Assurant, Inc. (NYSE:AIZ)
Focuses on building & maintaining a portfolio of insurance businesses, leveraging a set of core capabilities, identifying & adapting to evolving market needs & centralizing certain key functions in the Corporate segment to achieve economies of scale.
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Recs
low forward projected pe
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insider ownership + growth rate
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This is one of my STARZ.
Here is the thought process on this STAR:
a) Divided rate over Zero
b) 3 Year Beta between -5 & +3
c) 15% + Insider ownership
d) No greater than -50% Growth rate for the last 3 years (tought= last couple of years so goo that insiders are still owning the stocks)
e) Current CAPS rating between 3 Stars & 5 Stars
Open to all Industries and Sectors screened this down to just 250 stocks. I like round numbers. 12 of them I already own through other screening tools. I tend to be somewhat conservative but looking for 3 things at this point in my investing:
1. Stability & Strength
2. Yield and Modest Growth
3. Strong Position within a sector regardless of whether the entire sector is strong or not. Each sector has to perform to some degree for the whole world economy to function. I am looking for 5 or more years down the road, ROI, and Growth.
Not looking for rockets, just stars. This is a Star!!
Recs
A promising company with a history of profitability.
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AIZ is a specialty insurance company trading at about .95 to price/tangible book with an owner earnings rate of about 12-14%.
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Maintaining a good price despite the market run up. Insurance business should recover as things get better...but the financial aspect of the business will certainly improve, and that will help.
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Strong financials
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low relative PE, good star & 2010 earnings. Bottom fishing week of 2/8
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Great business with cash. Provides a dividend with solid fundamentals. A PE of 6. Are you kidding me. Definitely associated with its peers and is lost in the crowd.
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Low low PE - misunderstood stock.
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Undervalued niche insurance provider. Market will gradually recognize the value as money looks for opportunities as the economy recovers over the next two years. This will drive AIZ performance 20 to 40% higher than the overall S&P 500 over two to four year time frame
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HT Captain5Bagger
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Assurant has produced very strong and stable underwriting profits and has a conservative, fixed-income portfolio of investments. Combined, these two growth engines have produced returns on equity of over 15%. In the past, the market has rewarded this growth with a multiple to book of about 1.75x. Today, shares closed just shy of $32 per share, while book value as of last quarter was $37 per share. If Assurant were priced at their historical 1.75x book, they would be valued at about $65 per share. A double from here.
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Baloney.
www.sec.gov/comments/s7-08-09/s70809-3984.pdf
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Lots of cash and a good P/E
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Wish I got to it earlier. May take a few lumps in the meantime if the bears have their way. But should be solid longterm
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Market price is at a large discount to analyst estimates
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More STIMULUS? More financials downside.
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Specialty insurance play getting crushed by natural disasters - hurricanes- and Wall Street disasters - impaired investments. Survivor with almost $500 million net cash should base soon around $25; technically about 10% oversold in the very near term
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Assurant is, I believe, one of the best-run insurance companies in the country. Management focuses on niches where it can enjoy sustainable competitive advantages and pricing power (consumer warranties, healthcare for small businesses, etc.). Assurant is conservatively capitalized, and is actually on track to grow book value this year despite some investment losses. Book value will likely end 2008 around $34 to $35 per share. The stock, recently $40, is barely above that, even though historically it enjoys a multiple of about 1.75 times book value. Once the financial panic subsides, Assurant should still be standing strong, and the shares should recover.
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