What else to you own that is in the same position as ASFI? It will be interesting to hear what management and investors have to say on the conference call.
It's a spinoff of rights to buy Sears Hometown shares. You need approximately 4.6 rights and $15 dollars for every new Sears Hometown share you want to buy (through a corporate action form).
Check out the SEC filings for Motors Liquidation Co. Specifically:
You should negotiate because you can probably get a removal of the covenant for ~50bps (3mm USD) and it is casting a dark cloud over the stock.
If your argument is that the potential bond put is just a cosmetic problem and the short-term share price doesn't matter then they should cut the dividend by 60% and buyback the stock so we don't get reamed by double taxation.
Yeah, I'm listening to it. Their decision not to seek an amendment on the bonds or prepare for the contingency of them being put is very frustrating.
I have been a buyer at somewhat above these levels. I just wish I had more faith in management. I really feel like they are running this company for their benefit and not investors.
Where is this manifest? I want to try and get a better idea of Astro's earnings/revenue going forward, but the company doesn't seem to give a lot of indications.
Indiscriminate selling in large (for ITIC) volume. I wouldn't mind acquiring some more around 25, but the sell off on large volume is a little scary.
BofA has not guaranteed the debt. Merrill is a subsidiary of BofA with implied support, but that is all. BofA CDS trades at 265 Merrill Lynch at 403. If BofA had guaranteed ML's debt they would be trading at parity.
Bought a little at prices a little higher than the current prices. If the rest of my money wasn't tied up in things that have gotten slaughtered I would buy more. Hopefully these huge fraud losses aren't going to keep coming down the pipe.
By doing this deal FNF gets a much greater % of LFG's customers than they would if they just watched LFG fail. Also, owning LFG allows FNF to close the offices, ether their own or LFG's, that would be most beneficial to them.
I think this deal is really positive for FNF (even though LFG is kind of a horrible company, which gives me some concern). FNF is both increasing its economies of scale and taking out capacity in the industry on their terms, both of which are really good. In the long-term FNF can be scaled to the size of the real estate industry, so unless the industry keeps shrinking forever, at some point FNF should be appropriately sized and start making money again, and if real estate transactions ever make a come back FNF should print money and run into regulatory problems all over (oh how I long to see that day).
FAF is probably up on the belief that the FNF/LFG merger will take capacity out of the market (i.e. a lot of overlapping offices will be closed). Less capacity means better utilization rates on existing assets and hopefully more profit. Less competition in general is also good.
I listened to the Fidelity National conference call today they were pretty excited about the refinancing wave. That stock has taken off like a rocket.
Unfortunately, ITIC has less revenue and more cash relative to its market cap so it is not as leveraged to the strength of the title insurance business. Investors Title should still have a good month this month though, if most of the new refinancings close.
I was surprised by how well they did. After LFG's report I expected their numbers to be awful. I wonder how they are picking up agency business in a declining market.
How hard can it be to run a business that competes in a virtual oligopoly? The top 5 firms control 90% of the title business. All ITIC has to do is let the big firms set profitable prices and maintain good relationships with North Carolina lawyers. If they had locked in some long-term debt at the recent low interest rates and didn't pay themselves so extravagantly the stock price would definitely be higher.
Thanks for pointing that out. I didn't notice the buy backs (though they should be significantly larger). Your post made me do some research into executive compensation.
Executive compensation last year as a % of net income is horrible. 2.2 million in top executive comp 13 million in net income. 17% of net income is executive compensation. Compare this to Stewart Title with 2 million in executive compensation (for the top 3 execs) and 43 million in net income for a percentage of 4.6%. Their compensation appears to be egregious. Too bad the executives are also controlling shareholders.
Name and Principal Position
J. Allen Fine
Chief Executive Officer &
Chairman of the Board
James A. Fine, Jr.
President, Chief Financial Officer & Treasurer
W. Morris Fine
Executive Vice President & Secretary