21st Century Holding Co. (TCHC)

company trading near lows, p/e ratio at 4.77

Great p/b, great debt/equity (for an insurance co). Strong insider ownership.

Continued revenue growth with a nice dividend yield. Insurance is the business that keeps on giving with renewed policies and solid cash flow.

I feel like I'm starting an insurance mutual fund with all of my insurance picks lately, but this industry has some really good buys right now.

21st Century Holding Company is another solid company with good management selling at a good discount to the overall market at the moment. They have low debt, good cash flow good inside ownership, and nice margins all around.

If they manage to grow earnings a trifling 5% a year, these shares should still be going for around $38 to $40 a piece.

Good enough for my money.

Go Long,

Fool On!!!

1. more than half of the hurricnae season of this year passed, no strong hurricanes.

2. company reinsurance decreased dramatically this will add extra 50 cent/share to EPS each quarter.

I estimated EPS for whole year will be $3.00 to $3.50.

A hurricane season that has largely bypassed 21st Century's market will sharply limit their claims paid. Combine that with increasing diversification in their lines, company growth, and lower reinsurance costs, and you're looking at a potential blockbuster 3Q and 4Q earnings report.

I view TCHC as a great cyclical play, but you have to be a little careful about when you get in and when you get out.

WTF, I bought this again at 14.3

Hurricane season is almost over. They have a good solid base and they are moving more into non-hurricane affected types of business. They should have banter profits witout a hurricane this year. I think they will be back to $20 plus before the end of the year and back to the $30 range next year.

There is no way this lawsuit is settled in the next year. For all of you who think that it will impact the stock price, you are nuts. It was WAY oversold back in the spring and now it is bouncing back. As someone said before, even if it comes back at half the price it was at before the plunge, the timely investor can make quite the profit.

awesome price

i thought i had this picked, but sadly i didn't

I owned TCHC when they provided guidance of $4-4.50. Then they announced earnings and the stock dropped by half overnight. That's why the class action suit was filed and that's why their going to have to pay!!!!

I actually paid money for this stock, back in December '06, before the big drop in May '07.
Oh well, you win some, you lose some.

another way oversold company today.

Currently, TCHC is undervalued due to hurricane expectations and a "bad" Q4 06. These should not deter buyers. Why?

- At current levels, a bad hurricane year is priced into the stock. This means that there would be far less downside than if normal expectations existed.

- Last year, a horrible hurricane season was predicted but never materialized. Should that happen again this year, there would be a huge upside. If the multiple even held steady rather than increasing as it should on a good year, estimated future earnings would give investors a double.

- The bad Q4 06 was due to the state of Florida stepping in to basically take over a huge chunk of the reinsurance business. They essentially took on risk to keep premiums lower for state residents. This action resulted in Q4 06 earnings being pushed into 07. Without the charge (hence the subsequent restatement), earnings were right about where they shoud have been.

When accounting for these factors and the 3.90% dividend they are paying you for your risk, I find this to be a solid investment.

Problem after problem. A lost of stock options, increasing dividend. This company is weighted in Florida and tied up in assessment from the State of Florida. Why in the world would you be continuing to increase dividends at this time? Strange.

dirt cheap good growth going forward.

After recent price decline, this stock is on sale. Excellent reward/risk ratio!

CHECK ITS GROWTH RATE PROJECTION FOR NEXT 2 YEARS

Good valuation, good time to buy, seems like a good well run company! Good results should weather any storms in the next 6 months.