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

To: E_K_S who wrote (55325)	5/17/2015 3:29:17 AM
From: Mattyice	Respond to of 78644

I also own Snfca thanks to you and continue to do so - really like the direction they are going. My eyes are starting to move more and more towards small caps, it's only place I feel I can be assured there is value and safety .. Which whatever that is. I'm hoping this is not out of sheer boredom. Mattyice

To: E_K_S who wrote (55325)	4/24/2016 5:11:58 PM
From: E_K_S	1 Recommendation Recommended By CusterInvestor Read Replies (1) \| Respond to of 78644

Security National Financial Corp. (SNFCA) - doubled up on small position @ $4.93/share SNFCA is a small cap headquartered in Utah and engages in life insurance, cemetery/mortuary, and mortgage loan businesses. I started buying this one in 2014 at $4.65/share and have been following the company for over two years. The company has been building BV which is now at $8.00/share. In 2012 they were hurt by some bad loans in their mortgage division, have settled complaints from FNMA and now four years latter have really cleaned up their balance sheet. In May 2015, I sold off 50% of my shares on the huge run up from a great Q1 earnings. As of 9/2015 trailing 12 month EPS was $0.95/share reflecting a PE of 5.25. The company pays a 5% stock dividend every December. Their GN valuation in $13.07/share. The story gets better. The quality of their earnings is much better and more stable and predictable. WHY? 1) The company is now servicing the loans they originate. They have built up over $1.8 billion of mortgage loan servicing rights valued on the balance sheet at 12.6 million (about $1.03/share) . This provides the company a predictable revenue stream that they did not have in 2014. as of 4/11/2016 Security National Mortgage Surpasses $2 Billion in Mortgage Servicing Rights 2) They completed the construction of their 282 multi-family award winning Dry Creek at East Village development. As of the last conference call it was 80% occupied. This is another predictable income stream (NOTE: I was one of 11 on the conference call listening; so company is not followed much and stock is thinly traded except on/after earnings) 3) The company is expanding their corporate office footprint in Murray, Utah allowing them to consolidate their business operations (cemetery/mortuary/life insurance/mortgage) into one building and also have additional office space to lease. SG&A s/d drop and additional income from leased space. A word of caution is they also do construction loans. These are the riskiest as they hold them in their portfolio and do not sell them. During the last real estate down cycle in 2007/2008 they had to write off many of these non-performing loans in 2009-2011. That drove the stock below $2.00/share range thru 2009-2011. Earnings are to be released in the 2nd week of May. I anticipate stock will move higher once the market sees their EPS and FCF for the quarter. The stock is selling 62% under it's Graham valuation. My strategy is to sell 50% of my shares after earnings as the stock typically will trade 10x their ADV so it is easy to sell at the ask. I will be looking to see if their multi-family building is over 90% leased and if management provides a current cap rate and/or plans to hold and or sell. There is no Foreign market risk and customers use their services from birth to death w/ most of the revenue generated w/i Utah. EKS