ACE Limited (ACE)
The Company and its direct and indirect subsidiaries are a global property and casualty insurance and reinsurance organization, servicing the insurance needs of commercial and individual customers in more than 140 countries and jurisdictions.
Recs
Solid dividend payer/increaser. Undervalued.
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One of the best management teams in the business. Premiums written have gone up, pricing is firming in some lines of business and the company should take market share from weak firms. In the second quarter, profits rose year over year and book value increased about 2%. The dividend was just raised by 7%. The stock sells at book value and on a trailing PER of 10x. Going forward, the company is expected to earn $7.56 this year, putting the stock on a PER of 5.8x. It is quite reasonable to expect the stock to trade on at least 1.5x book value which equates to a a price of about $64 or a PER of 8.5 forward earnings. I think the stock could sell on 10x earnings putting it at $75. Thus we get a potential 50% to 70% return. The stock has really done nothing compared to others. I think we could get there in a year to two years.
Recs
the change in earnings over each of the last four quarters and the current quarter estimate shows strong acceleration in the quarterly growth rates, which should lead to a improvement in earnings growth.
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Property insurance will suffer as home values decrease
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In trouble nationwide
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Well secured, minimal life insurance, conservative investment strategy, global revenue source.
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not beat down as rest of sector and great p/e
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At this price it is a bargain!!! Low p/e and a ver very low payout will gave you satisfaction!!!!!!!!!
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This is a pure intrinsic value pick..
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Company expansion, more markets more products
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Found this company under the insurance tag. Sell all property insurance and casualty stocks, or see your portfolio bcome a casualty! Warren Buffett is negative on the sector and that's good enough for me. Financial sector s--t has to work iits way through the whole goose.
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Beaten down due to sub-prime fiasco but this company has limited exposure. One of the stronger players in an otherwise weak sector.
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buy and hold
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$67 here we come
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I love the fundamentals. Appears strong, good analyst and caps ratings, nothing to make me think this would underperform.
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insurance industry leader
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The P/E ratio is quite low for this sector and ACE has a distinct advantage in this sector due to its' domicle of Bermuda
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very smart management. excellent metrics
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I came up with ACE through a stock screen (good PE, PEG, growth est, and low debt). They are a Bermuda based insurer.
I have a price target of 69 based upon 07 being a bit worse than 06 and their PE
Recs
BETA<1, P/EG<1, P/E <10

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