Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Spekulatius who wrote (40530)	12/11/2010 2:47:07 PM
From: Jurgis Bekepuris	of 78728

LPHI - I agree with your observations regarding regulatory risk and P/book. I also don't see any moat, except perhaps long experience in business + reputation (if it's positive). I don't see why insurance companies would not get into this business if it's so lucrative. Perhaps conflict of interest or unwillingness to appear shady? The company seems to be cheap in terms of E/EV, however the earnings have been on an upswing for last 2 years, so I wonder if this is sustainable. Especially since the revenues have not grown. I am afraid that this may be volatile business and if there's sparsity of policies to be bought cheap or competition develops, the earnings can dive down really fast. Regarding business, selling the policy for partial sum instead of letting it lapse and getting nothing might be positive ( finance.yahoo.com ). Sure, this is LPHI's press release, I don't know how much this is a good thing for average Joe. ;) (Personally, I don't carry life insurance and I think it's a bad investment, so I don't have experience with life insurance policies first hand).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next