Even though we can anticipate billions of dollars in claims there still are buying opportunites.

Continue reading Chasing Value: Insurance Stock Review -- Part 3

Chasing Value: Insurance Stock Review -- Part 3 originally appeared on BloggingStocks on Mon, 28 Mar 2011 10:30:00 EST. Please see our terms for use of feeds.

Do you have any interest in insurance companies amidst the turmoil, disaster and current crises in Japan? A crises that followed so closely on the heals of the destruction of the New Zealand city of ChristChurch by a 6.3 magnitude earthquake. Perhaps you think this is even a poorer idea than catching that proverbial falling knife we are always hearing about when stock prices are collapsing.

Certainly there will be billions of dollars in claims. On the other hand, perhaps the burden will be spread around the globe to reinsurer's such that none is struck too hard and this is a buying opportunity. After all, when the dust settles, insurers will cry for mercy, and in particular, rate increases. It is also likely those that never saw the need for insurance have been awakened and demand will increase.

Continue reading Chasing Value: Insurance Stock Review -- Part 2

Chasing Value: Insurance Stock Review -- Part 2 originally appeared on BloggingStocks on Fri, 18 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Insured Profits or a Mountain of Risk?

Chasing Value: Insured Profits or a Mountain of Risk? originally appeared on BloggingStocks on Mon, 14 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Buffett's Next Buys -- You Pick'em

Serious Money: Buffett's Next Buys -- You Pick'em originally appeared on BloggingStocks on Fri, 04 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Treasury to Sell Hartford, Lincoln National Warrants

Treasury to Sell Hartford, Lincoln National Warrants originally appeared on BloggingStocks on Tue, 07 Sep 2010 13:40:00 EST. Please see our terms for use of feeds.

Catastrophe bond capacity is maturing, and not much of it is coming back. In the first quarter, $1.8 billion in cat bond risk capital matured, and only $508 million returned in the form of new issuances, according to Thomson Reuters. This quarter, $2.77 billion is maturing, and the absence of first-time issuers makes it unlikely that the market will replace it all. More than a billion of it was from State Farm's Merna Re transaction. The successor to it has already been issued, cleverly named Merna Re II, at only a fraction of the previous bond.

Continue reading Catastrophe Bond Issuance Gap Is upon Us

Catastrophe Bond Issuance Gap Is upon Us originally appeared on BloggingStocks on Mon, 12 Apr 2010 17:00:00 EST. Please see our terms for use of feeds.

The editor of The Moneypaper explains, "The pair developed a Net Current Asset Value (NCAV) model to determine if a company was worth its market price. Their formula subtracts all liabilities, including short-term debt and preferred stock, from a company's current asset balance"

Continue reading A Value Shopper's List of Graham and Dodd Stocks

A Value Shopper's List of Graham and Dodd Stocks originally appeared on BloggingStocks on Wed, 24 Mar 2010 13:20:00 EST. Please see our terms for use of feeds.

Merna Re, the largest catastrophe bond of all time, is set to mature in June, and State Farm is already putting together its replacement, the creatively named Merna Re II. The successor, planned for issuance in April, is said to be for $400 million in risk capital, though investor demand could push it as high as $700 million. This still pales in comparison to the $1.2 billion that the original brought in the door.

If State Farm is able to stimulate demand for Merna Re II, which would protect the company from non-California earthquake risk in the U.S., it will be third cat bond to come to market in 2010, which is expected to be a strong year for this form of risk transfer. The cat bond market fell silent after the near-collapse of American International Group (AIG) in September 2008 but was still the third busiest in terms of capital issued in the history of the cat bond market. Heading into 2009, prospects for the cat bond space seemed uncertain, but a robust fourth quarter eventually resulted in a year-over-year increase, driven mostly by repeat issuers.

Continue reading State Farm Planning Monster Cat Bond

State Farm Planning Monster Cat Bond originally appeared on BloggingStocks on Fri, 19 Mar 2010 10:10:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: St. Patrick's Day Hat Tricks (GE, FUQI, SNV, HIG, BBI, PLCM, ERC, MEE)

Closing Bell: St. Patrick's Day Hat Tricks (GE, FUQI, SNV, HIG, BBI, PLCM, ERC, MEE) originally appeared on BloggingStocks on Wed, 17 Mar 2010 16:20:00 EST. Please see our terms for use of feeds.

Nine catastrophe bonds have matured so far in the first quarter of 2010, removing $1.8 billion in risk-transfer capacity, according to data from Reuters. The insurance industry has compensated with $508 million in new cat bond risk capital, with the busy fourth quarter helping to absorb what is maturing now. Only one cat bond has closed so far this year, The Hartford's (HIG) $180 million Foundation Re III. But, the first quarter is usually a quiet one for the cat bond market.

It partly replaces the $105 million in protection that Foundation Re D afforded. Swiss Re (SWCEY) and SCOR (SCRYY) are also among the insurance companies with bonds maturing that have at least partial coverage from new cat bond issuances. Another four bonds have matured, however, with no new related issuance, affecting Munich Re (MURGY), AXA (AXA) and others.

Continue reading Cat Bond Market Shift Favors Goldman Sachs

Cat Bond Market Shift Favors Goldman Sachs originally appeared on BloggingStocks on Mon, 15 Feb 2010 12:20:00 EST. Please see our terms for use of feeds.

Continue reading Insurance Companies to See Hot Cat Bond Market

Insurance Companies to See Hot Cat Bond Market originally appeared on BloggingStocks on Mon, 08 Feb 2010 09:30:00 EST. Please see our terms for use of feeds.

Hartford Financial Services (NYSE: HIG) is scheduled to step into the earnings spotlight right after Tuesday's closing bell, with the insurance issue releasing its final third-quarter figures. Analysts are expecting Hartford to report a profit of $1.11 per share, according to Thomson Reuters, representing a dramatic reversal from its year-ago loss of $1.40 per share.

Hartford has a mixed history on the earnings front, with the company exceeding consensus expectations in two of the previous four reporting periods -- and falling short of Wall Street's predictions during the other two quarters. On the plus side, sector peer Lincoln National (NYSE: LNC) recently released a stronger-than-expected third-quarter report, which could bode well for Hartford.

Continue reading Hartford Financial: Volatility high ahead of Q3 report

Hartford Financial: Volatility high ahead of Q3 report originally appeared on BloggingStocks on Tue, 03 Nov 2009 12:20:00 EST. Please see our terms for use of feeds.

News Corp (NYSE: NWS) closed at $11.92. NWS is expected to report Q4 EPS in early August. NWS August option implied volatility is at 53, October is at 47; below its 26-week average of 59, according to Track Data, suggesting decreasing price movement.

Hartford Financial (NYSE: HIG) closed at $14.76. HIG is scheduled to report Q2 EPS on July 30. HIG call option volume of 19,071 contracts compares to put volume of 8,839 contracts. HIG August option implied volatility is at 86, September is at 78; below its 26-weeks average of 104, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: News Corp volatility low into EPS and advertising outlook originally appeared on BloggingStocks on Wed, 29 Jul 2009 08:30:00 EST. Please see our terms for use of feeds.

Cloud computing is a type of on-demand hosting services on the internet. Not only a necessity for mainstream e-commerce sites, it also increases efficiency, is scalable, and lowers expenses. The monetary savings may be misleading to consumers and businesses who do not fully understand the potential risks involved.

With a pay-as-you-go type structure, users are only charged for the amount of traffic, bandwidth, and memory used. Online businesses become more efficient by only utilizing the storage and space needed, while also being assured capacity for any usage increases. The buzz has been building for years, so cloud computing has attracted a diverse customer base, ranging from popular social networks such as Twitter and Facebook, to educational websites of Arizona State and Northwestern University.

Continue reading Cloud computing: Advantages and disadvantage

Cloud computing: Advantages and disadvantage originally appeared on BloggingStocks on Thu, 18 Jun 2009 15:20:00 EST. Please see our terms for use of feeds.

• Keefe Bruyette upgraded American Capital (NASDAQ: AGNC) to Outperform from Market Perform on expectations the company's book value and earnings are trending higher. The firm raised its target price to $22.
• Jefferies upgraded Spartan Stores (NASDAQ: SPTN) to Buy from Hold as it believes the company's EPS and sales momentum will return with the Michigan economy likely bottoming out. Despite upgrading, the firm lowered its target price to $18 from $24.
• Morgan Stanley upgraded U.S. Steel (X) to Overweight from Equal Weight due to its favorable product mix and leverage to improving operating rates.
• CSX Corp. (NYSE: CSX) was upgraded to Buy from Neutral at Goldman.
• Mueller Water (NYSE: MWA) was raised to Perform from Underperform at Oppenheimer.
• Marvell Technology (NASDAQ: MRVL) was upgraded to Outperform from Underperform at JMP Securities.

Continue reading Analyst upgrades, downgrades and initiations: CSX, JBL, MRVL, NUE, STT, X ...

Analyst upgrades, downgrades and initiations: CSX, JBL, MRVL, NUE, STT, X ... originally appeared on BloggingStocks on Tue, 09 Jun 2009 11:40:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Analogic Corp. (NASDAQ: ALOG) Q1 earnings plunged well below expectations due to costs.
• CKE Restaurants Inc. (NYSE: CKR) solid Q3 earnings were in line with analysts expectations.
• Costco Wholesale Corp. (NASDAQ: COST) beat Q1 expectations and same-stores sales increased.
• Dow Chemical Co. (NYSE: DOW) lowered its guidance and announced layoffs and factory closings.
• Eastman Kodak Co. (NYSE: EK) withdrew its guidance due in part to weak consumer spending.
• Electronic Arts Inc. (NASDAQ: ERTS) lowered its outlook due to weaker-than-expected holiday sales.
• Eli Lilly & Co. (NYSE: LLY) offered a full-year profit forecast that missed analysts' expectations.
• FedEx Corp. (NYSE: FDX) lowered its earnings guidance and announced price increases.
• FuelCell Energy Inc. (NASDAQ: FCEL) reported a deeper-than-expected loss but topped sales estimates.
• H&R Block Inc. (NYSE: HRB) Q2 net loss was in line with expectations but revenue fell short.
• Hartford Financial Services Group (NYSE: HIG) raised its full-year forecast, doubling the share price.
• Hooker Furniture Corp. (NASDAQ: HOFT) shares sold off following disappointing Q3 results and outlook.
• Krispy Kreme Doughnuts Inc. (NYSE: KKD) reported a deeper-than-expected Q3 loss on increased costs.

Continue reading Earnings highlights: Costco, Kroger, Krispy Kreme, Lululemon, FedEx, P&G and others

Earnings highlights: Costco, Kroger, Krispy Kreme, Lululemon, FedEx, P&G and others originally appeared on BloggingStocks on Sat, 13 Dec 2008 14:40:00 EST. Please see our terms for use of feeds.

The Treasury has decided that just bailing out American International Group (NYSE: AIG) to the tune of $122.8 billion and counting is not going far enough. Now it's time to use our money to bail out more insurance companies. As it turns out, the insurers that are likely to get the money are the same ones that took a blood bath earlier this month. The companies seeking a bailout include Met Life (NYSE: MET), Hartford Financial Services (NYSE: HIG), and Prudential Financial (NYSE: PRU).

You may be wondering, what crime did I commit that makes it socially acceptable for my money to be used to bailout the insurance industry? Aren't my home, auto, and life insurance premiums up to date? If so, what gives the insurance industry the right to use my taxes to pay for their investment mistakes? Because that is exactly what the insurance companies are doing.

How so? Their books are loaded down with asset-backed securities such as mortgage-backed securities (MBSs) and collateralized debt obligations (CDOs) that vastly exceed their shareholder's equity. These securities are not worth much -- in fact, a recent report suggested that CDOs were worth 10 cents on the dollar at best. If the insurers have these stated on their books at 60 cents on the dollar, the mark to market process could wipe out a significant portion of their capital.

Continue reading More insurance bailouts on the way

More insurance bailouts on the way originally appeared on BloggingStocks on Sat, 25 Oct 2008 07:52:00 EST. Please see our terms for use of feeds.

Hartford Financial (NYSE: HIG) closed at $62.06 Thursday. HIG October option implied volatility of 52 is above its 26-week average of 40 according to Track Data, suggesting larger price movement.

Travelers (NYSE: TRV), a leading property casualty insurer, closed at $44.61 Thursday. TRV October option implied volatility of 37 is above its 26-week average of 32 according to Track Data, indicating larger price movement.

Genworth Financial (NYSE: GNW) closed at $15.02 Thursday. GNW October option implied volatility of 71 is above its 26-week average of 52 according to Track Data, suggesting larger price movement.

XL Capital (NYSE: XL), provider of global reinsurance coverage, closed at $18.63 Thursday. XL October option implied volatility of 78 is above its 26-week average of 73 according to Track Data, suggesting larger movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Insurers' volatilities elevated; HIG, TRV, GNW, XL originally appeared on BloggingStocks on Fri, 12 Sep 2008 08:57:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merriman downgraded shares of UQM Technologies Inc (AMEX: UQM) to Neutral from Buy after Phoenix Motorcars delayed its electric vehicle manufacturing ramp, as they view the company's Phoenix Motorcars relationship as the primary driver for near-term growth.
• Citigroup downgraded shares of Blue Nile Inc (NASDAQ: NILE) to Sell from Hold on valuation as they believe near-term risks outweigh rewards. They see risk to Q3 revenue estimates and their analysis suggests an in-line quarter at best.
• NPS Pharmaceuticals Inc (NASDAQ: NPSP) was downgraded to Neutral from Buy at Oppenheimer and to Hold from Buy at Jefferies. Oppenheimer lowered shares following disappointing Gattex data; Jefferies believes the P3 GATTEX results in short bowel syndrome make the chances of successful low-dose approval unpredictable.
• Friedman Billings downgraded Massey Energy Company (NYSE: MEE) to Underperform from Market Perform based on valuation, 2008/2009 outlook, spinoff of Patriot Coal appears to be a better investment option, and another blow to mountaintop mining and permit issues.
• JP Morgan removed The Hartford Financial Services Group Inc (NYSE: HIG) from their Focus List; however, they believe the company's fundamental outlook remains positive and expects strong Q3 results.

• Morgan Stanley downgraded EV3 Inc (NASDAQ: EVVV) to Underweight from Equal Weight.
• Business Objects SA (NASDAQ: BOBJ) was downgraded to Hold from Buy at Roth Capital.
• Goldman downgraded The Nasdaq Stock Market Inc (NASDAQ: NDAQ) to Neutral from Buy.
• Banc of America downgraded The Pepsi Bottling Group Inc (NYSE: PBG) to Neutral from Buy.

Analyst downgrades: UQM, NILE, NPSP, MEE and HIG originally appeared on BloggingStocks on Fri, 12 Oct 2007 10:55:00 EST. Please see our terms for use of feeds.

• Hartford Financial (NYSE: HIG) to hold a 10am conference call regarding 2007 earnings guidance
• FCC to hold a hearing on Media Ownership at 1pm
• Texas Instruments (NYSE: TXN) to hold Q4 mid-quarter update at 5pm

• Six Flags (NYSE: SIX) to hold mid-quarter update at 8:30am
• Goldman Sachs (NYSE: GS) to hold Q4 earnings conference call at 11am
• General Electric (NYSE: GE) to hold financial update conference call at 3pm

• Dynegy (NYSE: DYN) to hold 2007 earnings and cash flow estimates webcast at 8am
• Pennsylvania Gaming Control Board to hold public hearing at 9am

Thursday December 14

• Bear Stearns (NYSE: BSC) to hold Q4 earnings conference call at 10am
• PDUFA Date for Novartis' (NYSE: NVS) Rasilez

Friday December 15

• PDUFA Date for Oscient Pharmaceuticals' (NASDAQ: OSCI) Factive

Earnings news due out this week: Highlights originally appeared on BloggingStocks on Mon, 11 Dec 2006 09:06:00 EST. Please see our terms for use of feeds.