As the Economy Recovers Zenith May Reach Peaks - ZNT
Zenith National Insurance Corp. - ZNT is a pure recovery play. The stock is depressed for 2 reasons: 1- As payrolls in the manufacturing sector contracted so did the underlining payroll insurance premiums and 2 - like all insurance companies they make money investing on the time spread between the time they collect premiums and the time they pay benefits.
When the economy recovers, the investment portfolios should increase in value and when new workers are hired premiums should increase.
There has been recent price action to the upside and BarChart has BUY signals on 12 of its 13 technical indicators. New high have been hit in 7 of the last 20 trading sessions including 4 of the last 5 trading sessions,
I call a BUY with a stop loss at 25.43
Jim Van Meerten share more investment opinions on his blog Financial Tides