Thursday, November 5, 2015

Leucadia: Trading At 70% Fair Value Despite Long-Term Growth Potential

We recently posted our investment thesis on Leucadia, a well-managed but misunderstood conglomerate, trading at only 70% our estimate of the value of underlying assets. We believe that short-term cyclical headwinds will fade and shares should trade up to 45% higher.

TLDR: "With Leucadia, we believe that you have a well-diversified investment organization with access to excellent deal flow from Jefferies, managed by highly capable and aligned managers, but trading at only 70% FMV of its assets. We think the shares are worth around $29 or 45% higher than today's share price, with potential for long-term appreciation."

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