Does appear to be a bit bizarre. Does that guy have any input on how and where BRK invests the General Re float?
"...the Kellogg Group wants control of MFC without paying a premium for control."
Management's actions/response are a complete insult to shareholders. One might compare it to "Alice in Wonderland" and wonder at what point the "Mad Hatter" will make an appearance.
MIL press release says:
- on 10/1/13 it was revealed that Kellogg owns 33%
- supposedly per Canadian law once 20% position had been achieved Kellogg required to make buyout offer to all shareholders
Upon learning of the Kellogg 33% ownership position why didn't management immediately demand that a buyout offer be made.....to "protect" all shareholders?
With the sizable cash position seems as if a buyout would be fairly easy to do. At this point would welcome someone offering 85% of BV and then we can move on. Of course if MJS wanted to take the company private he would probably only offer $8.50.
litigation. Let's just let the shareholders vote and then go forward from there. At this point if there is a vote my guess is that they will be telling MJS not to let the door hit him on the way out.
Those who listen to the CC's will recognize the name as he always has a number of good questions....has been on every call that I've listened to. He is one of the eight IAT director nominees.
Sentiment: Strong Buy
Dr. Shuming Zhao (since 2004)
Indrajit Chatterjee (since 2005)
Robert Ian Rigg (since 2010)
Ravin Prakash (since 2011)
May not make a difference but when the time comes I will vote YES for MJS but a definite NO for the other four who I regard to be nothing more than 'rubber stamps'.
Kellogg owns 20+ million shares. My guess is that a mutual or private equity fund sold their position and the market makers hammered them on the way out.
One might have assumed that a publicly traded company would already have such guidelines in place. Makes one wonder if there is some type of 'angle' to this but who knows.
I'd actually like to see Kellogg 'nominated' to be a director.
From the 3Q earnings press release:
We maintain various kinds of credit lines and facilities with banks and insurers. Most of these facilities are short-term and are used for day-to-day business and structured financing activities in commodities. The amounts drawn under such facilities fluctuate with the type and level of transactions being undertaken.
Am completely baffled as to how Tracy Britt Cool was promoted to the position she is now in. At the very least she should be removed from any decision making involving Benjamin Moore.
In any case BM has little or no chance to improve sales when they are locking themselves in to a policy of not having their product in the stores that have the most foot traffic, sales, etc.
The LT debt to equity ratio is 0.20
On the CC the at least two analyst/shareholders made suggestions that involved increasing the debt load with one reason being that interest rates are so low.
Think it should be mentioned that MJS follows a philosophy of paying as little taxes as possible and think that they definitely do everything they can (using every trick in the book) to report a lower income number. I'm not a CPA but doesn't the oil & gas industry offers a lot of tax write-offs, etc.?
On the CC's whenever someone calls in with 'suggestions' MJS is always very polite and always gives the same answer (we'll think about it, discuss it, etc.) and none of those suggestions/ideas, etc. have ever been implemented. I'm puzzled by his insistence about keeping a decent amount of shares ('float') available....not following what his thinking is. Not going to happen anytime soon but my take is that a company policy of buying back shares if they are available for purchase at some designated % of book value would immediately 'goose' the stock price.
I've been a long time holder of BRK and the announcement of buying back at 1.1 X book was a nice boost and they then changed it to 1.2 X book which further helped the stock price. MIL could announce a buy back at 0.9 X book and we would see a huge % increase in the stock price. Of course buying back shares would increase the % of the company that Kellogg owns so am not counting on it.
If XOM is the position that was not previously disclosed then it will have been a sizable purchase and is definitely WEB.
Sentiment: Strong Buy