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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (58635)1/14/2017 9:56:39 AM
From: E_K_S  Read Replies (2) of 78657
 
Watching but still no interest as I have a hard time determining value.

Moody’s Reaches $864 Million Subprime Ratings Settlement
That penalty is about a third of the $2.5 billion that Moody’s earned in the four years leading up to the crisis. Standard and Poor’s, after fighting the U.S. in court for two years, settled similar claims with the U.S. for $1.5 billion last year.
Friday’s settlement calls for Moody’s to pay $437.5 million to the Justice Department and $426.3 million to the states. California, an epicenter of the subprime debacle, will get $150 million from the agreement, the state’s attorney general said in a statement.

An after-tax charge of about $702 million, $3.62 per share, will be recorded in the fourth quarter of 2016, Moody’s said in its statement.

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That's 80% of Yahoo's 2016/2017 EPS(TTM) of $4.48/share.

I know that Buffet liked the company but I have a hard time estimating fair value (they carry a negative BV according to Yahoo). It looks like Berkshire owns 24.5mln shares or about 12.5% of the outstanding shares.

FWIW, it looks like different layers of government get the settlement monies but I see no statement that any of the bond holders will receive a penny.

EKS
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