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

To: Paul Senior who wrote (24144)	6/19/2006 11:13:05 AM
From: schzammm	Read Replies (1) \| Respond to of 78742

Anyone following the insurance and reinsurance companies. The sector has been under pressure since last year hurricanes due to huge losses. However large losses result in increased rates. Are these companies value traps. Could be as many of the companies are selling at or below book value and sport pe ratios below 10 on forward earnings. Seems from this vantage point that a lot of the potential risk is in the stocks all ready. I started a position in a couple today. AT $17.50 SCT is selling below book according to Yahoo with a forward PE under 6 and a PEG of 0.56. I guess it is a bet against two consecutive years of record hurricane losses. There a safer companies in the sector. Also picked up some RE and AXS. Peace