12/22/2010
I researched this as part of due diligence after placing my order for Markel possibly as an additional order . While I knew Markel was a company I really wanted to be part of, AGO & RNR came up as possible alternatives and I've generally had good luck with companies I come up with as possible alternatives.
This is a financial insurance company. Oooo scary! It's primary source (85%) of income is similar to PMI but with financial instruments such as Bonds, where they insure against a failure to pay principal and interest when due and similar credit events. Their exposure to actual PMI is 1% of their business. The other 14% is reinsurance, where they insure someone who is insuring someone else. That sounds really safe.
Price at evaluation: 17.89
Valuation Ratios
Price/Earnings (TTM) . . . . . . . 3.73x
Price/Sales (TTM) . . . . . . . . . . 1.78x
Price/Book (MRQ) . . . . . . . . . . 0.82x
Price/Cash Flow (TTM) . . . . . . Negative
Held By Institutions (MRQ) . . . 95.39%
Analysis
Benjamim . . . . . 3/5
Davison . . . . . . 3/5: $20 target
Thomas. . . . . . .3/5: 17.86 Average
Marcel. . . . . . . . 2.8 from 1: Hold shorts, no new shorts, do not buy.
Saxon . . . . . . . . 3.3
Vickers . . . . . . . . . . . . . . . . . Insiders buying around $15
While reading about this company I began to wonder how it came to be on my radar and then I realized it was because it had increased it's income by "616.3%" since last year, or in easier to understand terms it went from earning -$35 million to $180.9 million. Honestly I question it's solvency. Plus it's not in the low competition side of insurance, it's in the very competitive side of insurance where market forces force companies to pay out slightly more than intake premiums. And if you've read my other insurance company write ups, I hate that.
Listen, I didn't even read nearly as much on this one as I usually do, it just sounds so bad I want nothing to do with it. If you can pick it up for less than $15 AND you can think of 3 other REALLY GOOD reasons to buy it you should move on.
I researched this as part of due diligence after placing my order for Markel possibly as an additional order . While I knew Markel was a company I really wanted to be part of, AGO & RNR came up as possible alternatives and I've generally had good luck with companies I come up with as possible alternatives.
This is a financial insurance company. Oooo scary! It's primary source (85%) of income is similar to PMI but with financial instruments such as Bonds, where they insure against a failure to pay principal and interest when due and similar credit events. Their exposure to actual PMI is 1% of their business. The other 14% is reinsurance, where they insure someone who is insuring someone else. That sounds really safe.
Price at evaluation: 17.89
Valuation Ratios
Price/Earnings (TTM) . . . . . . . 3.73x
Price/Sales (TTM) . . . . . . . . . . 1.78x
Price/Book (MRQ) . . . . . . . . . . 0.82x
Price/Cash Flow (TTM) . . . . . . Negative
Held By Institutions (MRQ) . . . 95.39%
Analysis
Benjamim . . . . . 3/5
Davison . . . . . . 3/5: $20 target
Thomas. . . . . . .3/5: 17.86 Average
Marcel. . . . . . . . 2.8 from 1: Hold shorts, no new shorts, do not buy.
Saxon . . . . . . . . 3.3
Vickers . . . . . . . . . . . . . . . . . Insiders buying around $15
While reading about this company I began to wonder how it came to be on my radar and then I realized it was because it had increased it's income by "616.3%" since last year, or in easier to understand terms it went from earning -$35 million to $180.9 million. Honestly I question it's solvency. Plus it's not in the low competition side of insurance, it's in the very competitive side of insurance where market forces force companies to pay out slightly more than intake premiums. And if you've read my other insurance company write ups, I hate that.
Listen, I didn't even read nearly as much on this one as I usually do, it just sounds so bad I want nothing to do with it. If you can pick it up for less than $15 AND you can think of 3 other REALLY GOOD reasons to buy it you should move on.
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