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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (46322)	1/25/2012 1:02:53 PM
From: benbuffett	Read Replies (1) \| Respond to of 78652

Hi Paul, Noticed that the Canadian Buffett (Prem Watsa) has 18% of the common along with value guys steelhead partners which also own a chunk. Mgmt also has some skin in the game!

To: Paul Senior who wrote (46322)	1/26/2012 1:20:10 AM
From: Spekulatius	Respond to of 78652

re ABH - I have owned and sold this for a loss a while ago. I bought this based on the assumption that the economy would recover nicely and asian lumber exports would provide some gravy. I am not sure that either one is happening. Facts as I see them: 1) ABH is a crummy business (newsprint, pulp) and has sold of the most valuable assets during the bankruptcy (timber, hydro power assets) 2) They dramatically reduced debt through the bankruptcy process but they still have 1.2B$ in net pension liability as of 12/30/11 (see excerpt) 3) Almost half of their "Tangible book value" is actually a deferred tax asset. They need an enormous deal of earnings to make this deferred tax asset "real". 4) No dividends unless the pensions are at least 80% funded Excerpt from Y2010 10K: We record assets and liabilities associated with our pension and OPEB projected benefit obligations that may be considered material to our financial position. We also record net periodic benefit costs associated with these obligations as our employees render service. As of December 31, 2010, we have pension and OPEB projected benefit obligations aggregating $6,710 million and accumulated pension plan assets at fair value of $5,422 million. Our 2010 net periodic pension and OPEB benefit cost was $37 million.