Lousy results for Remy as well and they don't even mention how the Ceredian 'investment' continues to bleed red ink.
why is it that one can buy a share of ESPH for 27 cents?? four shares will buy you an item off of the McDonald's $1 menu and also cover the tax!!
Another complete mystery to me. Again it is something that Bill could put his own money into but to invest shareholder $ in what is nothing more than a crapshoot is hard to understand. These guys have had a great record of doing acquisitions/investments in companies that have been related to insurance & real estate (the businesses they know and understand) but have not done so well when venturing out of the comfort zone. D-i-W-o-r-s-i-f-i-c-a-t-i-o-n in progress.
go to the O'Charley's website and click on 'commercials'. perhaps Brock Roland will develop a 'cult' following.....
Brutally competitive industry. One should think of the restaurants as a sinkhole where $ simply disappears. If you were to buy several struggling/mediocre restaurant chains and put them under one umbrella what type of business results are you going to have? One should note that this is an industry where the best run/managed companies (i.e. McDonalds) are struggling to increase 'same store' sales. Another issue that has not been raised is demographics......what is the age of the typical customer that FNF's restaurant chains serve? My guess is that it is not a number that going forward will give much hope for growth.
Still remains a mystery as to why Bill just didn't start a private equity/venture capital firm to do these "other" investments. Unless somehow related to the core business why have FNF involved in them? Also in the event that the unrelated investments do well the stock will not really benefit (i.e. multiple will not be higher) and if they do poorly the stock will be negatively impacted. Lose-lose scenario.
Bill Foley could easily do all these restaurant investments on his own.....not sure why over the years he's always dragged FNF into it as well. Can still remember the burrito ownership years ago.
The price action seems to be indicative that MBND will not
pay $3.20 per share. Best case scenario might be a revised offer of $2.50.
Worst case scenario is where MBND buys additional assets (i.e. centers) at
a lower price than it would cost to build them today.
The analyst estimates were way off. The larger than expected loss was a bit of a surprise. Will be interesting to see how FNF and FAF do....certainly don't have high expectations for either one though.
The industry especially FNF has done wonders with cost cutting, reductions, etc. Relative to the challlenging market conditions the Q4 numbers were extremely impressive. My take is that those results have propped up the stocks of FAF and FNF. Think that the downside risk of STC somewhat minimal due to the possibility of their being an acquisition candidate. I suspect that we will see the low $9's before we see $12 though.
Keep in mind that the best time to buy is when business prospects and the housing market are at a point of maximum pessimism. Not there yet though.
If one thinks about it there is no reason for any title company to willingly do that. What is the upside gain relative to the downside risk? Your scenario seems a bit far fetched. The focus seems to be on the banks/lenders completing the foreclosure process using altered/false documents, etc.
Bottom line for the title companies is that the sale of foreclosed properties has slowed and the result will be less business. Lower housing prices result in less revenue as well.
Disclaimer: No position. Waiting for a lower entry point in conjunction with the housing market being at a point of maximum pessimism.
STC earnings on 2/17. FNF posted a great Q4 but it took some real cost cutting to do so.
Incredibly strong balance sheet here but they need to increase the margins.
Disclosure: Currently no position in any of the title companies.
Management did some extensive cost cutting and supposedly more coming....should go right to the bottom line. I think that there is some concern in regards to liability/exposure to the foreclosure mess. Management claims that they have none still aren't cutting it....have to believe that many attorneys will have a lot of interest in talking to title company employees. Lately the topic has been out of the headlines but only a matter of time before the story has legs again.