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$30.06 -0.84 (-2.72%)
1/9/2009 4:02 PM

The Allstate Corp (ALL)

CAPS Rating:
****

The Company is engaged, principally in the United States, in the property-liability insurance, life insurance, retirement and investment product business. Its primary business is the sale of private passenger auto and homeowner's insurance.

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Avatar gameguru (< 20) Submitted: 11/08/06 3:29 PM : Outperform Start Price: $58.46 ALL Score: -12.94

Even near a 52-week high, this stock is selling just below enterprise value and is priced as though the company will never grow again. This stock could be providing as much as a 30-40% margin of safety (using an 11.3% discount rate and the lowered estimates from 2007 as first-year earnings). And it will pay you 2+% while you wait for it to rise to value.

Nearly 90% renewal rate on homeowner and auto policies. Combined ratio is at 83 for the last 9 months. Reducing exposure to hurricane losses, removing wind coverage from certain policies and withdrawing from certain markets.

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Avatar gameguru (< 20) Submitted: 4/08/08 11:51 PM

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ALL has put a hurting on me so far, but it currently appears on the following screen for fundamental values validated by community intelligence:
CAPS 4 or 5 Star Stocks, ROE > 15%, 3-Yr EPS Growth > 10%, P/E < 12, P/S < 2, P/B < 2, Div Yield > 2%

I recently finished reading the Berkshire annual report and noted that Buffett, from his perch overseeing Geico and General Re, believes that we're likely to see reduced profits in the insurance sector for the next few years, which tells me it will be prudent to watch this pick carefully.

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