thatsnotluck re PCN -
thanks for your input. I think you said it better than I did. FWIW, I looked up PNC history and while they have a long operating history, they demutualized in 2001 and 17.5$/share. At that point, they had high ratings (AA S&P, A from Best ratings) but I think the sows of destruction were already there, when they went public. In the 10 hears they were public, they never had a consistent operating history and yet you are correct that management rewarded themselves amply. Maybe the new management is better but it seems that in the past, the changes were more like passing the baton from the number1 to the old number 2.
It remains to be seen if their balance sheet is too damaged to recover (would any body with a little bit of knowledge really get into a long term insurance contract with a company with crappy ratings while there is so much competition with good ratings out there?).
I think if you want to invest in a crappy insurance company, HIG is the way to go :-) ; at least they are sound to some extend, have decent ratings and a possible catalyst. Maybe PLFE (which I understand has management issues as well) is worth a look too, especially at a pullback. I own NWLI (largest position), MET and some HIG in this sector. |
