BAK - Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : BAK - Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Spekulatius	7/8/2012 1:18:07 PM
	1 Recommendation Read Replies (1) of 3249

WLP - anybody likes this health insurers.What got my attention is that they reduced the sharecount almost by 50% since 2005 through buybacks, without increasing balance sheet leverage. They kept buying through 2008/2009. FCF is almost equal to earnings, so with a PE of ~8, these buybacks are very accreditive. I am not sure about the impact of the health care law but i have a hard time seeing them go under. even if they don't grow at all, if they keep up the current rate of stock buybacks, the intrinsic value should compound in the low double digits. Plus now, they pay a cash dividend, so they appeal to more investors. Any thoughts welcome -i don't own this yet but I am close to making a first buy.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next