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

To: Jurgis Bekepuris who wrote (49961)	11/4/2012 2:56:59 PM
From: Spekulatius	Respond to of 78748

>>MHLD - Yes, they advertise their avoidance of cat risk, so it would be strange if they had huge cat losses. However, as you can see from their presentation (slide 4), they are paying a price for the cat avoidance. They have nice and flat combined ratio that is lower than other cos when cats occur but it is quite higher than other cos when cats don't occur. Overall it's not clear for me from the chart that their combined ratio is better than other cos looking long term.<< I think you pretty much hit the nail on the head with respect to MHLD. I also think the biggest knock on MHLD is their limited operating history. I would not go overweight this stock mostly for this reason but for a small/medium size bet, the risk/reward looks quite good to me, especially when buying in a selloff that most likely is unjustified.