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

To: Robohogs who wrote (46510)	2/8/2012 9:52:47 AM
From: Spekulatius	Respond to of 79085

>>HIG should be good. I have to say that I liked things more when both it and LNC were out of favor.<< Yes that would have been prescient, however then was then and now is now. I was following HIG somewhat and decided to take a position based on what I think it's worth under current circumstances. I also read though their last investors meeting transcripts (Dec 2011) and reconsidered my position that HIG is a dog. For one thing, they placed a significant part of their low ROA business which consumers 30% of their equity into runoff. This should free up capital sooner or later. They also own a wealth management business (mutual funds etc) that consumes very little capital. All this can be bought for 40% of book. There is going to be a DAC hit to book of ~3$/share and maybe a little more, but still. Unless capital markets become unglued this stock should go higher. Today, the stock actually follows my directions <g>.