ResearchTeam Rating Change
Rating Change for Old Republic International Corp (ORI):
Upgraded to HOLD from REDUCE on 3/10/14
Posters and Investors don't know about you but this upgrade is long over due as The Street has had a rating of Buy on it since 5/28/13....Ford also a buy I personally have wonder why a Company as ORI,with a stable outlook and good Divd.should ever have had a rating of Reduce!!!
I didn't get the joke. But if anyone is using a stock screener focusing on earnings growth, I can tell you that you're going to get misleading results. The company is extremely profitable and it's accelerating. I don't care what the effing stock screener says, lol!
Sentiment: Strong Buy
Hi,ss71451,Sorry late with Re; was south of the boarder no not really new to investing just kind of a joke about the Div.but are you new to reading PEG,has a lot to do with growth example (call it PEG 101)PE=p/e o.k. G=ann.growth.so divd,p/e,by ann growth =PEG,then it can be compared to others in the same sector.Avg,in this sector is between 8 and 9 ORI has NO!PEG...
There was little chance of a bigger dividend increase as long as they were still under the scrutiny of regulatory oversight. I was hoping they'd get the problematic division spun off before now and reward long-time investors with more than the .01 increase that we've seen since the financial crisis - which ended some time ago.
Oh well. No reason to sell since I still expect the spinoff and bigger dividend increases in the future. But it's taking longer than I was expecting.
hey posters and none posters lets see cats in the caradle about last to post,how bout IT!Lets say a person had 1000 shares in ORI and held it for a Q @ the present pps how much would that person make from the Divd.?I'm only asking cuz I haven't a clue lol No really I think ORI is showing a deal in strong stabality in the up on Divd what is confusing to me is the Ann growth is not to be seen in the PEG # any thoughts on that or others?
I missed the 14.20 low of the day, but still locked in a 5% yield. ORI is my largest position (not counting my core S&P500 ETF holdings). If it gets back to $17 any time soon, that's an easy 20% return. If it grows slowly and only gets to $20 after another 5-6 years, it's still an 11% total annual return. I'm not even counting reinvesting dividends or the potential for increasing dividends.
All I can say is thanks for your post and the info is very helpful to me as a new investor in ORI not even getting my 1st Divd. yet but have already added shares on "Bad Friday" can't fathom how are good ER got ran over like a train by the Market!
Ouch, that hurt my portfolio value! I wish I had waited to add. But I did buy a few more shares on Friday. I'm looking for cash to buy more next week. The dividend is more than secure (they had no problem covering it in the middle of the financial crisis) and over time it will increase faster than .01 per year.
I think we got burned by two things on Thursday/Friday - one is what the caller referenced: existing shareholders get nothing from the spinoff of the runoff divisions. At the last attempt at a spinoff (that was nixed before it occurred) even though the new company wasn't going to be worth much, at least existing shareholders were going to get shares in it.
Second, the general market selloff. If the economy weakens, ORI's 2 divisions (that will remain after the spinoff) have some economic sensitivity. So perhaps the perception is that they will be stagnant until the economy gains momentum again. That's my best guess. I think it's a misplaced concern. The "new" ORI will be profitable in all economic conditions, although some years will be better than others.
At this point the spinoff can't happen fast enough for me. It's holding us back. The company can and will increase the dividend at a faster rate once the MI/CCI divisions are officially gone. But they have to be officially gone. It should happen very soon. But in his usual unconcern over what investors think, crusty old Al didn't try to alleviate everyone's concerns over it. If he can get the deal done in a few weeks, maybe we'll be seeing a modest boost in the dividend this year - possibly .04 (.01 per quarter) instead of .01 per year as we've seen since the financial crisis. Then even more in 2015 and beyond. Particularly for income investors, this selloff is a great opportunity.
Sentiment: Strong Buy
Insurance is a long term game, highlight by short term events (insured losses). Once the runoff is gone, or nearly complete, they company won’t need to justify each action to overbearing regulators. If the company can continue to increase revenue, control costs and losses, runoff the prior mistakes, we’ll all be fine especially in an increasing yield market from the treasury. Now that we are in the mid-teens again, I’m going to add to my very long position and smile at the divis each quarter.
Still #9 highest yield on the list of dividend champions and dividend easily covered, growing book value. Most of the other yield-type insurance companies have moved back to higher valuations, so ORI will get there. Maybe it's still a bit messy for some investors to get into.
Very curious that some one is selling after the earnings. I heard the call and one group was unhappy that the company was looking out for policy holders and not shareholders. in the long run that is going to be good for shareholders.
Sentiment: Strong Buy
Now that the mortgage business has stabilized and is in fact adding to profits now, I think you see ORI get rerated higher. It is about 25% cheaper than peers based on many metrics and historical valuations, so it should move to in-line, I think this year.
Plus, it will have no problem increasing it's dividend again maintaining its dividend aristocrat status and people are still hunting for income with the low bond yields available.
The general increase in market returns, especially T-bills hitting 3% should also help assuming loss ratios do not increase. The yield is still so nice that the real return, at 20, is closer to 25% in one year. That would be a big hit in any year.
I may be early, but I think we'll be significantly higher this year. The stock should be in the 20's by year end. A buy at 17 per share plus the dividend would be a 20% total return if the stock hits 20. Wall Street probably wants to see the specifics on the mortgage insurance spinoff before they jump on board. But I think it's coming and will be very bullish.