable with them. TWA what else do you hold? Are you still in Freddie / Fannie? Link to comment Share on other sites More sharing options...
zippy1 Posted November 7, 2013 Share Posted November 7, 2013 Luk Q3 results out http://finance.yahoo.com/news/leucadia-national-corporation-announces-nine-200000946.html Net income attributable to Leucadia National Corporation common shareholders for the nine month periods ended September 30, 2013 and 2012 was $360,686,000 ($1.06 per diluted common share) and $400,300,000 ($1.62 per diluted common share), respectively. These results reflect the inclusion of the operations of Jefferies Group LLC and its subsidiaries since its acquisition on March 1, 2013. Link to comment Share on other sites More sharing options...
Christopher1 Posted November 7, 2013 Share Posted November 7, 2013 No more funds for Sangart: "In October 2013, the Company concluded that it would no longer continue to fund Sangart’s research and development activities, and commenced an orderly shut-down of its operations. The Company estimates future expenses related to Sangart’s final operating activities and shut-down costs are approximately $15.0 million, which are likely to be recorded during the fourth quarter of 2013." Link to comment Share on other sites More sharing options...
Grenville Posted November 7, 2013 Share Posted November 7, 2013 No more funds for Sangart: "In October 2013, the Company concluded that it would no longer continue to fund Sangart’s research and development activities, and commenced an orderly shut-down of its operations. The Company estimates future expenses related to Sangart’s final operating activities and shut-down costs are approximately $15.0 million, which are likely to be recorded during the fourth quarter of 2013." Thanks for the nugget on Sangart. Ian Cumming sold a good chunk of stock and dropped below reporting requirements. I doubt we'll see his holdings in the proxy. He sold 4.2mln shares of 22mln at $28 on 11/1/13. I would have preferred he stay a holder of LUK. I wonder who picked up his shares. http://www.sec.gov/Archives/edgar/data/96223/000093041313005196/c75504_sc13da.htm Link to comment Share on other sites More sharing options...
james22 Posted November 16, 2013 Share Posted November 16, 2013 Leucadia National Corp. (LUK) is a diversified holding company that has an excellent track record of creating value for shareholders over the last 30 years. Currently the Company is in a period of leadership transition and is under-followed by Wall Street analysts. Valuation has compressed significantly in recent years, which has arguably left Leucadia National undervalued by 20-30%. http://seekingalpha.com/article/1838582-leucadia-national-sotp-points-to-20-30-upside Link to comment Share on other sites More sharing options...
jay21 Posted December 10, 2013 Share Posted December 10, 2013 http://www.bloomberg.com/news/2013-12-06/jefferies-increases-kcg-stake-by-49-to-16-5-million-shares.html?cmpid=yhoo Buying more KCG Link to comment Share on other sites More sharing options...
skanjete Posted December 16, 2013 Share Posted December 16, 2013 Biloxi is being sold, $25m above book : http://biz.yahoo.com/e/131216/luk8-k.html Link to comment Share on other sites More sharing options...
jay21 Posted December 17, 2013 Share Posted December 17, 2013 http://www.bloomberg.com/news/2013-12-06/jefferies-increases-kcg-stake-by-49-to-16-5-million-shares.html?cmpid=yhoo Buying more KCG Highlights for the three months ended November 30, 2013: Net revenues of $936 million Net earnings of $120 million Investment banking net revenues of $417 million Equities net revenues of $294 million Fixed Income net revenues of $212 million Richard B. Handler, Chairman and Chief Executive Officer of Jefferies, commented: “Our results reflect exceptional quarterly performance in our investment banking efforts, a solid performance from our core global equity businesses, and a very significant improvement in our fixed income results versus the third-quarter. Our investment banking performance benefited from a strong equities and leveraged finance new issues market and demonstrates our significant market presence and value added capabilities. Our equities results include the impact of $110 million in pre-tax unrealized mark-to-market gains on our holdings of shares of Knight Capital and Harbinger Group. Fixed income customer flows improved significantly from last quarter. While our results for the full fiscal year 2013 were below those of 2012, primarily due to the difficult mid-year fixed income environment, we believe the strong finish to the year, combined with the continued positive momentum in all of our core businesses, positions us well for 2014. We thank our clients, our employees, our bondholders and all our business partners for their continued support.” KCG continues to look like a smart investment. Also, appears that JEF was behind Harbinger as well. http://www.sec.gov/Archives/edgar/data/96223/000115752313005786/a50770134ex99.htm Link to comment Share on other sites More sharing options...
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