Harbinger Group, I Smell Smoke.

An interesting word I came across recently used to describe the role of certain hedge fund managers undertaking the tall task of rebuilding structured finance products which have come into expiry: “Revisionary”. 

Repackaging pools of shit, laundering them into the market, and then marking them up as close to outer space as possible before  structuring a short and dumping it all in grandma Millie’s retirement account... sounds like a 5 year revision.

As if there wasn’t enough evidence that shareholders were going to get steamrolled... then comes that EXCO 8k.  Oh My Gawd.  When conflicts of interests are disclosed to this degree, it might as well be a license to steal!

Its starting to look to me like the end is near.  The thing is literally a house of cards, alive only due to luck that its managed to stay beneath the radar under the radar this long.  Although that may have changed as of yesterday,
Harbinger Group's Sum-of-Parts Does Not Add Up seekingalpha.com

I will find some time to write more perhaps this weekend, in the meantime here are some charts and pictures you might find interesting.  There is so much here as far as danger it makes me laugh.

Spectrum Brands is a joke.  It doesn't manufacturer, doesn't own its licenses, it essentially just acts a middle man between the Chinese factory and Walmart.  Doubt those are very fat margins....

1. Substantially all of our rechargeable batteries and chargers, portable lighting products, hair care and other personal care products and our electric shaving and grooming products and small appliances are manufactured by third party suppliers that are primarily located in the Asia/Pacific region. We maintain ownership of most of the tooling and molds used by our suppliers.  http://secfilings.nasdaq.com/edgar_conv_html%2f2011%2f12%2f08%2f0001193125-11-334790.html#FIS_BUSINESS

Its all about creating something out of nothing.
For example, Spectrum Brands holds license/trademark rights as assets, which when you import the majority of the goods you sell, its kinda all you have, right?  But here is another company, publicly listed too!
http://www.amap.co.za/

Click the link, the US and Germany Varta's are different companies, infact the German ones was publicly traded.  
http://www.amap.co.za/

They have been playing these games for years.  Read this Wikipedia summery.

In October 2007, Salton sold its entire time products business, including the Westclox and Ingraham trademarks, to NYL Holdings LLC.[4]

In December 2007, Salton merged with another small household appliance business, Applica Incorporated, which owned the LitterMaid brand and a license to the Black and Decker brand for home appliances. Applica then became a wholly owned subsidiary of Salton, Inc. In December 2009, the combined company (Salton, Inc.) changed its name to Russell Hobbs, Inc. [5] A company with the name Salton (1985), aka Salton Canada, continues as an independent entity in Canada as an importer (from China) of small appliances. The connection with the original US company is not clear. The web domain www.salton.com is owned by the Canada-based company and information is on their web site. Most of their products are sold at Canadian Tire and are frequently on sale.

Spectrum Brands bought Russell Hobbs in 2010, all its products are manufactured in China[6].

http://en.wikipedia.org/wiki/Salton_Inc.

Curious why this says Living Brands when they claim to do sails in  Australia.

©2012 Home of Living Brands, All Rights Reserved
http://www.russellhobbs.co.za/


There are two EXCO Resources, one in Australia and one in the US.  Wilbur Ross is on the board of Directors of the EXCO in the US and I seem to find Falcone and Ross connecting often, but the lack of disclosure as to who the JV's parent is seems fishy.  I need to look into this more, someone is making bids for ASX at the same time, which I find odd too.

• Exco Resources Ltd (ASX: EXS) is a mining and exploration company that has been listed on the ASX since 1998. http://www.excoresources.com.au/

• EXCO Resources, Inc., a Texas corporation incorporated in October 1955, is an independent oil and natural gas company engaged in the exploration, exploitation, development and production of onshore oil and natural gas properties in East Texas, North Louisiana, Appalachia and the Permian.http://www.excoresources.com/  

Just want to point out, Wilber Ross purchased this entity from Zapata Corp (which is now Harbinger Group Inc.)
Safety Components International

On December 2, 2005, Zapata Corp. Chairman, Avie Glazer, announced the sale of 4,162,394 shares, 77.3%, of Safety Components International to Ross for $51.2 million. Safety Components, an independent manufacturer of air bag fabrics and cushions, is headquartered in Greenville, South Carolina and has plants located in North America, Europe, China and South Africa.[10]

Here are some funny charts I got from google trends which don't support the companies stated sales numbers.  

I HAD A FEELING WHAT THIS WOULD BE BEFORE I EVEN SAW IT.  BY ITSELF NO BIG DEAL, BUT THE COMPANY IS LOADED WITH ISSUES.

MORE OF THE SAME

NOW THIS IS INTERESTING, BECAUSE THERE IS ANOTHER COMPANY THAT SELLS UNDER ALL THE SPECTRUM BRANDS NAMES, IN SOUTH AFRICA.  (WILL GET INTO THIS ALL LATER.)

Found this yesterday.  When I draw out a relationship map, Falcone, Wilbur Ross, and Carl Icahn seem to connect quite alot and its more apparent when you see it overseas in an equity that doesn't trade in the states.  

[Federal Register Volume 77, Number 224 (Tuesday, November 20, 2012)]

Granting of Request for Early Termination of the Waiting Period 
Under the Premerger Notification Rules

Harbinger Group Inc.; Stanley
Black & Decker, Inc.;
Harbinger Group Inc.

Ocwen Financial Corporation;
WLR Recovery Fund IV, L.P.;
Ocwen Financial Corporation.
WLR Recovery Fund IV, L.P.;
Ocwen Financial Corporation;
WLR Recovery Fund IV, L.P.

http://www.gpo.gov/fdsys/pkg/FR-2012-11-20/html/2012-27838.htm