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Egan Jones With Latest Jefferies Shocker: "Unsustainable... 77 Cent Recovery On Senior Debt... We Will Cut Without A Major Deleveraging"
And here is Egan-Jones again:
Synopsis: Unsustainable, in our opinion - JEF needs to raise equity (i.e., $1B) AND deleverage to reduce its 9.5+% LT yield. JEF's total debt to capital is 90.4% vs. 67% for IBKR, 62% for RJR and 43% for GFIG. GS and MS have ratios near 88% but they are significantly larger and should have some federal support via their banking charters. Furthermore, MF's freezing and shortchanging client funds have increased scrutiny of other medium-sized brokers. Raising $1B in new equity and reducing assets by $5B would reduce total debt to capital to only 86%. Email us for a more granular liq. analysis showing a 77% recovery for the sen. debt. Watch the recent rise in int. exp. relating to an acq. and the cost and avail. of funding. We will cut without a major deleveraging.
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Jefferies is fine
/Cramer
Egan-Jones and ZH really have a hard on for JEF.
Something something smoke something something fire.
Luckily for me silver doesn't burn.
Luckily Groupon Stock Certificates do, because at this rate all they will be good for is kindling soon.
They are the underwriters for MF Global Bonds and they are liable for various law suits now.
Of course they will be under scrunity.
Then there will be the next, and next and next....until all the dominoes fall.
Remember if there is one cockroach in the kitchen, there will always be some others that you don't see them yet.
Cockroaches indeed. Corzine hasn't been questioned, and will likely be hired by GS or the like in short order. Justice is blind... Yeah, real blind. Just read this yahoo story, and nearly puked on my keyboard - http://finance.yahoo.com/blogs/daily-ticker/return-debtors-prisons-colle...
Someone should do some heavy editing on his Wiki bio to help portray the real incompetent and criminal that he is.
http://en.wikipedia.org/wiki/Jon_Corzine#Post-gubernatorial_career
It is interesting reading his bio, his ex-wife said he let his family down and would let down the people of New Jersey as well, how prescient of her!
He was injured in an accident once, not wearing a seatbelt, way over the speed limit, with a state trooper driving him..................didn't requalify for certain FINRA licenses............obviously someone who felt the laws for the little people didn't apply to him..........when reading of these incidents in his bio no one should be surprised by the looting of the customer accounts at MF Global by this kind of narcissistic sociopath...........
fuckin o.j. knows corzines guilty....
The Tylers have a good nose for smelling bullshit, which is all Jefferies has been talking since MF Global went tits up.
Cue Dick Bove:
(out on Fox just one minute ago):
Rochdale Securities analyst Dick Bove told FOX Business that Jefferies is an "acquisition target" and the most likely acquirers are capital rich Canadian banks, which include Royal Bank of Canada and TD Bank Group.
Read more: http://www.foxbusiness.com/industries/2011/11/22/exclusive-jefferies-ceo-weighing-future-as-independent-firm/#ixzz1eSVizxX8
Someone tell the 2 dicks, thats not happening. Canadian banks are more interested in regional bank acquisitions.
Tricky Dick starting a rumor to ramp the stock. Must have a rather large sack of JEF turds over his shoulder.
Hope they are long crude - http://hedge.ly/rCdNNI
Should of went for that discount window but Nooo you wanted to be The Last True Investment Bank didn't ya?
By the way, when will Goldman be opening up a bank branch near me? I thought there were rules for banks about making sure they have enough locations to serve the public. Surely, Goldman must have branches all around the country, if they are a bank. I am walking distance to their headquarters. Do they have ATMs in there? Do they offer personal checking with BillPay?
Funny you ask. The Squid doesn't so much have 'branches' as full service tentacles. Also, they have ATMs but it stands for something else and you absolutely must be a customer.
I'm pretty sure they hand out ATMs to most people, not just clients proper...
LOL- Dick, Dick, Dick..... Find out where Corzine is hiding, go join him while you can......
That sounds an aweful lot like Tick, Tick, Tick.......
Timely, from the Blowhorn.com Jefferies Winning Battle vs Critics, Shorts
I knew Jeffries was BS everybody. They are the next one to go and it will be nasty.
12 page letter from Jefferies in 3...2...1....
Yadda Yadda IMF Yadda Italian bonds
We'll be fine.
Or another 2 page pdf a la MF'ing Global "highest ethical standards" type crap!
I'd like to hear Whitney's opinion on this before I do anything.
Funniest comment this morning!
I think he meant Whitney Houston.
"Jefferies is undervalued compared to its assets. I'm a buyer."
Whitney Houston? What the hell would she know about this?
"We will cut without a major Deleveraging".
Newest EJ consultant: David Copperfield
Then what did they look like 2 months ago before they "fixed everything"? -- YIKES!!!!
But the Dick Handler said everything was okay ???
I think his name is Rich Handler.
And that is better? Seriously? Look at what you wrote.
If I had significant wealth, I would not go to someone named "Rich Handler." I do not desire to be "Handled."
The only other person with a worse name is racecar driver Dick Trickle. Seriously???
The Detroit Lions used to have a player by the name of Harry Colon. I always thought that was an unfortunate name.
When I was coaching baseball back in the 1990s, I knew a kid named Royal Ferry.
Real name, real spelling.
Worst thing I ever heard on the radio was a snippet of a NASCAR race: "He started on the pole, and now, I can't believe it... He is lapping Dick Trickle!"
/true story
All time worst has to be "Dick Buttkiss"
this footballer had a good one: http://en.wikipedia.org/wiki/Dean_Windass
at least he was the dean of the family
"Egan-Jones Ratings Company"? Hmmm, sounds like a speculator trading on more lies to me. I'm sure JEF would be fine if these speculators stopped trying to release facts.
"Science is like a blabbermouth who ruins a movie by telling you how it ends! Well I say there are some things we don't want to know! Important things!" - Ned Flanders
When are all the (second) European country downgrades coming from EJ?
I would like to see the granular liquidity analysis from EJ and then JEF's refutation.
77 cents recovery: it was trading at 90 cents just last week. That IS a haircut for sure.
Latvia cancels an auction of 10 year bonds - maybe nothing, but maybe a canary in a coal mine. "My perception of eurozone debt markets is that they are now on strike," says Charles Robertson
http://seekingalpha.com/currents/post/102343?source=kizur
In Soviet Latvia, bonds buy you.
' "My perception of eurozone debt markets is that they are now on strike," says Charles Robertson '
Way to go Charlie, you certainly have a pair of eyes and firing synapses. Here's a million €.
Jefferies is fine.............until they arent
Everyone will get a chit for their losses. Calm down now. Go on with your business.
No, you can't redeem the chit for money or trade it for goods.
it's a chit, and you took it.
I have two US futures accounts. One was MF (ex Lind) and the other is cleared through Jefferies. And I am still happy.
WVO, can I have some of what you are smoking? I KNOW I've got my old "Be Happy, Don't Worry" sign around here, with the picture of the dopey guru...
I believe it is "Don't Worry, Be Happy".
"We will cut. If you don't clean up your act, mister, we're gonna cut. We mean it this time - we'll cut ya!"
Enough already with the foreplay. Stick it in.
Just the tip?
No, you can go "all in".
Jefferies: Actually I don't have any cash
http://www.youtube.com/watch?v=qS-7zTzrSAA
In a fascinating how a chicken can sometimes run around after its head was cut off.
Jefferies is dead. They just dont know it yet.
Where is the white knight? Nowhere to be seen.
Speaking of chickens with no heads there's BAC http://www.reuters.com/finance/stocks/BAC/key-developments/article/2438448
"In the absence of progress, the informal order could turn into a formal and public action, which would likely mean intensified scrutiny and greater restrictions."
Maybe after "intensified scruntiny" people will start to realise what "technically insolvent" means
*John Carney of CNBS blogging fame rides in on his trusty steed, Bullshitter.*
Jefferies Winning Battle Against Criticshttp://www.cnbc.com/id/45402250
white knight is michael millken. on the way!
oh. except he can't work in the securities industry any longer.
check out the millken/ handler legacy.
You're an idiot...enjoy your posting freedom while it lasts.
After nearly 36 straight hours of it I am guessing the Tylers don't really mind.
I mean who wouldnt trust a forum troll and spammer with their money, I mean it only makes sense. As for me, as soon as this Nigerian prince forks over the 2.3 million Im due anyday, Im all over this forum guru equity specialist. He sounds awesome.
"We will cut without a major deleveraging."
This is what the future holds, for S&P. Without Qe3 (free money) you need to deleverage.
This is how depressions work.
Here's what Jeffries had to say in an investor-letter about ZH's favorite short-seller paid rating agency analyst:
Second, we were both shocked and perversely amused when the analyst who first misled the public about our sovereign debt exposure being 77% of our shareholders’ equity actually had the temerity to state on widely broadcast television that he omitted the material fact that we had almost equal and offsetting short sovereign debt positions because, and we quote, he had “space constraints.” (By the way, that same analyst also points to our 12.9x leverage at the end of August to be too high, but omits here the further material point that we have been operating successfully and profitably with similar leverage for years, including during the 2008-09 financial meltdown. In addition, he said that our leverage ratio was now higher because our stock was trading lower. As all of you probably recognize, trading prices are irrelevant to a company’s leverage ratio. Neither our equity, our debt obligations nor the cost to us of our existing debt changes one iota with market prices. What more can we say on this one?)