I didn't see the article and do not understand the financial structure. Here is a quote from an article in the 12/9 WSJ:
"Mr. Muhlenkamp, who manages the Muhlenkamp Fund and other assets, likes Conseco Inc., a Carmel, Ind., insurance and financial-services company. The company's return on equity is 15% and earnings are expected to grow at a 15% annual rate, he says. However, at $19.50, down 68.75 cents, late yesterday on the Big Board, the stock is trading at less than seven times next year's projected earnings, he says. "It's cheap," he says."
IMO, it's a complex financial service/insurance company that has successfully grown through acquisition and internal growth. At the behest of Wall Street, CNC has adopted more conservative accounting measures, strengthened the financial structure with the recent injection of capital and reduced its dividend to strengthen the balance sheet and help it up its debt ratings. |
