Silicon Investor (SI) -- The First Internet Community

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.

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

To: Junglekings who wrote (28088)	9/17/2007 2:36:19 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78744

For me, NWLIA was a buy in late 2002 when stock dropped on no particular reason that I remember. I'm still holding those shares. ANAT too. My story: Buy under bv, wait to sell above bv. Sometimes this works. Sometimes it does not. CGI is the dominant auto insurer in Massachusetts. I've held a position for many years, have sold it out recently. SAFT was a 2nd or 3rd in auto in Mass., not is well managed (imo) as CGI was (CGI also the AAA Club choice). Apparently SAFT was attractive for their managers' expertise in managing SAFT's float (junior Buffetts). Two things have happened: The hot-shot managers don't seem to be getting press lately, don't seem to be doing so well or have become much more conservative. Significantly, the Mass. auto market is opening up to competition as state insurance rules are changing, and this has or will affect the earnings of the locals - CGI, SAFT. This my understanding of the situation anyway. I sold both, but reentered SAFT only because stock dropped below stated bv. One that's below stated bv that hasn't worked for me is CNO. It's dropped, and I've added more recently. finance.yahoo.com Others that might be looked at are ORI (p/bk =.94) with its very excellent record of increasing dividends, and the GE spinoff GNW (p/bk =1.01 now). I have shares of GNW and an exploratory few shares of ORI. I've been looking at PL this weekend: I find its p/bk @1.23 relatively low (relative to its history), but not quite so low as to hook me in. While this method is simple - simplistic - for buying/selling insurance stocks, it's not of course the only or maybe even best way to evaluate such stocks. I'm attracted to low p/e insurance stocks: I have ZNT for example. I started a small buy of BER on Friday. AFG's had a history of insider buying that's eventually resulted in a stock price rise: After seeing recent insider buys at AFG, I too have added to my position, hoping history repeats. finance.yahoo.com All jmo, and I've been wrong many, many times...especially about insurance stocks.

To: Junglekings who wrote (28088)	9/17/2007 10:11:18 AM
From: Madharry	Read Replies (1) \| Respond to of 78744

my first entre into banking- a starter position in IRE. 7x earnings and 6%+ yield. perhaps lines of people waiting to withdraw funds in uk had some impact.

To: Junglekings who wrote (28088)	9/17/2007 11:55:28 AM
From: MCsweet	Read Replies (2) \| Respond to of 78744

Insurers, Junglekings et al. SUAI, SAFT, NAHC all look interesting to me. NAHC is in a niche market and has an shaky history, so I have been buying/selling that one at much lower price-to-book ratios than the others. SAFT seems better managed to me (with a nice buyback and yield), so I would buy and sell it at a premium to the others. I am concerned about exposure to Alt-A and subprime paper (though these companies mostly claim low exposure to subprime) and increasing competition. However, I have tended to do well buying sound and profitable financial companies near or below book values. I must admit however that I wish I were better versed in the insurance business. By the way, PTA is another possibility for the strong of heart. They were delisted due to delays in SEC financial filings but are trading well below book and hopefully will be relisted. Their is definitely hair on that one, though. MC