SCT -- Contrarian Alert!
Scottish Re Group Limited (NASDAQ SCT @$6.10) is a holding company engaged in the reinsurance of life insurance, annuities and annuity-type products through its operating subsidiaries. At an Oct. 25 meeting, the Scottish Re board named Paul Goldean, who had served as CEO on an interim basis since Aug. 1, president and CEO of the company, effective Oct. 26. If he stays with the company through a sale, Goldean would receive a guaranteed payout of $300,000 to go along with a $550,000 annual base salary. SCT has retained Goldman Sachs and Bear Stearns as advisors on strategic alternatives.
Market Cap (intraday): 431.03M
Forward P/E (fye 31-Dec-07): 5.14
Price/Sales (ttm): 0.21
Price/Book (mrq): 0.46
Book Value Per Share (mrq): 19.78
Operating Cash Flow (ttm): 1.28B
Levered Free Cash Flow (ttm): 3.52B
52-Week High (05-Dec-05)3: 25.99
52-Week Low (31-Jul-06)3: 2.95
Shares Short (as of 10-Oct-06): 2.89M
Short Ratio (as of 10-Oct-06): 6.2
Insiders' and institutional support:
Institutions net Shares Purchased (mrq) 10,885,200
% Change in Institutional Shares Held: 46.3%
Insiders recently purchased 1,012,663 shares ranging from $10 to $24 per share.
Capitulated Volume:
SCT traded 9,435,600 shares on Nov. 8 vs. a daily avg vol (3m): 1,177,300
shares.
Conclusion:
Value + insiders' and institutional support + capitulated volume = Timely contrarian investment with attractive risk/reward potential.
pcyhuang |
