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7 pts

Opinion on  Universal Insurance Holdings (UVE)     Sector: Financial  >  Industry: Insurance (Prop. & Casualty)
This stock will have an excellent run

Aug 30, 2008 07:07 PM GMT
Ry_3d320
Return Risk
-24.65% LOW
Sr. Analyst

Many insurance companies got slammed along with financials because so many of them are intertwined in similar business models.

Thankfully, UVE was one who got slammed.  The stock has lost 35% of its value in the last year. 

But there are so many positive things about this company I can't even list them all here.  Despite the majority negative sentiment on UVE, they have a pristine looking balance sheet, their revenue is actually higher than their market cap right now!  (Generally insurance companies in US markets if sold are priced at 2 - 2.5 X gross revenue, so you immediately have a huge upside potential).  And the other spectacular icing, which is criteria number one when I try to find a company that will make me a nice retirement gift - they pay a nice little dividend and also offer a DRIP program for any enthusiasts out there.

All in all a fantastic buy! 

Happy trading.

Coreadrin.


UVE:  This call was made on 08/30/08 @ $3.73
Rating:   Positive   $3.73 (08/30/08)
Closed:   02/19/2009 @ $3.61 (-3.22% in 172 days)
Target:   $8.00 (+114.48%) in > one year
Allocation:   7.6% of portfolio


Comments (2)

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Mgp
Mathieu Godbout Paquet   73%     1 point   commented 461 days ago reply

Looks like you've done your research on this company. I'm not the kind of guy you look deeply in thinly-traded stock financial statements but there is some very undervalued companies in that category. I agree on the fact that this company is not highly valued, I see a 2.7 p/e... that is very low valuation. Plus, the dividend is at ~7.5%. I will not rate this stock but I will comment on your analysis pointing the optimal buy point. The stock is range-trading between 3.40 and 3.80 for two months now, please do yourself a favor and buy it as close as possible to 3.40. I don't have a opinion on this stock, just recommending the buyers to buy as close as possible to support.

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Mgp
Mathieu Godbout Paquet   73%     1 point   commented 461 days ago reply

Looks like you've done your research on this company. I'm not the kind of guy you look deeply in thinly-traded stock financial statements but there is some very undervalued companies in that category. I agree on the fact that this company is not highly valued, I see a 2.7 p/e... that is very low valuation. Plus, the dividend is at ~7.5%. I will not rate this stock but I will comment on your analysis pointing the optimal buy point. The stock is range-trading between 3.40 and 3.80 for two months now, please do yourself a favor and buy it as close as possible to 3.40. I don't have a opinion on this stock, just recommending the buyers to buy as close as possible to support.


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