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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (12765)7/15/2001 4:47:55 PM
From: Tommaso  Read Replies (2) of 78515
 
A quick perusal of your Yahoo list of insurance stocks shows a great deal of insider buying for most of them, though sometimes the amounts bought are not very large.

With the example of many of these companies, following demutualization, it appears that the life insurance business on average has a lot of assets that have not been valued highly enough.

At some point there could be a series of acquisitions or mergers now that they are stock companies, much as banks have been merging and acquiring one another.

Because I think that the general stock markets are badly overvalued, along with the dollar itself, I am worried that the stock prices of insurance companies might take a while to benefit from these circumstances. Having been able to buy Royal Dutch Petroleum in 1974 at a P/E of 3 and a high yield, I know that the best companies can be terribly undervalued in a serious market decline.
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