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Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: zyx1996 who wrote (4003)	2/22/2001 1:49:57 PM
From: zyx1996	Respond to of 4155

Lehman Brothers downgrade CNC because CNC earning is priced in the stock. I am not sure about this so called priced in. Based on what criteria the stock is priced in the earnings? Conseco, Inc(CNC) 3 - Market Perform Turnaround? Absolutely. But its Priced into the Stock (A) Price: $14.18 52 Wk Ra: $19 - 5 Mkt Cap: $4.7B FY: 12/31 •Believing that much of the improvement in Consecos earnings over the next year has already been priced into the stock, we are lowering our rating on Conseco to a 3 Market Perform from 2 Buy. Theres no disputing that Conseco under Gary Wendt, the former chairman of G.E. Capital, has not only avoided disaster but begun a credible turnaround. Mr. Wendt has made all the right moves: selling hobby businesses such as Consecos interests in riverboat gambling, paying down debt, cutting expenses, shoring up the balance sheet by increasing reserves, bringing in new management, and restoring Consecos insurance-company ratings. Making it all the more remarkable, Mr. Wendt has kept the two Conseco businesses insurance and consumer finance largely intact throughout this entire tumultuous period. In other words, in a period of enormous change for the Conseco companies, the new CEO has managed to keep both businesses going.