Buying more PXT today.
finance.yahoo.com
Doesn't show up on a search, but I'm pretty sure I mentioned it here at least once before, in March or April.
Anyway, it's one of the worst of the reinsurers, imo. ROE fluctuates, earnings are there then disappear, and book value goes up and down. So the p/e - when there is one - is generally very low.
PXT (today's price: ~$19.75) is expected to earn about $4/sh. this year. I'll bet they make it: premiums are up all over, and profits this quarter are okay from what I can tell. I assume also there are only a normal number of catastrophes that need to have been reserved for and were.
The p/e would be 5 if PXT does make the $4/sh. However, the way I'm seeing it, that's only midway between a multiple of 4 and 6 where the stock has traded in some years where there have been earnings.
Assuming written premiums can stay at the current level, PXT might be able to put together a 2nd good year though, and as visibility gets closer to 2004, the stock might trade higher on the expected '04 earnings. I hope to see a multiple of 7 at some point. If so, I expect PXT trade at $28/sh.
jmo, and I've been wrong many, many times. |
