Historical notes of Fremont General:
Dec 8, 1999 The Finova Group Inc. ,FNV, said on Wednesday it agreed to buy
Fremont Financial Corp., the commercial lending subsidiary of insurance
group Fremont General Corp. (NYSE:FMT - news), for $765 million in cash,
including debt. I bought at the open; this news was announced at 11:00 am. I got lucky
Dec 8, 1999 - Bought addl 400 shs @ 5 5/16. Here is a consistently profitable
company that has stood the up-and-downs of the casualty and property cycle that is
getting trashed in a down cycle. Nobody (but Carey) loves you when you're
down and out.
Nov 9, 1999 - FMT announces 3q99 earns.
FMT takes $60 mill charg related to workers comp, and $25 mill charg related to asbestos & environmental claims.
Also, rec'd $33 mill tax benefit, so charg is $52 mill after tax. States it bought in actuarial consultants to
vouch for new loss reserves. Stk falls from 8 9/16 to 7.
Oct 6, 1999 - Bought 300 shs @ 9 7/16 after comparing it to TW, MCY, ALL, AFLAC, LTR,
SAFC, and ORI. Chose FMT because of 1) large % of empe owners 2) diversification - owns a
profitable S&L 3) quickest growing revenues and 4) consistantly high ROE - just behind MCY.
This is an IRA trans. FMT has .32 yearly dividend.
Financed the purchase by selling shs of TW
Aug 27, 1999 - FMT employee benefit trust authorizes $50 mill shs repurchase to take advantage of low price.
Aug 24, 1999 - FMT states it will take $50 mill after tax charg related to workers comp and asbestos & environmental cl
claims. I wonder if the charg is related to UFN business that was acquired in Sep 98. Stock falls fr 16 13/16 to 8 3/4
on vol of 7 mill shs or 15 times avg day vol
Mar 23, 1999 - FMT S&L subsidiary issues $415 in a collaterized pool of 1st mortgages on residences
Mar 17, 1999 - FMT issues $425 mill of notes: $200 mill @7.7% due 2004 & $225 mill @ 7.875 due 2009
to repay FMT's bank line of credit
Dec 31, 1998 - The employee stk ownership plan (esop) holds 4.8 mill shs of FMT stock. This is bigtime
empe ownership and should keep the worker bees humming away (and FMT surviving the vissicitudes of bus. Cycle)
Dec 10, 1998 - FMT splits stk 2-for-1
Sep 1, 1998 - FMT completes the acquisition of Unicare, workers comp subsidiary, fr Wellpoint Health Networks
for $110 mill. UPN assets are $425 w/ $348 in securities. This was a competitor during my original analysis in 1991
Aug 1, 1998 - FMT completes the acquisition of Industrial Indemnity from XEROX for $365 mill; and pays off
a $79 mill debt owed to XEROX. This was a competitor during my original analysis in 1991.
Aug 1997 - Read the FMT annl rpt. This co. vision is to manage a} markets, b} customers,
c} technology, and people. Very impressive presentation
Dec 1996 - FMT issues 1.m shs of common stk for employee stock ownership program
Proudly notes employees own 33% of the outstanding stock of FMT
Dec 5, 1996 - FMT splits its stk 3-for-2.
June 15, 1995 - Co declares a 10% stock dividend
Feb 22, 1995 - Co acquires Casualty Insurance Co of Illinois fr Buckeye Union Ins for $250 mill
1993 - Co issues $373m of zero cpn LYONS; ea $1,000 bond is convertible in 19.287 sh of com stk
or when bond @ par & com stk pr approaches $51 the bonds will be converted.
Bonds issued at $372
1977 - Co issues stock via an IPO
1959 - Co starts writing workers compensation business in California |
