Allen Furlan: re: reason for PFG drop. Allen, I have no idea why the drop has occurred or why it seems to be continuing. Some theories are on Yahoo msg board, but just they are speculation. I'm betting that at this point, if management hasn't come forward with an explanation, then they don't know either. Perhaps stock drop has to do with lack of buyers at the asking price for the division they are trying to sell.
There's been no insider selling this year that I see. I see insider buys (mostly) last year at $30+ level (vs. stock price today @ $13).
I don't know why PFG needs or would accept a cash infusion. They say they are trying to max. shareholder value. But if stock decline is a consequence of a major investor coming in, then mgmt. goofed. Consortium of Swiss Re,Credit Suisse, and Securitas Capital I believe is the group buying $75M stock at bv. Have not done my homework on them-- they sound safe,stolid, careful--Swiss! - patient maybe in getting a return on their investment. (I hope they aren't expecting to wait decades though to see results -g-). Since I calculate (and I am not competent in making these bv calculations) bv at maybe $18-20 or more, and here at stock price of 13 (actually about 13.5/8+ for me), I bet that I should be able to get an even better ROI than Swiss Re (or the insiders who bought last year).
Have no idea whether Ed McMahon is a spokesman for PFG.
If stock continues to drop to retest its lows of past few days with no co. info. forthcoming, I intend to buy more and hope that combo of no news + falling stock price does not scare me out. If bad news comes out, I'll have to evaluate what effect it might have on future of co. Profitable insurance co. (over 1000 emp. with market cap of more than 340M) selling this far below bv, with another insurance co.or two willing to come in at bv to the tune of $75M--- gee that's just too tempting for me. Any ideas/opinions you (or anyone else) has (have )re PFG, glad to hear them here.
Not trying to tout the stock. I've been wrong many, many times before. Heck, wrong many, many times before, during, and after -g-. For me though, this stock may be (maybe) worth a full position in a long-term taxable (and diversified -g-) portfolio. Paul. |
