LUK

[aiki14]

LUK (Leucadia National) is a stock I have touted here in the past, had it's stock price drop 5% on thursday. Aside from thinking this is a real good point to enter it is also another type of opportunity.
The reason for the drop in the stock price was they are issuing $500 million in bonds. The bonds have an 8.125% coupon. The yield was 8.42% when I saw them thursday.
I am a real believer in the company long term, I have called them a baby Berkshire and made money on them and some of their picks.
If you're looking for a good ROR this would be a nice investment to consider.

[aiki14]

I probably should have added this link as a tremendous resource for bond investing.
http://www.investinginbonds.com/

[MoMoney4Me]

Ditto......
LUK can be a core holding in any long-term portfolio.

[clavocat]

took a looksy at it and its a pretty solid stock, msn said conglomerate, and yahoo said they are in the lumber business sector...little more research tonight and tomorrow and i might eye this for my mutual fund.

[clavocat]

how are they doing so well, seems like most of their business is in homebuilding materials, other an winerys and real estate, im going to continue researching this, great ROR and looks like the company has its act together. good catch aiki!!

[BigDawg291]

I really like this stock.

[clavocat]

curious they are issueing 5,500,000 shares in a secondary offering, wont this dilute earnings/create more supply pushing the stock down?? never witnessed this happening yet, kind of the opposite of a buyback. thoughts?

[clavocat]

http://www.leucadia.com/C&P%20Letters/C&P2006.pdf

aiki and Mo you just gave me a new favorite stock, up 8000% over the last 20 yrs, this conglomerate is like berkshire hathaway, i love that analogy aiki, read that if you want to know more about the company.

[clavocat]

anything?

[aiki14]

anything?

I get the letter, they send it out every year to shareholders. I love the fact that these guys rarely agree on anything, but come out ahead nearly every time. I bought WINN when they announced a stake at 15, and sold it at 31 two months later. Watch Fortescue (FMG on the ASX) they have a big stake, if Fortescue runs up LUK follows. Since the ASX closes before we open sometimes it's a trade you can play.

[aiki14]

This was in another thread today:
Why this fund manager only has one corp bond in his portfolio. Guess which one.

http://www.onlinetradersforum.com/showthread.php?t=14788

[clavocat]

I get the letter, they send it out every year to shareholders. I love the fact that these guys rarely agree on anything, but come out ahead nearly every time. I bought WINN when they announced a stake at 15, and sold it at 31 two months later. Watch Fortescue (FMG on the ASX) they have a big stake, if Fortescue runs up LUK follows. Since the ASX closes before we open sometimes it's a trade you can play.


ya 9.99% of it, that thing has over doubled, they invested 400mil and its worth 1.2 bil now!!!

[aiki14]

51.02 @ close. Up 15% since I started this thread, 96% for the TTM. Not too shabby.

[tim_teasly]

I have been watching this stock for several months now after seeing it mentioned in this forum. Started watching at 33.00 now at 51.00. What are the thoughts of getting in a this point? I have the funds to make a move. Will waiting for a pullback on this be negligable?


Keith

[aiki14]

I have been watching this stock for several months now after seeing it mentioned in this forum. Started watching at 33.00 now at 51.00. What are the thoughts of getting in a this point? I have the funds to make a move. Will waiting for a pullback on this be negligable?


Keith

Pullback would be nice if you could get one but for the long haul just buy in. I believe in these two guys and their philosophy of investing, and their ability to pick winners. But if I am wrong, it's your money, so do your due diligence.

[clavocat]

Pullback would be nice if you could get one but for the long haul just buy in. I believe in these two guys and their philosophy of investing, and their ability to pick winners. But if I am wrong, it's your money, so do your due diligence.

+1 aiki

Since you and Momoney brought this up, I've done countless hours of research on this stock and I have not found one think i dislike about the company/management, the only problem i have with this stock is its like an exponential curve on the chart, a big (20%) correction in this stock may be coming, if not we should see a split real soon. Tell me what ya think aiki. I'm thinking about taking an even larger position in, I delayed buying a car and I have a couple grand for some mad money, (either LUK or OBCHX or both) so i was thinking some far out protective puts.

[aiki14]

+1 aiki

Since you and Momoney brought this up, I've done countless hours of research on this stock and I have not found one think i dislike about the company/management, the only problem i have with this stock is its like an exponential curve on the chart, a big (20%) correction in this stock may be coming, if not we should see a split real soon. Tell me what ya think aiki. I'm thinking about taking an even larger position in, I delayed buying a car and I have a couple grand for some mad money, (either LUK or OBCHX or both) so i was thinking some far out protective puts.

I don't see how there could be a 20% correction in LUK short of a worldwide economic disaster, they are a diversified investment company with a lot of overseas exposure. They outperform the benchmarks in up and down market conditions. I am buying the dips for the foreseeable future.

[Imperator]

i've been doing research also.

But i haven't got that deep into it yet.

What's with the earnings, they seem very odd. They had that huge earnings, and then fell back off, and not to mention the P/E

[clavocat]

i've been doing research also.

But i haven't got that deep into it yet.

What's with the earnings, they seem very odd. They had that huge earnings, and then fell back off, and not to mention the P/E

I'm guessing it was a sale of one of their holdings that boosted it up.

Aiki, if you look at some of the pullbacks in the past, you will see some 20%+ corrections, but then again you've been in it for a while unlike myself. either way great company, buy on the dips and you'll make alot of cash by holding.

[clavocat]

I'm guessing it was a sale of one of their holdings that boosted it up.

Aiki, if you look at some of the pullbacks in the past, you will see some 20%+ corrections, but then again you've been in it for a while unlike myself. either way great company, buy on the dips and you'll make alot of cash by holding.

couple weeks later, were in a 10% pullback in a slight downtrend, another 10% and a turn around and I'm loading the boat. everytime this stock had an exponential chart it pulled back 20%.

[Albert0373]

As mentioned in my FXI thread, built my position in LUK yesterday late afternoon in the high 43s. Good solid stock to have in your long term portfolio. Thanks aiki!

[pa-sale]

WOW. House of pain today. I am not in this but was considering going long.


Jim, any insight to this huge drop today?

Adam

[pa-sale]

Anyone buying at these levels? Looks tempting at these levels. Is the dividend safe?

[Gordo]

Get out while you can. Its gonna get worse.