I see PRE is getting bought out around book value. Different model than ORI, but it's unglamorous, steady insurance, like ORI. No reason to think ORI will get bought out, but I have always half worried about it since the stock has been so cheap.
ORI stock price is struggling to get over book value now. I thought we'd be back over 20 long before now. It would be very frustrating to get bought out at 17-18 just before the stock was about to run back to 20. A buyout at 18 would make for a great 1 day gain, but it would be frustrating to wait this long and then not get more. Just thinking about it after I saw PRE move.
I agree NYCB is fully valued on today's metrics, BUT my holding is based first on the solid high yield, PLUS what I believe is brewing (accretive buy of another bank). My guess is we will very soon know. As for ORI, it remains my first choice to park money. Both very conservative high yield holdings.
That is exactly the function of ORI in my folio....it is solid and not going away and can sustain a dividend in tough times. The biotech fueled party is gonna end one of these days and ORI is a nice one to have if/when that does happen.
Don't get me wrong, stein, I am long as well. And I intend to keep holding. I think we will all be rewarded eventually. My frustration is that we haven't been able to get any momentum. Al's stodgy approach probably was a plus during the financial crisis. But the financial crisis ended a long time ago, and Al is still talking about problems rather than successes.
I like insurance stocks - I own a number of them. CINF just announced their dividend increase on Friday. Like all the others I own, their dividend increase is significant compared to ORI's. If ORI would trade at the same dividend yield as CINF, it would be over $20. Wall street is punishing this stock - and until Al goes, I don't expect that to change. But I do recommend the stock - he won't be around forever.
The stock was making a top when it was $17. My average is well below that. I have a lot of confidence the top will be exceeded this year, all the while getting 74c this year. I think the stock has a good chance to double in 5 years. That's good enough performance for me to be happy. It just takes patience. And, if I am wrong, the downside from here is minimal and 5% is great considering what 5 year notes return.