Gulo, regarding SNFCA, it looks most of its revenue gain is from mortgage financing and associated fees. If, so then I'd expect the p/e to be similarly low as others in that business, and maybe lower than the p/e I'd expect from specialty insurers. The specialty insurance apparently has to do with their mortuary/cemetery business which they fund from the cash flows of their mortgage financing/fees.
As you say, the p/e is low, and one needs to understand why. I can't easily see the reason, and based on what on what I do see (p/book, unusually high roe & roa now compared to past years), I'll pass on this one unless someone here can offer a compelling reason to buy.
This jmo, and I've been wrong many, many times.
Paul Senior |
