Cincinnati Financial Corp (CINF)

Strong commitment to dividends by the board. Large stock positions have appreciated since last quarter.

Good value. Solid dividend (kept dividend during recent downturn)

div

insurance & yield

Assuming the December 2008 earnings come out to 0, that is still annual EPS of $1.60. Using that number with the Graham formula, along with the current book value of $28,86, gives me a fair value of $32.23 -- so the current price of $22 gives me a margin of safety of 30%.

Granted, the current climate for financial companies is tough, but this seems to be a well-managed company. Time will tell if this is a wise choice.

High yield, low debt screen

full disclosure is due...

although my start price indicates $30 i actually bought back at $40...yeah i know...i'm a genius

(is there a way to input your actual purchase prices?)

CINF is an insurance company that is actually profitable from the sale of their policies, which is rare in the insurance industry. (most insurance companies make all of their profits off of the cash they invest that they hold in float) They have taken a big hit from flooding, tornados and weather issues in the Midwest and are going to take a loss this year on their underwriting. Like Berkshire Hathaway they invest their float in more risky investments to produce larger returns on the float. Which I find very attractive. CINF's investing strategy consists of stocks that provide large dividends and have potential for continuing growth. If you look at their investments over the long term the gains are very impressive. (check out there 10k) They have taken losses in the year due to heavy investmenting in the financial sector, mainly Fifth Third Bank, which has recently been hammered. It was a poor move to not sell some of these investments and cut their losses but then again many have made the same mistake. On a side note the CEO also sits on the board of Fifth Third Bank Corp. which is a tad bit fishy seeing as 27% of their stock holdings are in 5/3. Financials will inevitably bounce back within the next few years as will the rest of the market putting CINF's profits back in line with past performance. Cincinnati Financial Corp. is a solid company that has been around for 48 years and has strong experienced management. They have been increasing their dividend every year since the inception of the company. I believe the company is currently underpriced and a solid value buy in the $25 range.

Good, experienced insurer. Bad, stormy financial market. What do you expect?
P/E < 7. Earnings/equity ~ 14%. I will hold it.

I think they are going to start losing profits as insurance companies struggle with the mess lenders have left them. they may come up ahead in the long run, but for now i think they are going to continue falling.

A lot of bad, general sector, news is priced into this stock - but I believe this a good long term. If for nothing else at these prices would be a good target for acquisition.

This Insurance player is underpriced and has been hit overly hard through the credit crunch. We will see sentiment shift on this as it beats earnings expectations over the next year.

breakout

Cincinnati Financial Corp. (CINF) is an insurance conglomerate. Cheap price, solid financially, they'll probably outlive you and your kid. Or, you'll cash in when they merge.

Here's today's vitals that jump out at ya:

On Feb 8: 37.78
P/E (ttm): 8.22
Div & Yield: 1.56 (4.10%)
200-Day Moving Average: 40.54
Price/Book (mrq): 1.06
(info from Yahoo 2/10/08)

Hold my beer, watch this.

This stock looks good.

Good growth rate. Low Payout. good EPS growth.

Low P/E Low Beta. Positive cash flow.

This CAPS account is tracking the 200 highest yielding S&P stocks.

Solid balance sheet, good sector, good dividend, share price down 10-15% which makes it a good bargain now for long term holding, plus a stock buy back now makes sense for them, and me.

This stock has been good for my portfolio and has not dipped or underperformed. I am very happy holding onto this storck over 5 years.

buy and hold