Warren Buffett, LEE Enterprises and Berkshire Hathaway’s choreography.

The buy programs for Lee Enterprises (LEE) common stock are steady and the daily pick up equates to 10k to 70k blocks each day depending on the volume of the day. With LEE, the stock price is wildly less than free until the shares hit $2 and a fraction per share.

This is not just Berkshire accumulations, there are companies in Canada, Mexico, Singapore, Japan, Korea, that are front and center on the action. Any hedge fund worth their salt is accumulating.

This is known.

Since publishing my article on oldschoolvalue.com we have had almost 4000 investors who have read the article. This is not including the syndication intercepted by gurufocus.com.

Lee enterprises is turning out to be the single most important investment opportunity this year and next.

I am not the only investor who realized this. Glen Bradford discovered many months before me.

In comparison to the S&P 500, I am expecting this stock to raise 300% – 500% just to catch up with rest of the pack.

An interesting fact, this is the lowest price Berkshire Hathaway publicly traded company (available to all of us). The next inexpensive is Bank of America, but LEE has maybe .0000001% the volatility of BAC.

Another bit of relevant information for consideration is that the company has roughly 150 positions that they are actively trying to fill in technology and advertising.  This is certainly a result of Warren Buffett’s intervention (and possibly a condition as well).

As Buffett has stated: Once part of the Berkshire Hathaway family, credit and liquidity is second to none and never a problem to access.   As we know the former creditors of LEE were monkeying around and jamming them with unrealistic terms.  The backlash of course, was for Lee to file for Chapter 11 which then generated more favorable conditions and terms (at little risk to current investors).

Not all companies that loan money to other companies have good intentions.

Additionally, there are tendencies to exacerbate liquidity/insolvency issues (and generally create chaos during times when things are already 110% difficult)…maybe all they care about is the origination fees and gorging themselves on the profitable remains of companies BUT Buffett and his AAA credit rating just eliminated this from the equation.

Remember not all corporate debt is bad.

In fact, during these perpetually tough economic times getting a loan should be seen as an unusually positive event.

Ask yourself.  Are you loan worthy? Is your company loan worthy?

For 80% of the world (where loans are concerned) the answer is no (or just barely) …but for LEE the answer is a resounding yes.

Frank

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