HMN -- A poor man's GEICO? Message Board

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Non-Tech : HMN -- A poor man's GEICO?

HMN 45.18

-2.2%

Jan 2 9:30 AM EST

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To: Duker who wrote (8)	3/24/1999 3:39:00 PM
From: Duker	Read Replies (1) of 72

Have been busy buying as much HMN as I can here. It is really difficult for me to believe that this company is trading at these prices. One an absolute multiple basis, it is ridiculous. On a relative multiple basis it is just plain stupid. For 13.5+% EPS growth, you are paying 10 x's 99 Operating Earnings? 9 x's 2000 Operating Earnings? The latter is an 11% yield ... for a company as consistently profitable ... with great management (though they are poor dressers) ... a combined ratio that is 10% better than the industry average without sacrificing profits ... with an ROE of roughly 17% ... and they use the cash flow to buy back shares (thereby purchasing a 17% return) .... I have no idea why someone doesn't plop down a $40 offer tomorrow. --Duker ... just talkin' to himself

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