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Leucadia National Corporation Message Board

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  • wunderkind750 wunderkind750 May 20, 2012 11:11 AM Flag

    who's selling (below BV)?

    I calculate BV/S in a very similar fasion as mastermind, but I would warn that BV/S does not equal value. Since 1979 LUK has grown its BV/S by a CAGR of 19.1% per year. This far surpasses its cost of equity. So, if we are using history as a guide then LUK should trade at a multiple to BV/S. But the real question is in the future will LUK be able to continue to compound its BV/S by more than its cost of equity capitl. Personally, I believe that they will and think that the current stock price is a great buying opportunity.

    My biggest concern with LUK is that their Chairman, Ian Cumming, who has been so instrumental in the companies success will be stepping down in 3 years. This is a major loss and probably explains much of the drop in price. With this announcement it becomes even more important to monitor and analyze the next generation of leaders.

22.72+0.61(+2.76%)Dec 19 4:05 PMEST

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