Leucadia National fka LUK

[Investorman]

And the bulk of that was income tax expense.

[MrBankRoll]

Only lost 2.5 billion? That's not all that bad, considering...

[Investorman]

Leucadia National Corporation Announces 2008 Results
Friday February 27, 5:34 pm ET



NEW YORK--(BUSINESS WIRE)--Leucadia National Corporation (NYSE: LUK - News) today announced its operating results for the year ended December 31, 2008. Net loss was $(2,535,425,000) or $(11.00) per diluted common share for the year ended December 31, 2008 compared to net income of $484,294,000 or $2.10 per diluted common share for the year ended December 31, 2007. A major portion of the 2008 loss results from a charge to income tax expense of $1,672,100,000 and an increase to the deferred tax valuation allowance to reserve for substantially all of the Company’s net deferred tax asset (which includes its net operating loss carryforwards). During 2007, the Company recorded an adjustment that reduced the deferred tax valuation allowance and credited income tax expense by $542,700,000. Net loss for 2008 also included income of $43,886,000 or $.19 per diluted common share and net income for 2007 included income of $3,486,000 or $.01 per diluted common share related to discontinued operations, including gain and loss on disposals.

The Company also announced today that its Board of Directors has authorized the Company to make purchases, from time to time, of the Company’s outstanding indebtedness at such prices as the Company’s Chairman and its President may deem appropriate.

[Investorman]

Naw, I had to go back for my mother's 87th birthday. 5 days with a bunch of women aged between 86 and 100 isn't my idea of a vacation.

[MrBankRoll]

Took off without me, eh? lol!

[Investorman]

Berkowitz Dumps Berkshire Stake; Bets Big Elsewhere
Tuesday February 17, 9:06 am ET
By the tickerspy.com Staff

Legendary fund manager Bruce Berkowitz was buying during a grizzly fourth quarter as value opportunities abounded. However, Berkowitz also dumped all but a fraction of his stake in Warren Buffett's Berkshire Hathaway (NYSE: BRK-A - News, BRK-B - News).

Regarding the reduction in the Berkshire stake, which began early in 2008, Berkowitz had told his Fairholme Fund (Nasdaq: FAIRX - News) shareholders, "We made this move because we cannot see how the company can replicate its past stellar performance given its current size and the age of its key personnel."

Meanwhile, Berkowitz, known for his prowess as a value-focused investor, was redeploying his cash elsewhere. "As the crowd sold, we bought common stocks of essential health care, defense, and infrastructure-related companies," Berkowitz wrote in his annual letter to Fairholme Fund (Nasdaq: FAIRX - News) shareholders for the financial year ended November 30th, 2008.

Looking at Fairholme's end-of-2008 holdings, Berkowitz opened new stakes in credit card company American Express (NYSE: AXP - News) and health insurer Humana (NYSE: HUM - News).

Fairholme's interest in the aerospace sector, which emerged in late 2008, also continued, with Berkowitz adding to his stakes in Boeing (NYSE: BA - News) and Northrop Grumman (NYSE: NOC - News).

Meanwhile, Fairholme also added to stakes in diversified conglomerate Leucadia (NYSE: LUK - News), independent energy company Canadian Natural Resources (NYSE: CNQ - News), and health insurer Wellpoint (NYSE: WLP - News). Fairholme was trimming its stake in pharmaceutical company Pfizer (NYSE: PFE - News), though the stock ended up remaining the fund's top holding at year-end.

Looking at tickerspy.com's graph charting the performance of Fairholme's end-of-2008 holdings so far in 2009, one can see that the holdings are staying ahead of the broader market. If you want to see how your performance stacks up to Fairholme's or just see some of the other stocks it's invested in, visit tickerspy.com to see the mutual fund's top holdings and a chart of their combined performance.

Pro portfolio performance is based on institutions' top-15 holdings as disclosed in quarter-end filings with the SEC. Pro performance does not take into account additional holdings beyond the top 15 nor does it include positions that are not required to be disclosed by the SEC. As such, Pro portfolio performance should be considered an approximation and not a precise record of how an institution has performed over time.

Fun and informative, tickerspy.com is a free investing website where you can track multiple stock portfolios, find and share the latest news about the companies you follow, and discuss stocks with other like-minded investors. Best of all, tickerspy.com lets you spy on the portfolios of nearly 3,000 Wall Street institutions and hedge funds and see graphs of their performance. Try tickerspy.com today and find out how you stack up against investing legends like Warren Buffett!

[Investorman]

Net Tangible Assets = Book Value

What Does Net Tangible Assets Mean?

Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value".

[MrBankRoll]

Fair value made crystal clear...

http://en.wikipedia.org/wiki/Fair_value#Fair_Value_Measurements_.28US_markets.29:

LOL!

[reify99]

Until something gets priced--sold. If a distressed seller of the same asset has to raise capital the price is determined by their action. IMO

[MrBankRoll]

NEW YORK (Reuters) - Goldman Sachs (GS.N) Chief Executive Lloyd Blankfein fired back at critics of a controversial fair value accounting rule some blame for billions of dollars in bank losses in an opinion piece in the Financial Times on Sunday.

http://www.reuters.com/article/ousiv/idUSTRE51803U20090209

[MrBankRoll]

Any idea how long they can claim fair value?

[reify99]

And if the fair value deflates, together with the decline in commodities based holdings, the NOLS then have less in earnings to protect. IMO.

[MrBankRoll]

Well, if you want some really cheap shares..... In the 4-5 dollar range.... I'll go ahead and purchase more here. lol!

Gotta promise to share your gains later on down the road though. :~)

[Investorman]

Tangible book usually doesn't include "fair value" and doesn't include "goodwill."

[MrBankRoll]

I just remember them booking huge "fair value" assets into their earnings. Could be devastating when/if they write 'em down.

[Investorman]

Don't know.

[MrBankRoll]

Wonder if they calculate "fair value" into tangible book?

[Investorman]

Below Book Value? Sign Me Up
Tuesday February 10, 8:14 am ET
ByTim Melvin, RealMoney.com Contributor

Unless you have been living on the nonplanet Pluto, you know Dr. Doom has been predicting further stock market declines ahead. Nouriel Roubini has been dead on so far about the economic and market meltdowns, and for that reason alone his viewpoint is worth considering. He thinks the market will continue to fall and the recession is going to be still deeper and longer than many others think.

It is no secret that I agree with a lot of what Roubini has to say. I think there is at least 20% more downside in this market before reality even begins to set in. Piling into the stock market based on some half-baked stimulus or bank plan out of Washington strikes me as dangerous and foolish. There are a lot of cheap stocks around, and I spend most of my time looking for them. But I prefer to use the tiptoe approach to getting into the market.

One of my search methods is running screens based on various criteria. One of my favorites is S&P 500 stocks trading below book value. Last year my good friend Henry Carstens of Vertical Solutions backtested this approach for me and found that this grouping of stocks substantially outperformed the market. I ran that screen yesterday and found that the list now approaches 20% of the S&P 500. That's about as long a list as it has been in some time. A lot of the names are banks, and I'm just not ready to approach banks yet. I think that eventually some banks such as BB&T Corporation and KeyCorp will be make strong purchase candidates, but we need to see how this new plan works (or more to the point, doesn't work) before investing in that sector. There are some stocks, however, that are attractive and worth considering, especially at lower prices.

Leucadia has been referred to as the mini Berkshire Hathaway . Ian Cummings and Saul Steinberg do preside over a collection of operating businesses and public equities, but it's more eclectic than Warren's collection. They are not afraid to buy distressed assets and wait for, or even preside over, a turnaround. The two have managed Leucadia since 1978 and book value has grown at better than 21% over that time.

Buying the stock below tangible book value seems like a pretty safe bet to me in spite of the hits they took in 2008. The pair made investments in mining, auto credit and securities brokerage firms that were pounded in the market selloff. In spite of this, right now you can buy these assets at two-thirds of tangible book value. The company has investments across a wide swatch of the economic landscape, including timber, plastics, clean energy, gaming and real estate. I think it is safe to speculate that Steinberg and Cummings did not suddenly lose their investment acumen and that this stock will resume its growth track in years ahead.

As Maryland Terrapins fan, I find the name tough to see on my sheets, but Duke Energy is now trading at less than tangible book. In recent years Duke has cut back its position in riskier elements of the power industry and now less than 25% of its operations are in unregulated businesses. The 2006 acquisition of Cinergy doubled its service area. The company pays a healthy dividend in excess of 5%, and management has committed to maintaining the payout. If the stock were to fall in line with an anticipated market decline, it would be too cheap even for a Terp fan to ignore

King Pharmaceuticals is a company I wrote about last year. The stock has not really done a lot since then, but plenty has changed at the company. It completed the acquisition of Alpharma in the final week of 2008. The $1.6 billion deal strengthened the company's presence in the pain management market. This should pay long-term benefits by partially offsets generics competition for some its main drugs. If we get to that 6 handle I predict on the S&P 500, King could well fall to levels to cheap to ignore.

Cincinnati Financial has been on my "S&P 500 stocks below book" list for a long time. Although book value has fallen, so has the price. Like many insurers, the company has struggled with poor investment markets and a weak insurance pricing environment. The company is conservative in its underwriting policies and has been able to stay in the black.

Cincinnati Financial has more than $1 billion of cash and equivalents and pays a healthy dividend that is expected to be continued. Management recently said it expects the combination of the dividend plus book value growth to average between 12% and 15% over the next five years. Buying below tangible book should give a slightly higher total return than that over the time period.

These stocks appear to be to have a sufficient long-term margin of safety such that they can be purchased. I would not go nuts, but I'm willing to begin establishing positions in these high-quality names. If Dr. Doom and I are correct, you will have future opportunities to buy more shares at lower prices before the year is over.

[Investorman]

Your guess is as good as mine. I am happy watching AIB.

[MrBankRoll]

"investors won't be sure of where Leucadia stands now until next month, when the deadline for Q4 filings hits."

Is this when they can no longer record their holdings at "fair value"?

[Investorman]

Indie Research
'Mini-Berkshire' Could Rebound After Tough 2008
Wednesday January 28, 9:29 am ET
By the tickerspy.com Staff

Quite a few investors with impressive long-term track records endured an uncharacteristically challenging year in 2008. Among them were Ian Cumming and Joseph Steinberg of Leucadia National (NYSE: LUK - News), a diversified holding company that has sometimes been described as a "mini-Berkshire Hathaway" (NYSE: BRK-A - News, BRK-B - News).

The unique and secretive firm, which has investments in everything from wineries to mines, had a disastrous 2008, dropping nearly -60% after years of steady gains. A number of factors contributed to the decline. The firm is under water on a pair of investments in the financial sector, auto finance company Americredit (NYSE: ACF - News) and investment bank Jefferies (NYSE: JEF - News), and it saw the value of its investment in an Australian iron ore mine decline as the commodities bubble popped in the summer of 2008.

Nonetheless, some market watchers are expecting Leucadia to rebound from its off year. In December, Barron's suggested Leucadia "could hit $30 in the next year if the company's equity holdings turn around and if Steinberg and Cumming take advantage of the current financial distress to display their old stock-picking magic."

Assuming that thesis still holds water, the opportunity is still there. Leucadia's shares have been flat over the last couple of months, and looking at the firm's U.S.-listed equity holdings, it's clear that none of them have yet staged a rebound. Leucadia's equity holdings at the end of Q3, the most recent quarter for which data is available, included laboratory and technical furniture products manufacturer Kewaunee Scientific (Nasdaq: KEQU - News), independent oil and gas company GeoResources (Nasdaq: GEOI - News), Cresud (Nasdaq: CRESY - News), and bank United Western Bancorp (Nasdaq: UWBK - News).

Investors hoping for a rebound will no doubt be wondering where Leucadia was putting its money during Q4.

However, investors won't be sure of where Leucadia stands now until next month, when the deadline for Q4 filings hits. At tickerspy.com, members can track Leucadia's latest holdings, see a graph of their combined performance, and be notified when new holdings are made public.

[MrBankRoll]

The new trillion dollar notes will come in handy. lol!

[Investorman]

I am more concerned about inflation. What good is a million dollars if bread costs $100 a loaf?

[MrBankRoll]

Lots of choices.

90% of me thinks we'll have 'em for a long time.

I just don't see whats going to fire things up again.

[Investorman]

I am kind of nibbling at these lows..... Hopefully they are the lows.

[MrBankRoll]

Like everybody else.... Who knows what the hell is going to happen. On one hand ya want to pick up cheap shares in fear of missing the bottom...... On the other, ya want to preserve as much capital as possible for the upcoming depression. Most days I'm thinking preserve. Once in a while I splurge.

[Investorman]

Maybe they are looking loooooooooooooong term - lol

[MrBankRoll]

Yeah, they were bullish on AIB too. lol!

[Investorman]

I am tired of ugly......

[Investorman]

The Motley Fool guys are still bullish on it too.

http://www.fool.com/investing/value/2009/01/21/5-top-stocks-at-half-price.aspx

[MrBankRoll]

Barrons was bullish on LUK. Wonder if they still are?

http://online.barrons.com/article/SB123154458136069579.html?mod=yahoobarrons&ru=yahoo

[MrBankRoll]

Next week is peak earnings. 400 companies reporting. Gonna be ugly.

[Investorman]

I'm wondering if it isn't about time to add some more LUK to the portfolio.....

[MrBankRoll]

Better be a long one. lol!

Tons of shit yet to be filtered through the system.

First quarter numbers are going to be as bad or worse than the 4th.

More layoffs.

More store closures.

More bankruptcies.

Plenty of fugly to hit the media in the coming months........

[Investorman]

I think I will go on a cruise..... This stock market stuff isn't much fun anymore.

[MrBankRoll]

Sure are seeing a lot of historic records being broken............

BULLETIN >>
Benchmark 30-year mortgage rate falls below 5% for first time ever
1/15/2009 10:41:28 AM

[MrBankRoll]

Barrons making sure the message get's heard.........

STOCKS NEWS US-Barron's sees strong upside for Leucadia (Leucadia National)


1134 ET 08Dec2008-Barron's sees strong upside for Leucadia
------------------------------------------------------------------------------
Shares of Leucadia National, a conglomeration of investments in
businesses and stocks, could rally to $30 in the next year, Barron's reported
on Sunday. The financial publication said the stock could rebound if some of
its equity holdings turn around. Shares of the company advanced
9 percent to $20.21 on Monday.

[RandyKCMO]

Agreed. I think there are concerns that have been voiced about carrying current assets at more than current value...but as a value orientated firm time will prove to be their best friend.

Of course there's always the chance that life as we know it will change....but if we get through our current financial and credit problems I suspect LUK will do just fine.

Randy

[Investorman]

Leucadia could hit $30 in the next year -Barron's
Sun Dec 7, 2008 12:57pm EST

NEW YORK, Dec 7 (Reuters) - Shares of Leucadia National (LUK.N: Quote, Profile, Research, Stock Buzz), a conglomeration of investments in businesses and stocks, have fallen 60 percent since Sept. 30, to about $17 but could hit $30 in the next year, Barron's said on Sunday.

Many of Leucadia's key equity holdings, including Australian iron-ore producer Fortescue Metals Group and Jefferies Group Inc (JEF.N: Quote, Profile, Research, Stock Buzz), have suffered declines but if Ian Cumming and Joseph Steinberg, the secretive duo who run Leucadia, display their old stock-picking prowess and if some of the company's equity holdings turn around, the stock could rebound, Barron's said.

Many investors see Leucadia simply as a way to profit from the investment acumen of Cumming and Steinberg, who may be the lowest-profile leaders of any sizable public company, according to Barron's. They make public appearances only at the annual meeting. Few analysts cover the company.

But past results inspire continued confidence in fans. "I don't think that they suddenly took stupid pills," one investor told Barron's. (Reporting by Helen Chernikoff; Editing by Leslie Adler)

[Investorman]

Leucadia Is Looking Good - Barron's
by: SA Editor Rachael Granby December 06, 2008

With both savvy management and cheap assets, Barron's Andrew Bary says Leucadia National Corp. (LUK) may be the closest thing to what Berkshire Hathaway (BRK.A) was 20 years ago.


Invested in a diversified portfolio of stocks and businesses, Leucadia has generated impressive returns and gained dedicated fans amongst value-oriented investors. Its shares, however, are down 60% since the end of September.

Some investors fear that Ian Cumming and Joseph Steinberg, the duo that have run the company for the last thirty years, have lost their touch and point to declines in many of Leucadia's key equity holdings. Given recent market declines, Leucadia's book value has probably fallen close to $20/share, and investors tend to value the company on book value, rather than earnings, because most of its worth lies in investments. But fans defend the stock, saying it's oversold and could rise from its current $18.55/share to $30 in the next year if equity holdings turnaround and the company displays its old stock-picking magic once again. With Cumming and Steinberg signed on through at least 2015, many holders are buying as much into the investment acumen of those two individuals as into the company itself.

Like Berkshire, the company believes in a strong balance sheet. As of the end of September, Leucadia had $8.4B in assets and $2.6B in debt and other liabilities. It had about $500M in cash and cash equivalents, and will not be paying out dividends this year. Unlike Berkshire, Leucadia tends to focus on speculative companies rather than operating businesses, which has hurt profits during the current economic downturn. Still, Leucadia presents an attractive play on its depressed investments and on the ability of Cumming and Steinberg to continue to find new investments.

[Investorman]

Seems like as good of reasoning as any. The current situation is unprecendented in my lifetime so we are asea without a compass.

[RandyKCMO]

I read someone's best guess about the next month or two and thought it made pretty good sense.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33881988

In the past, tax selling extended into the holidays as most investors plan to abandon parts of their holdings all together, or get back in for the lows of January/February. This year most investors have already taken all the tax losses they can stomach, and really don't need any more. So, savvy investors are looking to get back in at current lows and certainly in the coming weeks to take advantage of an early Santa effect and end of year rally as short covering sets in. Here you need to think manic/depressive as we have seen for almost a year now. Early January selling on "more bad news" will be followed by the Obama rally that will set in with high expectations that can't be attained in the first 100 days. Ooops, look for a May peak on a last wave of exhuberant buying and then the summer slide. The first changes in policy won't really set in until after the first quarter of the fiscal year. The real story of whether or not the Obama policies will work will unfold next fall.

Of course these dates aren't set in stone, especially after the first of the year, but from what I can gather we will follow that pattern fairly closely and roughly within that time frame, give or take a week or two.

[MrBankRoll]

I expect they will. What the government is doing is like putting a bunch of band-aids on a compound fracture..... With two severed arteries.

Holiday season sales are going to suck. 4th quarter numbers are going to suck. And unemployment is going to continue to rise, in a big way.

[Investorman]

You are no doubt correct but things could get even worse.

[MrBankRoll]

If bearish sentiment was 55% in July....... It must be 95% today. lol!

[Investorman]

Buffet says its time to "Be Greedy"

http://www.fool.com/investing/general/2008/12/04/buffett-says-its-time-to-be-greedy.aspx

[Investorman]

After Tough Stretch, 'mini-Berkshire' May Find Buying Opportunities
Wednesday December 3, 9:33 am ET
By the tickerspy.com Staff

Diversified holding company Leucadia National (NYSE: LUK - News) has frequently been called a "mini-Berkshire Hathaway" (NYSE: BRK-A - News, BRK-B - News) because of the firm's ability to bring in impressive returns from investments in a wide variety of sectors, ranging from medical products, to telecommunications, to wineries.

However, this year Buffett has left Leucadia in the dust. Leucadia stock has plunged about -64% year to date, and the company recently announced that it will not pay a dividend in 2008, citing "market conditions and current economics." Nonetheless, though Leucadia may report a year-over-year drop in book value, it is still trading at a discount to that book value, and the current climate has likely presented the firm with plenty of attractive investment opportunities.

Chairman and CEO Ian Cumming and President and COO Joseph Steinberg invest in a wide range of firms, but generally have stakes in just a handful of U.S.-listed equities.

During Q3, Leucadia opened a new stake in laboratory and technical furniture products manufacturer Kewaunee Scientific (Nasdaq: KEQU - News) and upped its stakes in independent auto finance company Americredit (NYSE: ACF - News) and independent oil and gas company GeoResources (Nasdaq: GEOI - News). Subsequent filings have shown that Leucadia has increased its stake in Argentinean agricultural company Cresud (Nasdaq: CRESY - News) since the end of Q3. Meanwhile, the company was trimming its stake in bank United Western Bancorp (Nasdaq: UWBK - News) during Q3.

Investors clued into Leucadia's incredible track record watch the firm's moves closely; an investment in Cumming and Steinberg's firm has returned an astonishing compounded annual growth rate of 33.9% since inception, according to Leucadia's 2007 annual report.

Leucadia largest stake at the end of Q3 was in investment bank Jefferies (NYSE: JEF - News), and it helped the company stave off the challenges of the credit crunch. Jeffries CEO Richard Handler told Reuters earlier this year that the funding from Leucadia put the bank "in a position to play offense," even as the rest of Wall Street is in a defensive crouch.

Looking at tickerspy.com's graph charting the performance of Leucadia's end-of-Q3 holdings so far during Q4, one can see that the holdings have slumped a bit, though they aren't lagging the market by too much. If you want to see how your performance stacks up to this "mini-Berkshire" or see some other Leucadia holdings, visit tickerspy.com to see the firm's top holdings and a chart of their combined performance.

Pro portfolio performance is based on institutions' top-15 holdings as disclosed in quarter-end filings with the SEC. Pro performance does not take into account additional holdings beyond the top 15 nor does it include positions that are not required to be disclosed by the SEC. As such, Pro portfolio performance should be considered an approximation and not a precise record of how an institution has performed over time

[MrBankRoll]

Wonderful! By the time this is over I'll be a full fledged masochist.

No pain.... No gain!

lol!

[Investorman]

Leucadia National Corporation Announces Decision Not to Pay Cash Dividend for 2008
Monday December 1, 1:18 pm ET


NEW YORK--(BUSINESS WIRE)--Leucadia National Corporation (NYSE:LUK - News) announced today that, in light of market conditions and current economics, its Board of Directors has determined not to pay a dividend on its outstanding common shares for 2008.

[MrBankRoll]

A couple of my interests........ JNJ-PFE-MO-VGR