Allergan (AGN) Update

Allergan Plc (AGN) shares fell about 20 percent in after hour trading Monday [Source] after the U.S. Treasury Department issued rules that would limit “inversion transactions” and the ability of U.S. companies to issue debt to their foreign parents. It appears the rules are aimed at the pending Allergan and Pfizer (PFE) merger. A reader asks: “Does treasury […]

New Buy Allergen, PLC (AGN)

Pfizer (PFE) and Allergen, PLC (AGN) agreed to merge in a $160 Billion deal announced November 23, 2015 [Source].  It is a tax inversion transaction expected to close in the second half of 2016. Allergan trades at a considerable discount to the offering price offering a potential bargain. Allergan (AGN) and Pfizer (PFE) Investment Thesis: When […]

Breitburn Energy (BBEP) Risk & Reward Turns Unfavorable: Time to Exit

Breitburn Energy Partners LP (BBEP) and EIG Global Energy Partners (EIG) announced [Source] a  “definitive agreements whereby Breitburn will sell $350 million of perpetual convertible preferred units and $650 million of senior secured notes in simultaneous private offerings to investment funds managed by EIG, and other purchasers. These offerings are expected to close on April 8, […]

Breitburn Energy Partners (BBEP) 4Q14: A Good Report; Our Thesis is on Track

Breitburn Energy Partners LP (BBEP) reported [Source] financial and operating results for the fourth quarter 2014 (4Q14) and full year 2014. It was a good quarter and full year especially in light of the sharp decline in crude oil and natural gas prices since mid-year 2014. The company’s management team is experienced and has navigated […]

Breitburn Energy Partners (BBEP) Investment Thesis:

Breitburn Energy Partners (BBEP) is an upstream Oil & Gas company operated as a master limited partnership (MLP). They buy mature crude oil and natural gas producing properties with slow decline rates. The fields generally have long production histories, some dating back to the 1800s, from 7 different areas throughout the United States with a […]

Genworth Financial (GNW): A Good Return but Time to Sell

We invested in Genworth Financial (GNW) during November, 2012 after the share price fell to $5.50/share. The investment thesis [Source] discusses the company then trading at about 16% of book value ($33.52/share); 25% of estimated intrinsic value ($22/share); and 32% of net tangible assets ($17.31/share). The worst of the financial crises was behind it and […]

Genworth’s Australia Debut

Genworth’s Australia debut raised $545 million in U.S. dollars and begs the question; now what? Genworth announced that it’s’ subsidiary, Genworth Mortgage of Australia Limited priced its initial public offering (IPO) of 220 million shares at $2.65 Australian Dollars (A) for a total of A$583 or US$545. This 34% sale of the business values the […]

Genworth Financial (GNW) 1Q14 Executing and Getting Stronger

Genworth Financial (GNW) reported 1Q14 earnings on April 29, 2014 [Source] The company reported net income of $184 million, or $0.37 per diluted share, compared with net income of $103 million, or $0.21 per diluted share, in the first quarter of 2013 for a 79% year over year improvement. The 1Q14 net operating income was […]

Genworth Financial (GNW) Update

Genworth Financial (GNW) operates two core businesses: 1) U.S. life insurance (life insurance, leadership position in long-term care insurance and fixed annuity products); and 2) global mortgage insurance. There is also a runoff segment consists of variable annuity, variable life insurance, and corporate owned life insurance. Long term care insurance provides the cost of long […]

Genworth Financial (GNW) 4Q13 Good Results and Expecting More:

Genworth Financial (GNW) reported 4Q13 earnings on February 4, 2014 [Source] and held their 4Q13 earnings conference call the following morning. The company reported net income of $208 million, or $0.41 per diluted share, compared with net income of $168 million, or $0.34 per diluted share, in the fourth quarter of 2012 for a 24% year […]