Tkcane Posted May 15, 2012 Share Posted May 15, 2012 Micro Cap Insurance company trading below book, recent AM Best upgrade (tough to come by lately), and solid organic growth. Not sure what the end game is for management, but they already own 47% and have been steady buyers since January of last year. Currently write only New york, but they are beginning an expansion into two additional Northeast states. Thoughts? Link to comment Share on other sites More sharing options...
PlanMaestro Posted May 18, 2012 Share Posted May 18, 2012 Tkcane, have to say that the results reported today were excellent (COR: 70%, EPS $0.2). I am following it and seems very interesting. The problem is that insurance companies are difficult to analyze, especially a micro-cap considering all the large caps available. Link to comment Share on other sites More sharing options...
InelegantInvestor Posted May 18, 2012 Share Posted May 18, 2012 It's tiny, but the combined ratio has been consistently excellent(in the 70s). Not at a discount to book after recent run, but I think still a reasonable value with a reasonable yield. If they can expand and maintain discipline, this could be very interesting. I'm continuing to hold. Link to comment Share on other sites More sharing options...
PlanMaestro Posted May 18, 2012 Share Posted May 18, 2012 Yep, I remember you telling me about it II ... too many distractions. Link to comment Share on other sites More sharing options...
Ham Hockers Posted February 20, 2014 Share Posted February 20, 2014 Anyone still following this name? It looks like several HFs participated in the equity offering. Link to comment Share on other sites More sharing options...
My Own Personal Hedge Fun Posted May 4, 2019 Share Posted May 4, 2019 Yes, invested a small position at $13.57/share and doubled it at $10.85 yesterday. I get that the winter catastrophe losses are pretty bad, yet a quarterly combined ratio of 107 (if I'm calculating correctly ~90 ex-cat + 17 for the quarter incl. cat) doesn't seem so terrible when you're talking about taking about a bad quarter. For the year, combined ratio is still in the 95-96 range including catastrophe losses. So to see this stock drop about 10% a few days ago, and keep dropping every day since seems a bit overdone. It's a thinly traded stock and my hunch is the price movement is a reflection of selling pressure overwhelming the normal volume (by comparison, OTCM frequently moves up or down 3-5% on no news outside of some cannabis company getting upgraded to OTCQX). I like their strategy focusing on distribution through small local insurance brokers, and they are diversifying a little bit geographically but New England winters will always be a risk. Link to comment Share on other sites More sharing options...
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