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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (48025)5/23/2012 11:30:32 PM
From: Spekulatius  Read Replies (2) of 78702
 
MET @ 30.2$ - looks like I got some more MET today too. I like their plans to increase ROE from ~10% to ~13% in 2016. If that works, the stock should trade at a premium to the book value at that time. Assuming it just trades at book in 2016 and that book value keeps growing 8%, MET would be roughly a double in 2016 and the PE would still be only ~7.7x.

None of the above assumption is overly optimistic and 8% book value growth is easy to beat, if they can buy back stock below book. Big picture talk while the price of shares goes up and down (mostly down) with the news flow from Europe, notwithstanding the fact that MET does not even have much exposure to PIG debt.

investor.metlife.com
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