The Progressive Corp (PGR)

falcon2382 (90.32) Submitted: 4/10/08 2:18 PM : Start Price: $17.00 PGR Score: 7.09

Okay... this is going to be a stretch. Apart from the fact that I like management at progressive and over the long term i dont think cars are going to disappear from the US landscape (and after seeing the effects a two week train-workers-union strike can have on Germany--I'd say thats a good thing), what seems quite interesting to me though is that although most people reduce driving when gas and oil prices go higher, and job losses and other recessionary effects reduce the weight of consumer pockets, I don't think many people take their cars off the road completely. This means they still need insurance. So in the end, I'd say you have the perfect recipe for the No. 1 car insurer in America to be able to sit back and collect monthly checks from its customers without having to dish out huge checks back since less traffic means less accidents and more cars parked in the garage (as opposed to parking expensive cars on the street during trips to the city) means less theft.

Let's see, what else, Progressive also happens to boast an 8 to 1 insider purchase to sales ratio during the past 5 months and currently has a 21 analyst average rating of hold--with current stock price action begging for some upgrades and smart money piling in on heavy volume at current prices as well. That basically means that something pretty catastrophic would have to happen to progressive itself (like a meteor hitting the headquarters or something) in order for the stock to break such support levels.

I guess I've made my opinion on this one pretty strong huh? Well, take it with a grain of salt

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