We posted the transcript of Eisman’s speech earlier, but to get an idea of what happened on the call, you really have to listen to it.
He basically tells Frazier that unless he changes course, he’ll have him fired.
So we’ve embedded it below.
As you’ll hear, first, Eisman rips into the company. Take particular note around 00:30, when he says:
Genworth is selling at a steep discount to both MGIC and PMI, the pure-play MIs. This is probably because this company does not meet its cost of capital in any of its businesses.
And at 00:58, when he says:
To keep going down the current road seems to me a complete waste of time.
But if you listen to no other part of this call, listen to Eisman at 01:40, when you can tell from his voice that he gets really heated. It’s also the first time Eisman doesn’t seem to be reading from something he’s prepared ahead of time.
– And one other thing, at the beginning of this conference call Mr. Fraizer said that they might do bolt-on acquisitions.
Do not do that. Your stock is selling at less than 40% of book value. You do a bolt-on acquisitions – and I will wage a proxy battle immediately to throw you out of here.
Now, I will like some response.
Then Gensworth’s CEO, Michael Fraizer, remains weirdly calm as he meekly addresses Eisman’s stern, aggressive questions:
…A clear performance trend, you can also see the path to not only earning your cost of capital in international, but it’s, in fact, exceeding the net cost of capital… I think you can see that in the numbers.
And then Eisman interrupts him.
Actually – I can’t. But go ahead.
Did you hear that tone? The Eisman household must be terrifying when Daddy’s upset.
UPDATE: Embedding has been disabled. Click here to listen on Youtube.
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