Aflac, Inc. (NYSE:AFL)

CAPS Rating: 4 out of 5

A general business holding company and acts as a management company, overseeing the operations of its subsidiaries by providing management services and making capital available. The company's principal business is supplemental health and life insurance.

Recs

14
Player Avatar TMFLegendPhoenix (32.42) Submitted: 8/13/2011 11:21:10 AM : Outperform Start Price: $40.82 AFL Score: -11.95

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.

Report this Post 5 Replies
Member Avatar ROEoutshinesGOLD (99.06) Submitted: 8/30/2011 2:00:20 PM
Recs: 0

Thank you for your pitch. I enjoyed reading it.

Andre.

Member Avatar StarWitchDoctor (99.43) Submitted: 9/21/2011 8:03:27 AM
Recs: 0

Yes, all this and the stock tends to be annually cyclic as well, last years low mark was sept 12 and this year low water mark (daily) sept 12.

I am not a chartist however I believe this one takes a rest in the summer.

I have sold in september before but this year i hold.

A good read my friend.

Regards,
StarWitchDoctor.

Member Avatar TMFLegendPhoenix (32.42) Submitted: 9/21/2011 1:29:50 PM
Recs: 0

I didn't spend a ton of time studying their charts, but now that you mention it, I notice a pattern through the last couple of years. Now I'll have to dig into the news and reports and see if there's something to this summer time malaise. Thank you for pointing this out, StarWitchDoctor.

Member Avatar IlanBigfoot (86.87) Submitted: 10/13/2011 7:38:17 AM
Recs: 0

Summer is hurricane weather?

Member Avatar IlanBigfoot (86.87) Submitted: 10/13/2011 7:38:27 AM
Recs: 0

Summer is hurricane weather?

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