I bought back in the other day1000s @ $16.56. The dividend is great. I collected the last and sold afterwards.
Now I am in again. Will hold long .Charles Schwab rates ORI an "A" strong buy. GLTU
Screw the charts! I am a fundamentals guy, and I have just finished some heavy buying of ORI. I KNOW a good buy when I see one. Bottom? Who knows, but what I do know is this stock will soon be higher on the basis of fundamentals.
Sentiment: Strong Buy
While I do understand that with so many subsidiaries ORI is a complex company to analyze thoroughly and Fitch may have viewed this as a bad cost/benefit exercise, I think there may be more to this downslide than is apparent. The 2nd Q results may miss analyst forecasts, and, the housing market has gotten weak.
It's not a downgrade. It sounds as if Fitch doesn't see the economic benefit of providing the ratings. But maybe it was interpreted as a downgrade. I don't know why the stock fell back to the 16.50 area. In the absence of any other news, I see it as a buying opportunity.
The reason for today's price drop:
The following is a press release from Fitch Ratings :
Fitch Ratings-Chicago- 03 July 2014 : Fitch Ratings plans to withdraw the ratings on Old Republic International Corporation and its subsidiaries on or about Aug. 3, 2014 , for commercial reasons. Fitch currently rates Old Republic International Corporation and its subsidiaries as follows:
Old Republic International Corp. :
--Issuer Default Rating (IDR) at 'BBB';
-- $550 million 3.75% senior notes due March 15, 2018 at 'BBB-'.
Bituminous Casualty Corp.
Bituminous Fire & Marine Insurance Co.
Great West Casualty Co.
Old Republic Insurance Co.
Old Republic Lloyds of Texas
Old Republic General Insurance Co.
Old Republic Surety Co.
Manufacturers Alliance Insurance Co.
Pennsylvania Manufacturers' Association Insurance Co.
Pennsylvania Manufacturers Indemnity Co.
American Guaranty Title Insurance Co.
Mississippi Valley Title Insurance Co.
Old Republic National Title Insurance Co.
--Insurer Financial Strength (IFS) at 'A'.
The Rating Outlook is Stable.
Fitch reserves the right in its sole discretion to withdraw or maintain any rating at any time for any reason it deems sufficient. Fitch believes that investors benefit from increased rating coverage by Fitch and is providing approximately 30 days' notice to the market on the withdrawal of Old Republic International Corporation and its subsidiaries ratings as a courtesy to investors.
Fitch's last rating action occurred on April 23, 2014 , at which time Fitch upgraded its ratings on Old Republic International Corporation and its subsidiaries.
Fitch Ratings, Inc.
Just put an order in for 16.53 to add to my position...nice divvy and feel pretty safe holding this one.
Forbes also recommended ORI recently with an article titled:
Old Republic International Named Top Dividend Stock With Insider Buying and 4.36% Yield (ORI)
So, it appears, after year of getting things in order in obscurity, the mainstream media is starting to recognize ORI. Still about 25% undervalued compared to its peers on yield, p/e, p/s basis, so this could give the push to the next level.
I just put an order in to buy. I'm seriously now wondering if I should cancel it now. Cramer is usually the kiss of death to a stock. I honestly think he is a pumper dumper. Not sure what to do now because I like the Company.