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Strategies & Market Trends : Value Investing
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To: E_K_S who wrote (57792)10/10/2016 11:45:19 PM
From: E_K_S  Read Replies (1) of 78714
 
Security National Financial Corp. (SNFCA) - sold 45% of shares @ $6.05/share

This undervalued small cap still has yet to achieve my full value target price of $ 8.50/share (the stated BV) but I hit my two year holding period and decided to book my long term gain on 45% of my shares. This is an example of a non liquid small/micro cap that only moves w/ volume.

Today there was 8x ADV and provided me an exit for my over sized value position (avg price at $4.50/share). I will hold my remaining shares for a move to $7.50/share or higher to peel off another 50% if/when their next quarterly report confirms that their 5 PE is sustainable and large value buyers move the stock higher.

SNFCA does pay an annual 5% stock dividend every January so holding shares while waiting for the next quarterly/annual report could be why we may be seeing this large buying before earnings.

The company recently completed a small acquisition (of another insurance company) and does own some undervalued real estate assets (cemetery land assets and multi family apartments). However, there were some issues w/ their mortgage loan origination division in 2009 which was recently settled in an out of court agreement which will be charged against next quarters earnings. I think the stock was priced at a discount pending the resolution of this one issue so now we may/could see full value return.

Investors may get a better picture of the new stated BV after the next quarterly report. FWIW, BV has been increasing every quarter since I started buying shares in 9/2014.

EKS
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