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TMFLegendPhoenix (< 20)

If you strike me down, I shall become more powerful than you could possibly imagine.

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August 11, 2011 – Comments (1) | RELATED TICKERS: AFL

Aflac's stock has had a rough year and it's currently trading at a 52-week low.  The trajectory of Aflac's stock price is that of a company who may have disrespected their customers, disappointed their shareholders or got caught doing something illegal or financially dumb – but none of these are the case.  They have paid the claims of their policyholders affected by the disasters in Japan.  They continue to show their appreciation to investors in the form of a 3% dividend yield while maintaining very sustainable payout ratio of around 30%.  They paid a premium to sell their securities in risky European banks which tells me that they're looking out for their investors.  And despite their losses from the derisking, a rough economy and high unemployment, Aflac's earnings are still favorable.
Although the stock price may continue to drop for the short term, I feel the fundamentals of Aflac are strong and I can no longer resist the urge to buy at the current price.  My stock pick for this week is Aflac at roughly $36 / share. 

  I'll leave you with a portion of a conversation I once overheard:
- TK-421: "The reward will be... what?"
- TK-422: "Well, more wealth than you can imagine."
- TK-421: "I don't know, I can imagine quite a bit"

1 Comments – Post Your Own

#1) On August 11, 2011 at 9:04 AM, mm5525 (< 20) wrote:

May the force be with you on your pick. I would not touch a financial/insurer personally. I'll leave you with this quote to sum up how I feel about the financials... "You will never find a more wretched hive of scum and villiany. We must be cautious."

Good luck nonetheless. I just hope you don't find yourself in dentention block AA23.

 

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