New research by FBR dated 3/31:
I have not yet had time to carefully read the report. It is quite lengthy, and is a thorough analysis. One reason I like this company is because of the business model and that the company as a whole is growing nicely. I think that is thoroughly explained in the report.
Target is raised to 42. IMO, this analyst has been, and is, fairly conservative.
research.fbr.com
The non-VC businesses are discussed and given an independent valuation target of around $15.00 per share.
This does not include anything from VC including the current private equity $2.80 per share, and the public equity, say another $5.00 per share. So, using these numbers you would get $22.80 per share with no multiple on the private equity. That is, with all private equity investments at cost, no IPO's (even if an IPO traded at the offering price, LDP still has a gain).
One other interesting note about the report is that LDP is trading at a BV multiple that is LESS THAN other comparable pure insurance companies. That's even with its ROE of 45%, its growth, its track record, and its considerable stable of what most consider to be very good private equity.
Hey, I thought value stock investing was back in vogue. Maybe Heartland Value Fund will be buying more LDP again.
Where's the Tiger Fund when you need it? |
