Vesta Insurance Group (NYSE: VTA) 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.

Non-Tech : Vesta Insurance Group (NYSE: VTA)

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext

To: Tim Gardner who wrote ()	6/2/1998 12:29:00 PM
From: Tim Gardner	Read Replies (2) of 16

With all the turmoil surrounding this stock over the past two days I decided to start a thread. Some analysis of the company: Book Value: $20.70 per share Earnings: $3.37 Cash per share: $2.60 Shares Outstanding: 18.46 million Float: 9.2 million Institutional Ownership: 91% The stock dropped today from $52 a share to around the mid $26 level, an extreme overreaction in my opinion. Based on what I see from the company I decided to take a long position this morning. This tremendous drop occurred due to an accounting irregularity over the past two quarters. The irregularity will result in a correction of approximately 15 million to the books of the company. If this 15 million were to be taken away from the company's earnings it would result in a difference of approximately .83 to the trailing years earnings, or a drop from $3.37 to $2.54. The company's growth prospects remain unchanged and this will have no impact to the company's financial stability. So why the big sell off? At it's current price VTA is selling at only approximately 1.3 times book value and at only 10 times trailing earnings after a correction is made. IMHO there is no way this stock can stay at these levels. It is now extremely undervalued and with no impact on future growth it is my expectation that this stock will be back to at least the $40 level within a few weeks.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext