thepupil Posted March 26, 2020 Share Posted March 26, 2020 pretty great pre-corona quarter, validating to long term thesis. as state above no longer own, but glad to see them print a nice ROTE on the I-bank, of course this is partly due to them robbing peter (merchant bank) to pay paul (I-bank) by putting Berkadia in there. http://ir.jefferies.com/Cache/IRCache/f2a9a4e2-039f-db43-ff4f-70749eb82b9a.PDF?O=PDF&T=&Y=&D=&FID=f2a9a4e2-039f-db43-ff4f-70749eb82b9a&iid=103464 Link to comment Share on other sites More sharing options...
mcliu Posted March 26, 2020 Share Posted March 26, 2020 That repurchase timing.. ??? O&G and real estate's gonna have a rough Q2. Otherwise, balance sheet is in decent shape. Lots of liquidity and cash. $25 TBV. ~0.6x TBV before adjusting for potential write-downs in O&G, real estate. Link to comment Share on other sites More sharing options...
petec Posted March 27, 2020 Share Posted March 27, 2020 That repurchase timing.. ??? O&G and real estate's gonna have a rough Q2. Otherwise, balance sheet is in decent shape. Lots of liquidity and cash. $25 TBV. ~0.6x TBV before adjusting for potential write-downs in O&G, real estate. I'm not sure you can call them out on timing given the unpredictability of what's happened! I'm more interested in the repurchase value and I'm glad to see them buying back below TBV and accelerating the buyback as the stock dropped. Good thing is they have dry powder to do more. I sold at $21 and bought back in at $14 which feels quite nice. Small positions though - I use JEF as a trading stock, one to buy when markets panic and sell then they're riding high. Link to comment Share on other sites More sharing options...
petec Posted March 27, 2020 Share Posted March 27, 2020 PS won't be surprised if Linkem is signing customer like crazy in locked-down Italy. You need good internet to make use of that free premium offer from PornHub ;) Link to comment Share on other sites More sharing options...
thepupil Posted March 29, 2020 Share Posted March 29, 2020 Jefferies Group CFO Dies From Coronavirus Complications Sunday, March 29, 2020 10:56 AM By Giulia Camillo (Bloomberg) --Jefferies Group LLC said Chief Financial Officer Peg Broadbent has died from coronavirus complications. The company named Teri Gendron, CFO of Jefferies Financial Group, as the interim CFO and Chief Accounting Officer, according to a statement on Sunday. Link to comment Share on other sites More sharing options...
petec Posted March 29, 2020 Share Posted March 29, 2020 Jefferies Group CFO Dies From Coronavirus Complications Sunday, March 29, 2020 10:56 AM By Giulia Camillo (Bloomberg) --Jefferies Group LLC said Chief Financial Officer Peg Broadbent has died from coronavirus complications. The company named Teri Gendron, CFO of Jefferies Financial Group, as the interim CFO and Chief Accounting Officer, according to a statement on Sunday. Holy cow. Makes it real. Link to comment Share on other sites More sharing options...
sleepydragon Posted March 29, 2020 Share Posted March 29, 2020 Jefferies Group CFO Dies From Coronavirus Complications Sunday, March 29, 2020 10:56 AM By Giulia Camillo (Bloomberg) --Jefferies Group LLC said Chief Financial Officer Peg Broadbent has died from coronavirus complications. The company named Teri Gendron, CFO of Jefferies Financial Group, as the interim CFO and Chief Accounting Officer, according to a statement on Sunday. Holy cow. Makes it real. This is gonna scare everyone working on Wall Street Link to comment Share on other sites More sharing options...
Spekulatius Posted March 29, 2020 Share Posted March 29, 2020 Jefferies Group CFO Dies From Coronavirus Complications Sunday, March 29, 2020 10:56 AM By Giulia Camillo (Bloomberg) --Jefferies Group LLC said Chief Financial Officer Peg Broadbent has died from coronavirus complications. The company named Teri Gendron, CFO of Jefferies Financial Group, as the interim CFO and Chief Accounting Officer, according to a statement on Sunday. Holy cow. Makes it real. This is gonna scare everyone working on Wall Street He was 56 and in good health. Link to comment Share on other sites More sharing options...
petec Posted March 29, 2020 Share Posted March 29, 2020 He was 56 and in good health. Do we know the latter? Link to comment Share on other sites More sharing options...
decko Posted May 6, 2020 Share Posted May 6, 2020 Their quarter ended Feb29th had record Revs of 1.386 bill, and an all time high 343 mill advisory fees, obviously a different story before this mess started. Is this company finally, truly, a great investment at these price? What are their challenges going forward? Link to comment Share on other sites More sharing options...
thepupil Posted June 30, 2020 Share Posted June 30, 2020 Jefferies has killed it for 2 quarters in a row Link to comment Share on other sites More sharing options...
ukvalueinvestment Posted June 30, 2020 Share Posted June 30, 2020 From a financial perspective: Great results. Surely this will rerate (and they are buying back stocks anyway). From a human perspective, they raised $9,25ln in memory of their CFO who died of COVIC-19 and I liked this: "Finally, we implore everyone to wear a mask when out in public. When you wear a mask, you do it out of respect for your fellow humans and we believe masks (and testing) will be critical to allowing all of us to protect those most at risk as our medical experts work tirelessly to develop the needed therapeutics, vaccines and methods of delivering them in mass quantities. Working together will allow us all to best navigate this incredibly difficult period and bridge our path to a more normal way of life that we will never take for granted." Link to comment Share on other sites More sharing options...
A_Hamilton Posted June 30, 2020 Share Posted June 30, 2020 Jefferies has killed it for 2 quarters in a row Yeah, but we need to see how they are getting to their marks on Jefferies Finance (JFIN JV with Mass Mutual that is levered with CLO's) and then how they are coming up with their fair value mark on Vitesse. They still have Vitesse marked at ~$550 million in equity value. Sure it has hedged oil at $65 this year, but WTI at $39 beyond that does not do wonders for Vitesse. It can't be the only name in the Bakken to not have lost value. Link to comment Share on other sites More sharing options...
thepupil Posted July 1, 2020 Share Posted July 1, 2020 Jefferies has killed it for 2 quarters in a row Yeah, but we need to see how they are getting to their marks on Jefferies Finance (JFIN JV with Mass Mutual that is levered with CLO's) and then how they are coming up with their fair value mark on Vitesse. They still have Vitesse marked at ~$550 million in equity value. Sure it has hedged oil at $65 this year, but WTI at $39 beyond that does not do wonders for Vitesse. It can't be the only name in the Bakken to not have lost value. I agree with you and sold in early March for this reasons (see a couple posts up). That decision has been very additive to only slightly so based on subsequent drawdown and recovery of things purchased with JEF proceeds. Nevertheless, I am positively surprised by the operating results (though I agree more write downs are likely). I bought a starter position. Every time I’ve bought JEF in the mid teens it’s worked out, but would like to see more write downs before buying a real position. Link to comment Share on other sites More sharing options...
benhacker Posted September 24, 2020 Share Posted September 24, 2020 firing on all cylinders here it appears. Market price has continued to confuse me, but oh well. Link to comment Share on other sites More sharing options...
scorpioncapital Posted September 24, 2020 Share Posted September 24, 2020 Is it because the annual earnings are not so easy to predict? can be higher or lower based on variables not as consistent as an operating company? Link to comment Share on other sites More sharing options...
ratiman Posted September 24, 2020 Share Posted September 24, 2020 Principal transactions have almost quadrupled since last year. Is that because other banks have pulled back? That's been the prediction since the GFC but maybe it's actually happening. Link to comment Share on other sites More sharing options...
benhacker Posted September 24, 2020 Share Posted September 24, 2020 Principal transactions have almost quadrupled since last year. Is that because other banks have pulled back? That's been the prediction since the GFC but maybe it's actually happening. It definitely was clear in March - May, they did some transactions when things were closed that were usurious in nature. There is more constraint to big banks, but hard to say what is persistent here. It does feel like it may be more permanent, but we will have to see... not sure I think you can say it's a long term trend yet. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted September 24, 2020 Share Posted September 24, 2020 A very impressive quarter. Investment bank is performing very well, Idaho Timber is doing better than ever, and it's a great time to own a minority interest in an operational gold mine. * Edited to remove a bunch of nonsense because I just realized I wasn't reading the full earnings release. Link to comment Share on other sites More sharing options...
ratiman Posted September 24, 2020 Share Posted September 24, 2020 There should be less competition. This slide from JMP shows all the firms that have disappeared since GFC: Link to comment Share on other sites More sharing options...
5xEBITDA Posted September 24, 2020 Share Posted September 24, 2020 It is only less competition when viewed via number of firms...but that slide is primarily acquisitions, for example Cowen bought Tri-Artisan Partners and CRT Capital, so it is really a reallocation of capital. Underwriting league tables are the best way to look at market share, and on the merchant banking side the competition is really independent hedge fund & private equity firms because the proprietary capital groups of large banks all spun out into their own firms due to regulations. Link to comment Share on other sites More sharing options...
ratiman Posted September 24, 2020 Share Posted September 24, 2020 It is only less competition when viewed via number of firms...but that slide is primarily acquisitions, for example Cowen bought Tri-Artisan Partners and CRT Capital, so it is really a reallocation of capital. Underwriting league tables are the best way to look at market share, and on the merchant banking side the competition is really independent hedge fund & private equity firms because the proprietary capital groups of large banks all spun out into their own firms due to regulations. You seem to know a lot about this, do you have any view on which firm is most likely to get acquired next? JMP? GHL? Link to comment Share on other sites More sharing options...
A_Hamilton Posted September 24, 2020 Share Posted September 24, 2020 A nit here on what looks like a fantastic Q. They had a $27,013 loss in other investment banking which in past quarters is the line item where they've taken Jefferies' Finance writedowns. Somewhat annoying in a Q where spreads narrowed for leveraged loans that they still took a loss/suggesting they didn't realize everything upfront/could be some/ a lot of drag to come from here still. A lot of the leveraged loan space looks like slow melting ice cubes at this point. Obviously depends on the deal, but nonetheless wish they'd more transparency here as this/Vitesse/and then potential value of Linkem are the three biggest questions to me on this thing being a rocket ship or continuation of the dud it has been for 20 years. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted September 24, 2020 Share Posted September 24, 2020 A nit here on what looks like a fantastic Q. They had a $27,013 loss in other investment banking which in past quarters is the line item where they've taken Jefferies' Finance writedowns. Somewhat annoying in a Q where spreads narrowed for leveraged loans that they still took a loss/suggesting they didn't realize everything upfront/could be some/ a lot of drag to come from here still. A lot of the leveraged loan space looks like slow melting ice cubes at this point. Obviously depends on the deal, but nonetheless wish they'd more transparency here as this/Vitesse/and then potential value of Linkem are the three biggest questions to me on this thing being a rocket ship or continuation of the dud it has been for 20 years. I actually think the biggest problem here is the burden of $100 million plus of corporate overhead each year. IMO what needs to happen is the merchant banking segment (sales, spin offs, merge more units into the investment bank) needs to be eliminated and the corporate segment needs to be dropped down into the investment bank and costs rationalized. Link to comment Share on other sites More sharing options...
5xEBITDA Posted September 24, 2020 Share Posted September 24, 2020 It is only less competition when viewed via number of firms...but that slide is primarily acquisitions, for example Cowen bought Tri-Artisan Partners and CRT Capital, so it is really a reallocation of capital. Underwriting league tables are the best way to look at market share, and on the merchant banking side the competition is really independent hedge fund & private equity firms because the proprietary capital groups of large banks all spun out into their own firms due to regulations. You seem to know a lot about this, do you have any view on which firm is most likely to get acquired next? JMP? GHL? Wish I could be more helpful, but Im not really a financials guy Link to comment Share on other sites More sharing options...
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