Sunday, September 18, 2011

Light Commentary and Some Links

I'm going to try something a little different today.  Recently there's been a handful of interesting articles/analyses/press releases on companies I own, so I thought I'd provide the links and do some light commentary around them.

First there's Terra Nova (TTT).  As discussed in previous posts, the company is basically an investment vehicle for Michael Smith.  But since no acquisitions have been made, owning TTT requires a bit of blind faith in Smith.  In this vein, here's one of the best analyses I've found on his historical track record:

Then there's Sears.  They're spinning off Orchard Supply, started selling Craftsmen tools at Costco, and hired a new CFO.  Taken individually these may not sound like much, but taken together this may signify the beginning of a transformation from a retail operation to a brand/real estate/asset holding company.  Here's a good blurb on the Craftsmen part:  Here's the Wikipedia page on the new CFO:  Clearly, Schriesheim is a turnaround/restructure guy - my guess is Sears wouldn't have hired him unless this is their intent AND he wouldn't have accepted the job unless he judged there was a reasonable likelihood of succeeding.  And lastly, if you're sick of my bullish sentiments, here's a good commentary with a bit more of an even keel:

And what about JOE?  Well, regular readers know I'm a huge fan of Bruce Berkowitz.  In fact, his involvement with St. Joe is one of the main reasons I bought the stock (  Additionally, Berkowitz has been an investor in LUK (my largest holding) for 10+ years.  So what's the connection?  Well, LUK has done commercial/residential real estate development on the Florida panhandle, and JOE's recent appointments/hires of Brady, Bienvenue, and Keil all come from LUK.  Frankly, it wouldn't surprise me to see LUK and JOE partner up sometime in the near future.  Lastly, JOE has recently agreed to let Berkowitz acquire up to 50% of their shares (he currently owns 30%), so my guess is he's confident in their prospects.

Well, I hope you enjoyed the commentary and links!  And I always like hearing from my readers, so feel free to email me with any comments or questions (