Wow.Apparently "wow" was Steve Jobs' last word as he passed away.
Well, gang, here we are. Here we #$^$!$#$!%^&%^*%&*%&*%&*%$ are.
It seems that the worst-case scenario has played out. The price has been driven down and there is seroius attempt being made to acquire the company below market value.
It seems to me that litigation risk involving Fairfax is being managed by having this transaction take place via a non-Fairfax company. Given that Rivett is a former FFH director this whole take-over situation is murky at best. Watsa got hauled into court for some fancy footwork regarding another take over deal. It looks like he wanted to avoid that this time.
Clearly some sort of investor protest is needed. We expected that to come from FFH, but FFH is on the other side it would appear. Damn. Damn. Damn. Damn. Damn. Damn. Damn. Damn.
Either we launch our own protest using legal means, since that is the only method that matters or hope other shareholders do so. I do not anticipate other shareholders doing so. There are no big players that will challenge this as far as I can tell.
Effective immediately, I would encourage you to boycott all Fairfax-related businesses including: Toys r Us, and according to Wikipedia:
This proposed boycott is somewhat problematic for me as I have invested a good chunk of cash in FFH recently. Aaaaaaaaaaaaaaaaaaaaaarghhhhhhhhhhhhh!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
In retrospect, the best move would have been to average down down down down. I think that would have made things worthwhile.
Come on man. How can a takeover be allowed during the present health crisis which has temporarily and negatively depressed the shareprice?
As I detailed in a previous post, the strategy seems to be: buy at artifically depressed prices, take company private at those price, the price "miraculously" rebounds during the years as a private company, the company is sold at a more appropriate valuation, the private stakeholders win.
F*&!