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$39.58 1.05 (2.73%)
10/7/2008 11:40 AM

Leucadia National Corp. (LUK)

CAPS Rating:
*****

A diversified holding company engaged in a variety of businesses, including manufacturing, real estate activities, medical product development, winery operations and residual banking and lending activities that are in run-off.

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Recs

3

Avatar NeroSagetrade (47.00) Submitted: 10/01/07 1:40 AM : Underperform Start Price: $48.43 LUK Score: -12.61

Ok, lets take a holding company currently investing in the worst possible sectors of the market, slap a trailing price to earnings of 94 on it, price it at 12 times sales, and claim it goes higher??? Uhhhh no.... Lets dissect....invests in real estate activities and manufacturing. The housing industry is at a sixteen year worst and manufacturing is down dramatically. Banking and lending...ok, once again, the majority of lending is done on the housing front and credit is sparse right now. Winery operations...word from most wineries is production will be way down this year. Insurance....property insurance should be a drag given the above housing comment. To top that off, you have the CFO selling 121,000 shares and the company pricing 500M worth of shares at $45.50. Seriously, could this give us any more red flags???





Nero


Sagetrade

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Avatar cubanstockpicker (73.75) Submitted: 3/01/08 10:42 AM

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LUK has that high P/E because they keep dragging out an old debt from the purchase of a telecom. LUK really doens thave a P/E that high, but it beneifts them on the balance sheet. This is definitely not a company a monkey can run, and that why you want those guys in there. You may dissect, but they dont buy the real estate your thinking of. They also just bought an airport in florida for a sweet deal and dumped 3 million into Avistar which they also changed the whole operation. Avistar has 79 patents, 26 of them are being challenged by Microsham. They have tried four revious times and Microsoft has lost, miserably. Now Microsoft is trying again, and Avistar will just laugh all the way tot eh bank since Microsoft will start having to pay Avistar for patent use retroactively.

I have owned LUK since 2001 and I just started buying Avistar. I am not pumping any of these stocks to you to tray and raise the price. Besides even is I sold every share I owned, 570 to be exact. It wouldnt even register.

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