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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Suma who wrote (21506)	6/20/2005 11:21:43 AM
From: E_K_S	Read Replies (1) \| Respond to of 78666

Hi Suma - I have not followed LNC (Lincoln National Corp ). They offer multiple insurance and investment management products and services primarily in the United States and the United Kingdom. LNC is quite profitable and has excellent free flow cash flow from operations ($6.50/share annual). Their PE seems to be consistent with other financial stocks at 10.5 and they do pay a "qualified" 3% dividend. A similar company that you might want to look at is AIG which is about 20x larger in market cap and pays a much smaller divided. In fact, I think I like LNC better than AIG because of their larger dividend. LNC has significantly outperformed AIG and the S&P 500 over the last 5 years. finance.yahoo.com ======================================================== Perhaps there are some other "Value Investors" that can provide their opinion on LNC specifically and the insurance industry in general. I currently do not have any pure insurance company plays in my portfolio(s) and it might be something I may want to add. I do know that Warren Buffet made a substantial investment in General Re a few years ago (General Re is one of Berkshire Hathaway's biggest buys -- and worst investments). Here are some of the problems Buffet is having with his investment. From BusinessWeek Online JUNE 14, 2005 By Pallavi Gogoi Warren Buffett's Problem Child businessweek.com I guess the key again is "can management be trusted" and are there any past deals that may come back to sour the investment. Buffet is now finding this out with his big investment in General Re. EKS